Evaluating performance is a crucial task for any sales team, especially in the competitive and dynamic media industry. However, many sales teams make common mistakes that can undermine their results, demotivate their staff, and miss out on opportunities. In this article, we will discuss some of these mistakes and how to avoid them.
One of the most common mistakes sales teams make is not setting clear and realistic goals for their performance. Without goals, it is hard to measure progress, identify strengths and weaknesses, and motivate salespeople. Goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and aligned with the overall strategy and vision of the media organization. Sales teams should also review and adjust their goals regularly, based on feedback, data, and market changes.
All sales success come from connection to right person and building a relationship of strong communication that you are listening and learning your client's needs. You then offer your taylored services/products as the best solutions to these defined needs. Close the deal by asking for order. Always learn (have great notes) and follow-up and develop referrals from new and existing clients.
Another common mistake sales teams make is relying on outdated or inaccurate data to evaluate their performance. Data is essential for tracking and analyzing sales activities, outcomes, and trends, but it needs to be accurate, reliable, and up-to-date. Sales teams should use tools and systems that can collect, store, and process data efficiently and securely, and avoid manual or error-prone methods. Sales teams should also verify and validate their data sources, and ensure that they are relevant and consistent with their goals and metrics.
A third common mistake sales teams make is using too many or too few metrics to evaluate their performance. Metrics are indicators that measure and compare different aspects of sales performance, such as revenue, conversion, retention, satisfaction, and loyalty. However, using too many metrics can lead to confusion, overload, and contradiction, while using too few metrics can lead to oversimplification, bias, and omission. Sales teams should use a balanced and relevant set of metrics that can capture the complexity and diversity of their media sales performance, and focus on the key drivers and outcomes of their success.
Selecting the right metrics is pivotal for effective sales performance evaluation. Overcomplicating metrics can lead to confusion and inefficiency, while oversimplification may obscure crucial insights. Key Performance Indicators (KPIs) such as sales growth rate, customer acquisition cost, customer lifetime value, and sales conversion rate offer a balanced view of sales performance. Additionally, metrics like lead-to-close ratio, sales velocity, and sales pipeline coverage provide insights into the efficiency and effectiveness of the sales process. By focusing on a concise yet comprehensive set of KPIs, sales teams can gain actionable insights to drive informed decision-making and continuous improvement.
Zach Johnson nailed it: too many metrics tend to distract you from the big picture. Metrics are necessary, but why track them if I can't make a decision from them? Metrics should be part of the decision, but only some of it.
Using too many or too few metrics can also be phrased as using the right metrics, which may vary from seller to seller on your team. For newer sellers, you might focus your metrics on outreaches. For seasoned sellers, the metrics might be more performance based. The difference in what they know / are expected to deliver should change the metrics. On the same note, sales positions with a longer sales cycle should be judged by different metrics as well. If your sales cycle is a one call close, then you can quickly evaluate whether someone is meeting that metric. If the sales process is a 3-6 month close, then you have to look over a longer time horizon and at other metrics to determine whether someone is meeting performance goals.
A fourth common mistake sales teams make is not benchmarking their performance against their competitors or industry standards. Benchmarking is a process of comparing and contrasting one's performance with others who have similar or higher standards, and identifying gaps and opportunities for improvement. Benchmarking can help sales teams to understand their position and performance in the media market, and to learn from the best practices and innovations of others. Sales teams should use reliable and comparable data sources, and select relevant and realistic benchmarks for their media sales performance.
A fifth common mistake sales teams make is not communicating or celebrating their performance results. Communication and celebration are important for sharing and acknowledging the achievements and challenges of sales teams, and for creating a positive and supportive culture. Communication and celebration can also foster feedback, learning, and recognition, and enhance the motivation and engagement of salespeople. Sales teams should communicate and celebrate their performance results regularly, transparently, and constructively, and use different channels and formats to reach and involve their internal and external stakeholders.
A sixth and final common mistake sales teams make is not taking action based on their performance results. Performance results are not only for reporting and reviewing, but also for planning and improving. Sales teams should use their performance results to identify and prioritize areas for improvement, and to design and implement action plans that can address their challenges and leverage their opportunities. Sales teams should also monitor and evaluate the impact and effectiveness of their actions, and make adjustments as needed.
Remember, as a manager, your team's performance is your performance. If you don't hold them accountable to their results, you will be the one shown the door (and deservedly so). Accountability doesn't require hitting everyone with a sledgehammer, but it does require your active involvement in the activity, development, growth, and sometimes turnover of your sales team.
Remember that a salesperson's job is full of uncontrollable variables. Their job is to control what they can control (including new business outreaches), but they will also deal with losses that they cannot control. Your job as their manager is to measure them against metrics, but also to add that context to your evaluation and coach them to success based on how they handle the things they can control. Don't make an uncontrollable situation even worse by piling onto the salesperson. Instead, help them salvage what they can from the current client and help them find new business to offset the loss.