KRA of Sales Manager and How to track their performance

Key Takeaways:

Measuring sales managers’ work is very important for a company’s success.
Sales managers have many jobs like making sales plans and leading their team.
Companies must set clear goals for sales managers and check their progress.
Tracking sales data helps sales managers make good decisions and improve.
Regularly reviewing goals and giving feedback helps sales managers do better.

“Expect the best of yourself, and then do what is necessary to make it a reality.” Without measuring your performance, you cannot become the best – that’s the reality, especially for sales managers!

As a sales manager, your Key Responsibility Areas (KRAs) surround a wide range of critical tasks, from managing the sales team and devising effective strategies to meet and exceed sales targets to aligning your team’s efforts with the company’s overall sales objectives.

However, one of the primary issues that comes from not tracking KRAs is a need for more accountability. When sales managers don’t have specific, measurable targets to work towards, it becomes challenging to hold them responsible for their team’s performance.

This lack of accountability can lead to complacency, eventually impacting the organization’s revenue growth and overall sales objectives.

Therefore, in this blog, we’ll explore the nuances of monitoring the KRAs of sales managers, diving deep into the key performance indicators (KPIs) that align with the sales manager’s job description.

Key Roles and Responsibilities of a Sales Manager

A sales manager is a bone to any business – without sales, you cannot imagine your business growing. At the core of sales manager responsibilities, lies the effective management of the sales team, ensuring that each member is aligned with the company’s sales objectives and motivated to achieve their targets.

Here are 5 KRA of sales managers that you would want to master:

1) Sales Strategy Development and Implementation

One of the primary sales manager’s roles and responsibilities is to develop and implement sales strategies that drive revenue growth. This involves analysing market trends, identifying target customers, and crafting tailored sales approaches that resonate with the target audience.

Important Tip: You need to continuously monitor and adjust these strategies to adapt to changing market dynamics and customer preferences.

2) Talent Management and Team Leadership

It is another crucial aspect of the sales manager job description. This includes recruiting, training, and mentoring skilled salespeople, as well as fostering a collaborative and high-performing team culture.

Important Tip: Effective sales managers must possess strong leadership qualities, motivating their team members and providing them with the necessary sales tools and resources to succeed.

3) Performance Tracking and Analysis

Performance tracking and analysis are essential kra of sales managers. By setting clear and measurable goals, monitoring individual and team performance metrics, and providing constructive feedback, sales managers can identify areas for improvement and implement corrective actions.

Important Tip: Establish clear and measurable KPIs aligned with organisational goals to drive data-driven decision-making.

4) Client Relationship Management

Sales managers play a pivotal role in maintaining strong relationships with existing clients and identifying new business opportunities. This involves collaborating with cross-functional teams, such as marketing and product development, to ensure a cohesive and seamless customer experience.

Important Tip: Learn effective communication and negotiation skills – these are critical in this aspect of the sales manager’s roles and responsibilities.

5) Strategic Planning and Goal Setting

Aligning the sales team’s efforts with the organisation’s overall objectives is a KRA of sales managers. This includes setting achievable yet ambitious sales targets, developing comprehensive action plans, and continuously evaluating progress against established KRAs.

Important Tip: Set ambitious yet achievable targets and continuously monitor progress against the established KRA of sales manager to ensure alignment with organisational objectives.

7 Ways To Track Performance Of KRA Of Sales Manager

Now comes the part you have been looking for. While there are many other ways to track the KRA of sales managers – these are to be believed best ways.

1) Revenue Targets

Aligning with the sales manager responsibilities, achieving revenue targets is a crucial KRA of Sales Manager. This metric evaluates their ability to lead the team in meeting and exceeding predefined sales goals, a key aspect of the sales manager job description.

Example: Track monthly/quarterly/yearly sales figures against predefined revenue goals.

Important Tip: Break down revenue targets by product/service line, territory, or customer segment for fine analysis.

2) Sales Pipeline Management

Effective pipeline management is among the core sales manager roles and responsibilities. This KRA for sales managers involves monitoring lead generation, qualification, and conversion rates to ensure a consistent flow of prospects and closed deals.

Example: Monitor lead generation, qualification, and conversion rates at each pipeline stage.

Important Tip: Implement lead scoring and prioritisation to focus efforts on high-value opportunities.

3) Customer Acquisition and Retention

Acquiring new customers and retaining existing ones is a critical KRA of Sales Manager. This metric measures the sales manager’s ability to promote strong customer relationships, a key responsibility outlined in the sales manager job description.

Example: If the sales team acquired 75 new customers last quarter, but lost 20 existing customers, the customer acquisition rate would be 15% (75/500), and the churn rate would be 4% (20/500).

Important Tip: Gather customer feedback through surveys and sentiment analysis to identify areas for improvement.

