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How to Measure Sales Performance

How to Measure Sales Performance

March 11, 2022
Measure Sales Performance

It’s a pretty common saying that sales are the lifeblood of an organization. That’s why it’s essential for you to always keep an eye on your sales figures to ensure that you can accurately measure your organization’s performance. However, many people don’t know the best way to measure sales performance. 

One of the most effective ways of measuring sales performance is by employing gamification in the organization. A manager can accurately measure sales information and identify their best-performing employees through gamification. Not only that, they can effectively identify what key players are contributing the most to the organization’s sales performance. Here’s everything that you need to learn about sales gamification and the benefits that it’ll provide your organization. 

What Is Sales Gamification? 

Sales gamification refers to the process of incorporating gamification into the organization’s sales operations. Gamification is essentially using game design mechanics in different settings to help measure and improve performance while simultaneously improving motivation. 

Several different game design mechanics translate over to business operations very well. Some of the most popular gamification mechanics include points, leaderboards, and a reward system. However, organizations can see the clear impact that gamification can have on performance even by incorporating these basic principles. 

Here’s a basic description of some of the core principles of gamification:

Points 

One of the most basic game design elements that translate exceptionally well into business operations, especially sales, is appointing a points system. You can set up a system that rewards points upon successfully completing a particular task. 

The points system works particularly well with sales because it can easily quantify how many points to award. Assigning points also make it easy to identify how many sales a particular employee makes during a certain period. 

Through the use of gamification, not only will you be able to improve your sales performance, but you’ll also be able to measure everything and stay on top of your goals. 

While sales goals on their own might seem very daunting, they’ll start to become much more attainable by converting them into points. 

Leaderboards

One of the main reasons gamification is so popular among organizations is that it helps generate a healthy sense of competition. Most experienced sales managers will let you know that competition among team members can help drive sales up exceptionally. 

A leaderboard is something that you find in many different games, and it works a treat in helping keep players engaged. Applying the same principle to business operations can ensure that team members retain a high level of engagement and provide high-quality work. 

The leaderboard provides you with a great deal of flexibility as well. For example, you can decide when you’ll update the leaderboard to reflect the new score. One of the most popular choices is to use a real-time leaderboard. As soon as someone changes position on the leaderboard, it’ll immediately reflect the change and display the new rankings. 

Rewards

While it might seem very simple, one of the easiest ways to motivate your team members is by presenting them with adequate rewards. In conjunction with the points system, you can use the reward mechanic to create a fair way to distribute rewards between your employees. 

Ideally, you should set up a tier for rewards. For example, for a basic number of points, you could provide your employees with an extra day off or a complimentary lunch on one day. On the other hand, you should provide better rewards for larger point totals. 

The better the rewards, the more your team members are going to push to accumulate as many points as possible. So instead of tangible rewards, you can also mix in achievement badges. These will indicate key achievements that a team member manages to make. 

With various achievements that you could offer employees, there are plenty of diverse ways to showcase their skills. These achievement badges can also serve as a means for the organization to identify which employees excel at performing a particular type of task. 

Aside from motivating and improving employee performance, gamification plays a major role in helping measure sales as well. 

Why Is It Important To Measure Sales?

Many people from the traditional sales world won’t be able to understand all the fuss about why it’s important to measure sales. They are more likely to rely on their intuition and gut instinct to generate the highest number of leads. It can be challenging for individuals with decades worth of sales experience to ask them to move away from the formula that they know best. 

That’s why it is so essential to implement certain behaviors to help change the way that a sales team functions. For example, without the ability to properly measure sales performance, it can become incredibly challenging to quantify goals. If the organization can’t quantify its goals properly, meeting its targets will become almost impossible. 

Aside from that, being able to measure sales performance can give you an effective way of determining whether or not the resources that you’re putting into the business are being put to good use. No business owners want to continue investing in a business that doesn’t end up providing an adequate return. In addition, without being able to properly measure sales performance, it’ll become exceedingly difficult for the sales team to identify areas where they must improve. 

Through the use of gamification, modern organizations have the ability to quantifiably measure which particular employees are performing the best. That way, it’ll let the managers effectively identify what areas they need to train team members that aren’t performing the best. 

By focusing on measuring individual goals and team goals as well, organizations can make the best use of sales gamification to optimize their sales team’s performance. While it might be clear that there are benefits to adopting a gamification strategy and working to implement it in your organization, there are still a few changes. 

Behavioral Gamification 

Before an organization can successfully adopt gamification, there are certain behaviors that they need to address to ensure a smooth integration. For example, suppose your organization isn’t the most comfortable with using new types of technology. In that case, it might be really difficult if you adopt a complete gamification system immediately. 

The best way to proceed in this situation is by slowing down the entire process and taking a significant amount of time to slowly introduce gamification into the workplace. One of the most important behavioral changes that you need to incorporate is using clear communication. 

It is a good idea to clearly communicate to your employees the vision that you see for the organization after implementing a gamification strategy. Then, after the initial introduction to the concept, managers can start hosting training sessions to further familiarize employees with the idea. 

While you’re trying to properly integrate the strategy into your operations, it is essential to not end up overdoing your behavioral efforts. When someone’s been acting in the same manner for a long amount of time, it can become exceedingly difficult to convince them to change their behavior. That’s why it’s essential to take everything slowly and not lose patience if you don’t see results immediately at the start. 

Conclusion 

After effectively measuring the performance of your sales team, there are many different directions that you can take to help them progress. One of the most effective ways of both measuring and improving your sales team performance is by implementing gamification. 

Gamification is a strategy that involves the use of implementing different game design mechanics to help improve employee performance and motivation. Through the proper implementation of gamification, organizations can take a step forward in the modern world and optimize their operations. 

If you are looking to invest in a new strategy for your sales team, gamification is definitely the way to go!

References:

https://www.spinxdigital.com/blog/incorporate-gamification/

https://www.pipedrive.com/en/blog/measure-track-entire-sales-teams-performance

https://www.xactlycorp.com/blog/measuring-sales-performance-fully-completely

https://blog.hubspot.com/sales/sales-performance-metrics

Jacob Kinsman

Business Operations Manager, Harcourts Real Estate 

If your team works from multiple locations. Any of your team work from home, if you’re looking for ways to reward success and to hold a mirror up to salespeople business, get Spinify.

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Put those insights into practice.

Set your team up for success by improving their performance through gamification.