Companies often fail to exploit their full sales potential as they do not have a realistic picture of the actual marketing and sales efforts. Sales performance refers to the capability of the seller to influence the buyer to purchase services or goods by making an informed decision.

Surveys conducted in the year 2010 with a sample of more than 2,500 companies have revealed that there is a clear difference between the ideal sales capacity and the actual sales performance by companies. Reports also reveal that only about 4.6% of the companies satisfy the criteria required for achieving World Class Sales. Moreover, in a sample of nearly 100,000 sales managers, only 7% qualified to be top class.

The following are some simple tips to reduce the gap between the ideals sales targets and the actual performance.

Set realistic goals and monitor them periodically:

Companies need to perform a reality check on the current sales status and set short term as well as long term performance targets. These targets need to be monitored and evaluated periodically to achieve a steady growth. Companies who fall short of the targets should seek the advice of consultants or experts to assess the shortcoming and implement the necessary changes at all levels. 

Monitor the entire hierarchy of the sales line through score cards:

For effective sales performance, the efficiency of the process should be assessed at all levels of hierarchy in order to get the real picture. In case this cannot be done in-house, companies need to partner with organizations that not only understand the current strategies but also are in-line with the goals of the company. This is important to identify the problem areas and bring about desirable transformations across the hierarchy to achieve desirable results.

Sales forecast and accurate assessment of the actual target:

Companies need to be able to forecast the sales potential and also accurately assess the actual targets to get clarity about the current situation.  In case there is a large difference between the targets and the real figures, a reality check needs to be done on the types of deals that the company is currently working on to see whether any changes need to be made in this area to increase efficiency.

References

1.  CSO Insights 17th annual Sales Performance Optimization (SPO) study.

2.  Objective Management Group