Performance improvement plans, or PIPs, for sales sound dreadful, but they can be a great opportunity for sales reps to pull themselves together and compete with their successful counterparts.
But what makes for an effective PIP for sales?
This article covers the basics of a sales PIP and how to implement one using a template and example.
A sales PIP helps managers and sales leaders ensure sales reps’ performances improve over time by outlining their steps to reach the desired goals.
A comprehensive plan is essential for addressing quantifiable performance issues, such as decreased sales volume, lower conversion rates, or extended sales cycles, and ensuring responsible individuals can sharpen their skills and succeed.
Below are the key elements that go into a tailored sales PIP:
An effective PIP format for sales must include SMART objectives that are very specific, clear, and measurable.
So ensure your PIP is made of the following objectives:
For example, if some of your sales reps have a barely 1% below-average conversion rate, your plan can include customized training about qualifying leads and educating them about the product. The objective can be to “increase your conversion rate to 3% by August 30.”
Set a timeline for improving sales performance. Doing so can also improve their time management skills.
Remember to include potential consequences if the timeline is not followed so sales reps understand the seriousness of adhering to a PIP.
Run bi-weekly check-ins to monitor timeline progress and identify potential sales performance gaps.
A PIP offers a well-structured format for sales managers to proactively acknowledge their team members’ underperformance and address challenges.
This way, you prevent a further decline in sales performance and catch potential gaps before they cause problems to escalate and impact the overall business objective.
Identify the top sales training programs or resources to support each sales rep's performance improvement journeys.
You could also make room for peer support and individual mentoring, as some sales reps may find it easier to learn from their colleagues.
When creating a sales PIP, it is essential to consider the specific objectives you want your sales reps to achieve. You can also include personalized strategies and supportive resources they need to hit targets.
Before this, it’s best to give sales reps a verbal and written warning:
Set up a meeting with the sales team to discuss the nature and degree of sales performance issues. Managers can provide examples of when and where the issues occurred and the actions needed to address them. Team members can provide additional details to explain the issues further.
Verbal warnings with the above details must be documented with the sales rep’s input and added to their files.
A written warning follows a verbal warning to reiterate the importance of the sales PIP. It can include the necessary actions to improve the issues, a timeline to correct them, and the potential consequences if no improvement is noticed.
Written warnings can last 30, 60, or 90-day days, depending on the issue's complexity.
The final sales PIP should be approved by managers, sales reps, and HR. It can be delivered during the sales rep or manager discussions or alongside the written warning.
While creating the final piece of the sales PIP, ensure you’ve included the following key sections:
Check out our sales PIP template and examples after the following section.
Here’s what goes into implementing a sales PIP successfully:
Although sales reps are responsible for their performance and improvement, it doesn’t mean they have to do it independently. Working as a team and staying updated with your reps’ progress lets you identify if they’re stuck and need more help.
And the only way to make this happen is through regular check-ins and follow-up meetings.
Schedule weekly or bi-monthly meetings to discuss progress, address roadblocks, and adjust the plan accordingly. This ongoing support is crucial to maintain motivation and ensure the PIP stays on track.
Feedback is a huge part of implementing a sales PIP. Offer actionable and constructive feedback to your salespeople. Highlight problem areas where improvement is needed and provide the resources and timely guidance.
Feedback can also be two-way.
Establish a feedback loop where you collect sales rep inputs about the effectiveness of the sales PIP and use their insights to amend document improvements.
You’ve set very specific sales performance goals while creating the PIP. Data and metrics are the only way to track their progress and identify success or failure areas.
For example, if a sales rep’s assigned goal was to improve their below-average conversion rates, then the performance metrics for sales you must track while implementing the PIP are:
While implementing a sales PIP, you may realize it can benefit not just individual sales rep performance but also your team’s. This flexibility makes sales PIPs adaptable and scalable.
However, when implementing a team-wise PIP, ensure the set SMART objectives can also feed into group goals.
You can adapt the following sales PIP template and example for your own use case:
Employee details:
[Salesperson name]
[Salesperson role/title in the company]
[Department/project name]
[Date]
Reason for assigning an improvement plan:
This performance improvement plan defines some issues we noticed while evaluating your capabilities. The plan will help clarify our expectations of the role and allow you to address these concerns.
Performance Issues: List specific performance issues that need improvement
Performance Goals: Outline SMART goals for sales performance improvement.
Goal #1: Mention a SMART goal
Goal #2: Mention a SMART goal
Goal #3: Mention a SMART goal
We are confident you’ll meet our expectations and improve your performance within the specified time frames.
However, if you are unable to meet [expectation] by [deadline], you will be subject to [action].
[Signatures]
[Date]
Mark Wilson
Senior Account Executive
Sales - ProductX
July 8, 2024
Reason for assigning an improvement plan:
This performance improvement plan defines some issues we noticed while evaluating your capabilities. The plan will help clarify our expectations of the role and give you a clear roadmap and an opportunity to address these concerns so you remain in good standing at XYZ company.
Performance Issues:
Performance Goals:
Goal #1: Maintain a 40% or above customer retention rate by committing to three hours of daily follow-ups and customer engagement.
Milestone—30 days
Goal #2: Secure at least 5 weekly lead appointments by assigning time to phone calls and email follow-ups.
Milestone—30 days
Goal #3: Showcase product knowledge by learning about the product in and out and requesting mentorship from your fellow senior colleagues.
Milestone—30 days
We are confident you’ll meet our expectations and improve your performance within the specified time frames.
However, if you cannot meet the above three mandatory objectives by 09/15/2024, you will be subject to reassignment to a lower position or other serious actions, such as termination of employment.
[Signatures]
[Date]
Here are some tips and sales PIP best practices for smoother implementation:
Communicating the idea behind implementing a sales PIP for the employee is essential. For instance, clarifying that the sales rep is a highly valued resource for the company, hence the investment to support their performance improvement.
Ensure you document every aspect of the PIP, such as communications, performance metrics, progress updates, feedback, milestones, etc. Doing so protects the company and yourself from potential legal issues.
A sales PIP is not an ongoing process and must have an endpoint. A lack of a solid deadline impacts the seriousness of the plan and does not push sales reps to jump on the urgency
Overseeing a sales PIP can become overwhelming for a manager, as you try not to demoralize sales reps while getting them to perform their best.
And a big part of sales PIP implementation is mentorship. That’s when technology like AI can help support your sales reps and bring them up to speed.
Docket is an AI-powered sales assistant that quickly answers sales rep queries by learning from 100+ of your internal sources. It fills up knowledge gaps and accelerates the sales cycle.
