Sales managers play a critical role in an organization’s success. Through their efforts and those of their teams, they help generate the revenue that sustains and grows the organization’s business.

Sales Managers’ performances are evaluated against 4 metrics:

  1. Revenue – most sales managers have a fiduciary responsibility to drive revenue in a sustainable fashion. These metrics include overall revenue production, reasonable margins, and pipeline metrics.
  2. Predictability – effective sales management is vital to accurate forecasting. A systematic evidence-based sales process supported by a customer relationship management system or CRM can aid these efforts.
  3. Cost of sale – sales managers are often responsible for maximizing revenue but also minimizing the cost of sales across their team’s opportunities and pipelines. Common metrics include time utilization, resource utilization, and sales pursuit cost.
  4. Seller development – to meet individual and team goals, sales managers must actively assess and develop their team. Some common metrics might include percentage of quota attainment by seller, seller turnover ratio, and average length of ramp up time.



Dario Priolo
Author:
Dario Priolo, Chief Marketing Officer

Dario is SPI's Chief Marketing Officer and Demand Generation practice leader. He has over 15 years experience running marketing and demand generation functions in global sales and human capital consulting firms, and consulting with professional services and technology clients on these matters.

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