Sales Management Sets Minimum Metrics
During these unsettling economic times, I often find myself in conversations with sales leaders about how to determine when someone should be let go from the sales team. In response, I frequently ask how the sales rep is performing against minimum expectation metrics. Surprisingly, I find that many times company leadership hasn’t clearly defined their breakeven point for sales people.
Jim, the sales manager of an audiology firm, was frustrated and disappointed with his audiologists’ performance. They weren’t fitting the minimum number of hearing instruments needed to even cover overhead costs.
So, Jim calculated the margin each salesperson needed to produce, since he hadn’t calculated that number before. Know the breakeven number gave him both clarity and confidence in his decision making.
Jim realized that he had never communicated this minimal standard to his staff.
So, in his weekly one-on-ones, he presented each sales person with these minimum expectation metrics, the minimum amount of production needed to cover their expenses and justify their stay with the company.
Then he asked his team to step up their level of effort with an expanded activity plan.
After these conversations, Jim implemented a scorecard system to give each sales person accurate feedback on their performance against plan. He started to make decisions using data and to insist on realism during one-on-one meetings.
By clarifying minimum expectations, his sales team knew what the guidelines were and what they needed to do to not only keep their job but to step up their performance and excel.
Point: Expectation Metrics help to create motivation and personal accountability among employees. Clear-cut expectation metrics help salespeople focus their efforts on high-payoff activities; eventually allowing them to surpass their targets.
What are the minimum metrics for your sales team? How regularly are you providing feedback to them on their performance against plan?