Measuring sales performance

Javier Marcos, Monica Franco and Peter Kerr
Cranfield School of Management

Javier Marcos, Monica Franco and Peter Kerr from Cranfield School of Management explore why focusing solely on financial indicators isn't the best way to judge performance, and how setting unrealistic targets is demotivating.

Most companies that have sales functions have sales performance measurement systems in place. The types of sales performance measures depend on the nature of a firm's sales processes and internal requirements. The selection of sales measures also hinge on the maturity of a firm's CRM systems and sales automation solutions that enable the collection, analysis and exploitation of its performance data. What only a few organisations realise is that the complexities of sales performance measures go beyond the difficulty of gathering and reporting of data. A number of factors make measuring sales performance problematic.

The challenge of sale performance measures