4) Team Productivity

Optimising team productivity is a fundamental sales manager’s responsibility. This KRA of sales managers tracks individual and team performance metrics, enabling managers to identify areas for improvement and implement strategies to boost efficiency.

Example: If the sales team made 2,500 calls, had 300 meetings, and sent 150 proposals in a month, the sales manager can compare these figures against targets and identify top performers or areas for improvement.

Important Tip: Implement gamification and incentive programs to boost motivation and productivity.

Trusted by 30,000+ Users

Struggling to manage your leads? 🤔

Put an end to old-fashioned lead management and get started with smarter lead management today!

5) Sales Forecasting

Accuracy Accurate sales forecasting is a vital KRA of sales manager, as it aligns with the sales manager’s roles and responsibilities of strategic planning and resource allocation. This metric evaluates the manager’s ability to predict sales figures and make data-driven decisions.

Example: If the sales forecast for Q2 was $2 million, but the actual sales figure was $1.8 million, the forecasting accuracy would be 90%.

Important Tip: Leverage historical data and predictive analytics to improve forecasting accuracy.

6) Sales Training and Coaching

Developing and coaching the sales team is a core sales manager responsibility. This KRA for sales manager assesses the effectiveness of training programs and coaching initiatives, contributing to the team’s overall success.

Example: If the average pre-training assessment score for the sales team was 70%, and the post-training score improved to 85%, the sales manager can quantify the effectiveness of the training program.

Important Tip: Incorporate role-playing, coaching sessions, and real-time feedback for continuous skill development.

7) Market and Competitive Intelligence

Staying informed about market trends and competitor strategies is a crucial KRA of Sales Manager. This metric aligns with the sales manager job description of identifying opportunities and adapting sales strategies accordingly.

Example: If a competitor launches a new product with a disruptive pricing model, the sales manager responsibility is to analyse its potential impact on the company’s market share and adjust sales strategies accordingly.

Important Tip: Leverage social media, industry publications, and customer feedback to gather market intelligence.

Tracking Your Sales Manager’s Performance Basis Defined KRA

Establishing clear Key Responsibility Areas (KRAs) is essential for effectively measuring and evaluating a sales manager’s performance. These KRA of sales managers should be specific, measurable, and aligned with the organization’s overall sales objectives.

Once the KRA of sales managers is defined, implementing a systematic approach to tracking and monitoring progress becomes crucial.

1) Implement Performance Tracking Tools

Leverage performance tracking tools, such as Customer Relationship Management (CRM) systems, sales dashboards, and reporting tools, to consistently monitor and analyze KPI data. These tools provide real-time visibility into performance metrics, enabling sales managers to identify areas of strength and weakness promptly.

2) Conduct Regular Performance Reviews

Schedule regular performance review sessions with the sales manager to discuss their progress against the defined KRAs and KPIs. These meetings should be data-driven, focusing on objective performance metrics rather than subjective assessments.

3) Provide Constructive Feedback and Coaching

Based on the performance data and review discussions, provide the sales manager with constructive feedback and coaching. Highlight areas where they excel and offer guidance and support to address any performance shortcomings. Encourage open communication and foster a culture of continuous improvement.

4) Adjust and Optimise KRAs and KPIs

Regularly review and refine the defined KRA of sales manager and KPIs to ensure they remain relevant and aligned with evolving business objectives. As the sales landscape changes, the performance metrics may need to be adjusted to reflect new priorities or shifting market conditions.

Take your telecalling team to the next level

Empower your telecallers with NeoDove, download our handy guide today!

Conclusion

Lastly, effectively tracking and monitoring the(Key Responsibility Areas) KRA of sales managers is paramount for driving success. By establishing clear performance metrics aligned with the sales manager’s job description, organisations can cultivate accountability, pinpoint areas for improvement, and provide targeted support to elevate overall sales effectiveness.

The KRAs of sales managers contain a wide array of responsibilities, from strategy development to talent management and client relationship building.

Our advice is consistently tracking these KRAs and their associated KPIs empowers sales managers to make data-driven decisions, optimise processes, and align their team’s efforts with organisational objectives.

7 Unique Instagram Marketing Tips: An Ultimate Guide

Explore more

8 Facebook Marketing Strategies To Grow Your Business

Explore more

LinkedIn Marketing -An Easy Guide to Increase Sales

Explore more

How To Generate High-Quality Leads With Facebook Ads

Explore more

Google Ads Lead Generation – 6-Step Framework For High-Quality Leads

Explore more

NeoDove is a complete telecalling CRM that helps small and medium businesses achieve higher revenue growth by enhancing the productivity of their telecalling team.

Connect with us on Social

Company

Features

Other Products

Industries

For sales-queries, contact us at:

Resources

Integration

Follow NeoDove for more updates

KRA of Sales Manager and How to track their performance

Key Roles and Responsibilities of a Sales Manager