For every organization, sales is a highly important role. It generates revenues & profits for the company and creates growth for every member of the organization. It’s also a measurable role, where the results of the efforts can be quantified and highlighted across the organization. When you are able to conduct proper performance evaluation, you can drive sales performance and increase the rate of growth for your company.
While the numbered results displayed by the sales team are an easy parameter for performance evaluation, it may not always tell the whole story. So let’s take a look at how we can conduct performance evaluation and increase the sales for your organization.
Create a Skills Matrix
Before you get a precise idea on the performance of your sales team, first you have to decide what makes your sales representative successful. What are the competencies & skills that they need to possess? What knowledge do they need to learn to achieve their goals?
This is where the skills matrix comes into play. A skill matrix is used to determine & identify the set of skills that sales reps need to possess. This helps to lay the foundation for your sales program. Using the skill matrix, you can create employee training records & generate training plans for your sales team to ensure that they complete the necessary training and obtain the required skills.
When creating your skills matrix, there are few things you need to take into consideration.
- You will likely have to create the skills matrix from scratch. You can do this by collaborating with the partners across the sales department. If you already have pre-existing competency models designed, you can work on them to make it more specific to the functions of the sales roles.
- Do remember that this matrix will be unique for every type of sales role. So best to keep it simple and start off with one role. Begin by creating a simple list of skills needed. Once you have that, you will start identifying patterns which will help you in fine tuning & simplifying your training strategy.
- There are various tools available out there to help you build the training matrix. Training spreadsheets are good enough for small companies and small teams. For larger sales teams , a training management software would be a better choice.
Measure Performance Progression
Now that you have built the skills matrix, you need to determine how to measure the skills to evaluate the performance of your sales reps. This evaluation is crucial as it helps to understand the level of ability and overall performance progress. Check out our blog on optimizing employee performance management.
It will guide you in the correct direction to ensure that your performance evaluation steps are driving sales performance.
There are some basic inputs that need to be considered while evaluating & measuring the performance. Some examples of the same are listed below.
One of the easiest, but also one of the most subjective measures of performance. Self appraisals gather the perspective of the sales reps and their managers on their capabilities and their competency to achieve a skill. You don’t need to complicate things over here. Keep it simple with a basic survey. The focus in this exercise should be on sharing feedback in an easy way and collec the desired data.
Performance metrics is one of the most complex measures. These metrics are generally available on most CRM systems, but they are highly nuanced. That is because a one-on-one relationship between the metrics and skill is non-existent.
It’s important to define the performance levels for metrics as you gather information and begin to evaluate and analyse. One way to think about it is classifying each metric into one of the three categories: over performance, justifiable performance, & under performance.
Throughout the sales quarter performance evaluation are the opportunities to determine the ability and capability of the sales reps. Evaluation techniques like role-play evaluation, feedback practice, reviewing scorecards and/or certifications achieved.
As you gather this information, you will more likely leverage sales training tools & conversation intelligence skills as the primary factors.
Once you have determined the metrics and captured the data, the next step is to analyse the information and present the same in a format for yourself, your sales reps and their managers. Your objective is to combine the inputs for each skill in your matrix, and generate a “score” for comparison. To evaluate performance correctly, think how each of the measures listed has an impact on the performance of the skill.
Build an Action Plan
The simplest and straightforward way to use this data is to identify the areas of opportunities across your team and its role analysis and drive your enablement training programs. But this data is really effective at individual levels. Let’s take a look at how you can use the data to take specific action to focus on developing the skills needed for better sales performance.
- The first and most important thing you need to do is enable your managers. You need to spend a good quality amount of time in helping them to understand the importance of these performance evaluations and how their teams will benefit from them. You also need to train them on how to interpret these evaluations, how to coach reps individually, and how to manage their development time effectively.
- When you get on to developing individual plans, analyse the data to find areas of opportunity. These could be skill gaps that need to be addressed or additional skill training to accelerate performance growth. You don’t always have to focus on skills that rank lower on the list. Each rep can focus on one particular skill and should build their sales plan around it.
- Once the prime skill is identified and defined, document the required actionable steps that will be taken throughout the sales quarter to improve that skill. This mission requires significant commitment from both the sales rep and the manager. These steps could vary in nature such as a sales training program, targeted feedback, role playing scenarios and many others.
- Once the action plan is executed, it should be reviewed regularly to ensure all the members are following the plan religiously.
The consistency of good sales is the lifeblood of every organization. Without understanding how we need to succeed, we can’t achieve consistent success across the team members and across various teams. But with the right tools and performance evaluation, the teams and their members will be on the right track every time.
Conduct Performance Evaluations and Drive Sales with the Help of KloudLearn LMS
Train your sales team to generate the highest sales results with KloudLearn. Our intuitive learning platform helps you create personalized and engaging training courses that will help your sales team develop the critical skills required to close deals and drive revenue. Our content library also has a collection of training courses like Project Management, Sales Training, Cloud Computing, Customer Relationships, and much more. Our course analytics and custom reports feature help you analyze and evaluate your sales reps’ performance. Visit KloudLearn to learn more.