Sales teams are responsible for converting the company’s target audience into paying customers. They communicate and tell the potential customer why they need a specific product or service in their life. Without a strong sales team in place, sales and ultimately profits will decline. So, how can managers and business owners improve the performance of their sales teams?

Pay Commission

How are your sales team members being paid? The Bureau of Labor Statistics (BLS) reports that there are several ways to compensate members of a sales team, including salary, hourly, commission, or even salary plus commission. Traditionally, however, salespersons who are paid commission outperform those who are paid hourly and salary.

Opting to pay your sales team members commission gives them an incentive to generate more sales, because the more sales they generate, the more money they earn. A commission payment model also creates a competitive environment between the different salespersons within the company, as they each compete with another in hopes of making a sale.

Positive Reinforcement

You’ll want to focus on creating a positive mood/environment with your sales team to encourage better performance. Numerous studies have shown positive reinforcement to yield higher performance among workers. Refrain from scolding, belittling, or otherwise expressing negativity towards sales team members.

Set Goals

Every company should have both short and long-term goals, but it’s especially important for companies that revolve around sales. Place a number up on the board and let your sales team members try to reach it. When there’s a clear objective in the form of X amount of sales, teams will have a stronger drive and determination to reach it. And once they’ve successfully reached the goal, bump it up even higher for next month or fiscal period.

As we revealed in a previous blog post, a recent Staples survey found that 80% of companies did not set goals. If your company falls into this category, your sales could slump as a result. Lack of goals creates confusion among salespeople, which ends up hurting the company as a whole. The bottom line is that all sales-oriented companies should set short and long-term goals.

Be a Leader

Sales teams need a stronger leading figure to succeed. Don’t be afraid to step in and personally encourage members of your sales team, congratulating them when they make a sale and offering assistance when they need it.