SPM or Sales Performance Management is the set of tools and processes that enable companies to better allocate and manage compensation and incentives for individual sales or channel personnel to achieve their sales targets. The appropriate territory allocation — and by keeping the sales team rightly trained and motivated — would keep the sales in line with the organization's objectives.
The information and tools of SPM help a sales team in various ways. Sales representatives are more accurate and efficient. The Sales Managers can make decisions faster, avoid surprises and have better control of the sales operation by directing the incentives and designing result-oriented programs.
An organization managing the commissions and compensation for the sales reps and the channel partner by traditional home grown methods tends to lose considerably. Most systems of this type are error prone and not as efficient. They lack the dynamism of having to adapt with the changing customer behaviour and sales management decisions. Sales strategies would help focus on the right resource, territory, channels etc. based on quota.
Accurate on-time reports enable the organization to monitor sales performance, which in turn can be used to analyze scenarios and make ammendments to the sales plans. The impact on the sales goals are very easily tracked.
Some of the feature it provides are :