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.



SPI
Author:
SPI, Sales Performance Review

Sales Performance International (SPI) is a global sales performance improvement firm dedicated to helping the world's leading corporations elevate their sales relationships and drive measurable, sustainable revenue growth and operational sales performance improvement.

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