Insufficient Accountability – There are quotas, sales managers, and a compensation plan, yet revenues and profits are lagging. Why?
- Only revenue is being measured and not sales activities.
- Sales managers only work with reps after they miss their quota.
We call this Revenue Myopia, here are the symptoms:
- Some reps make quota by closing one or two big deals
- Successful reps consume more resources than all the other reps
- Some reps reach their quota, while under-delivering on margin
- Some territories and quotas are inappropriate
Revenue Myopia causes the following:
- Not knowing why a rep is underperforming
- Not understanding the daily behaviors that lead to outstanding performance
- Inaccurate or incomplete forecasts
- Little timely performance feedback provided to reps
- Keeping reps that bring in low-margin business because they reach quota
- Not understanding what stops reps during the sales process
- Not tasking sales managers to coach their reps
Items to think about and implement:
- Determine which activities to measure and how to measure them
- Create appropriate territories, assignments, and quotas
- Develop sales scorecards for daily/weekly feedback and coaching
- Learn how to use sales scorecards to evaluate and develop reps
- Design communication and processes to improve forecast accuracy
Still not sure what to do or how to implement? Contact Pivotal Advisors and learn more about our approach to strategic direction and sales growth. Email email@example.com or call 952.226.3381.