Performance has numerous connotations that go far beyond the final revenue number. It largely depends upon your business goals or areas where you would like to see improvement. That may mean focusing on market penetration or increasing customer loyalty through your service offerings. It may be year over year growth or net promoter score.
Your sales rep's performance involves looking at more than profits. There are many cascading impacts to employee success, such as reduced attrition, improved company culture, and the ability to attract high-performing salespeople. Ultimately, they all contribute to the bottom line, but their impacts are much further reaching. If you are wondering how to evaluate sales staff performance, the most effective path is through the lens of your current sales process.
There are potentially endless KPIs you could choose, depending on your organization's objectives. However, here are five KPIs that address selling behaviors that can positively impact sales performance for most sales organizations:
This area is where many sales organizations can fall flat in employee satisfaction and growth opportunities. While setting expectations is vital, they must be actionable and measurable. For instance, a goal of increasing sales is expected at some point. However, unless you have a way to measure progress against the goal, there is no way for the salesperson to know what is below, at, or above expectations. In contrast, a goal to increase sales by 5% over the last quarter is clear, measurable, and actionable.
Another critical factor in how to evaluate sales staff performance is tracking leading indicators for growth and potential. For example, the number of times a customer's need was uncovered and confirmed may show an aptitude for finding new ways to serve customers that could lead to increased sales and greater customer satisfaction. Other indicators could be the number of high-quality presentations given, how many converted to opportunities, or how well or often they use fact-based trade math to present potential solution options to customers.
One of the best ways to evaluate your sales rep's potential strengths or areas in need of coaching is to attend sales calls with them. Observing how they interact with their customers, the techniques they use to overcome objections, and the insight they have into client issues can give you a template for their coaching and growth plan. The key is using a fact-based, objective, and consistent method of evaluating them in the field, such as Fox Selling System's Coaching Scorecard.
Using good onboarding practices like skills assessments can increase retention by 82%. However, selling skills assessments are vital for more than evaluating potential new hires or onboarding. Using a combination of manager assessment and the salesperson's self-assessment, you can get a more telling 360° view into their potential. It gives talking points for coaching and can encourage self-awareness, as well as an opportunity to reiterate goals and expectations.
Many sales leaders struggle with how to evaluate sales staff performance in a way that gives insight into potential and opportunities, not just a revenue metric. They know that there are many other ways to measure success. One of the best ways to achieve your sales goals while growing a team of engaged, high-performing salespeople is by investing in their learning and development and using the right tools for assessment and coaching. Achieve consistent, predictable, repeatable sales results with Fox Selling System.