In today’s B2B world, the pressure to hit and exceed quota is higher than ever. Sales leaders need to motivate their teams but also create strategies that deliver results. One of the key parts of that strategy is a sales performance improvement plan. When done well, it helps underperforming salespeople not just themselves but the whole team to be efficient, aligned to company goals, and grow sustainably.
Whether you have a small team of sales reps or a large sales organization, you need a structured and
actionable plan. This article will walk you through the steps to create a plan that hits quota, boosts
performance across the board, and keeps your team aligned to the most important B2B sales KPIs.
Why You Need a Sales Performance Improvement Plan
Before we get into the mechanics of creating a plan, let’s first understand why you need one. A sales
improvement plan is more than just a roadmap for underperformers – it’s a strategic tool to identify
performance gaps, optimize sales processes, and hold the team accountable.
Here are a few reasons why:
- Clear Expectations: It sets clear expectations for your team, with specific, measurable
goals. - Structured Feedback: It gives you a framework to give structured, actionable feedback.
- Growth: It’s not just about fixing problems but about continuous improvement.
- Consistency: It keeps your team working towards the same objectives.
- KPI Alignment: It ties individual performance to broader B2B sales KPIs – revenue
growth, conversion rates, customer retention.
Sales Performance Improvement Plan Components
To create a successful sales performance improvement plan you need to include several key components that
give clarity, accountability, and alignment to your organization’s goals.
1. Current Performance Assessment
Before you can create a plan, you need to know where your team is at. Start with a performance review for
each salesperson. Review metrics such as:
- Quota attainment: How consistently are they hitting their targets?
- Pipeline management: Are they managing their pipeline and closing deals?
- Conversion rates: What’s their success rate moving leads through the sales funnel?
- Customer relationships: How strong are their relationships with key accounts?
2. Clear, Measurable Goals
Once you’ve reviewed performance, the next step is to set clear, measurable goals. These goals should be:
- Specific: Vague goals like “improve sales” won’t cut it. Be specific, like “hit 15%
quota increase this quarter.” - Measurable: Define metrics to track progress. For example, “reduce sales cycle by 20
days.” - Achievable: The goals should be challenging but realistic. Setting unrealistic targets
will demotivate your team. - Relevant: Ensure the goals align with broader business goals and B2B sales KPIs.
- Time-bound: Set deadlines for when the goals need to be achieved.
3. Actionable Steps
Your sales performance improvement plan must include specific actions the team can take. These could be
around skills, processes, or new tools. For example:
- Training: If a salesperson is struggling to close deals, provide training on
negotiation techniques or objection handling. - Process Optimization: Review the sales process to identify bottlenecks. If sales reps
are spending too much time on admin tasks, consider automation tools. - Coaching: Regular one-on-one coaching sessions will keep reps focused on their goals
and get real-time feedback. - Tools and Technology: Invest in CRM tools or sales enablement platforms that provide
real-time data and insights so reps can make better decisions.
4. Accountability and Measurement
One of the biggest challenges in any sales improvement plan is accountability. You need to have a system to
track progress and hold reps accountable for their performance. This could be:
- Regular Check-ins: Schedule weekly or bi-weekly check-ins to review progress, address
issues, and adjust strategy if needed. - Performance Reviews: Formal performance reviews at the end of each quarter to measure
progress towards goals. - Incentives: Use incentives to motivate your team. Bonuses, recognition, or career
advancement opportunities.
5. Ongoing Feedback and Improvement
Improvement should be a continuous process. A successful sales performance improvement plan isn’t static – it
evolves based on feedback and the performance of the team. Encourage continuous improvement by:
- Asking for Feedback: Regularly ask your sales team for feedback on the plan. Are the
goals realistic? Are the strategies working? What are the challenges they’re facing? - Adapting the Plan: Be prepared to adjust the plan based on this feedback. If certain
strategies aren’t working, try something new. - Celebrating Wins: Don’t forget to celebrate along the way. Recognizing success will
keep your team motivated and engaged.
B2B Sales KPIs
A sales performance improvement plan should align with your overall business objectives and B2B sales KPIs. Some of
the key KPIs to measure are:
- Revenue Growth: The most obvious one, as it ties directly to quota attainment. Measure
total revenue and revenue growth over time. - Customer Acquisition Cost (CAC): The cost of acquiring new customers should be
reasonable compared to the lifetime value (LTV) of those customers. A good sales improvement plan can
reduce CAC by improving efficiency. - Lead Conversion Rate: How well are your sales reps converting leads into customers?
Improving this KPI can drive revenue growth. - Average Deal Size: Increase the average deal size and you don’t need more leads to
drive revenue growth. - Sales Cycle Length: A shorter sales cycle means your team is closing deals faster and
generating revenue sooner.
Common Mistakes and How to Avoid Them
Even with a good plan in place, there are common mistakes that can derail your efforts. Here’s how to avoid
them:
- Lack of Buy-in: If your sales team doesn’t buy into the plan, it won’t work. Involve
them in the planning process and make sure they understand the value of the plan. - Unrealistic Goals: While you need to challenge your team, setting goals that are too
high can lead to frustration and burnout. Make sure your goals are realistic and achievable. - Not Tracking Progress: Without regular measurement, you can’t know if the plan is
working. Use a CRM to track key metrics and have regular check-ins with your team. - Ignoring Feedback: Your sales team is on the front line and has valuable insights into
what’s working and what’s not. Make sure you’re asking for and acting on their feedback.
Summary
Creating a sales performance improvement plan is key to your team hitting or beating their sales quotas. By
setting goals, implementing strategies, and aligning with B2B sales KPIs, you can create a roadmap for
growth and success.
Remember, improvement is continuous. Monitor performance, adjust the plan as needed, and keep your team
engaged and motivated. With the right plan in place, your sales team will be set up for success for your
business.