Performing KPI analysis only to revenues is substantial but not adequate to assess if there is an issue with the sales force performance. As commissions and other sales compensation plans are considered the major factor that drives sales, its analysis is equally important.
Such an analysis answers questions like the below:
- Is the incentives system in place adequately designed to bring the needed results and does it reflect the strategy of the organization?
- Is there a fair and consistent target allocation and territory distribution to sales people?
- Are there demotivation factors that distract sales people from performing their tasks?
- Is sales force homogeneous and aligned with the sales strategy of the firm?
- Are products sales and their profitability lined up with the product management decision?
- Are discrepancies in commissions affecting sales performance?
Most of the times, companies don’t even know there is a problem with their sales motivation scheme as it might be difficult to spot a failure. The right analysis tool wrapped with the right Key Performance Indicators, is able to highlight those failure and lead to a better decision making.