How to Write a Sales Performance Review

by Alan Kirk; Updated September 26, 2017

When writing a sales performance review, the numbers are the key. You pay your sales team to make money for the company and expect them to make sales. They are judged by the number of sales they make and the clients they are able to retain. If an employee is unable to meet his goals as a salesperson, this must be noted in writing in the sales performance review, and ways to improve discussed along with consequences of failing to meet those goals. Do not forget to note the performances of your top performers in their reviews as well and make them feel appreciated.

Step 1

Determine your company's sales goals when establishing the goals for your sales team for the upcoming year. These goals should be reasonable and obtainable but challenging enough that they will require your team to put a significant effort into meeting them. These goals will help you determine the employees who are the top salespeople on your staff.

Step 2

Inform all of the sales employees on your team what the goals are for the upcoming time period. These goals should be conveyed to the individuals at the beginning of the period, and they should not be changed until the end of the period.

Step 3

At the end of the sales period, determine the amount of sales that each of your sales team members made. Rank each member, and determine what the overall average was in terms of sales volume for the period.

Step 4

Review the performance for the sales period with each individual salesperson. Note if that salesperson met the goal that was established at the beginning of the period. If she did, the salesperson should be given a positive review for meeting her goals on the sales performance review. If a salesperson finished in the top 10 percent of the entire sales team, label the individual as one of your top salespeople and reward her based on this accomplishment with a predetermined prize for the top individuals. Include in her written report her sales numbers for the quarter, your analysis of her performance, and any awards that were given to her for that sales period. Keep this performance review in her personnel record.

Step 5

With the team members who did not meet their goals, discuss the reasons that might have resulted in this failure. Make it clear to these individuals that it is necessary for them to meet your sales goals in the next sales period. Explain what the consequences will be for failure to meet goals for a specific number of sales periods in a row. This could result in the employee receiving a verbal or written warning or potentially being terminated, depending on his level of performance. Require that the salesperson sign this written analysis of his performance, acknowledging the consequences of failing to meet goals in future sales periods.

Step 6

Present the next sales period's goals to each member of your sales team during the individual sales performance reviews. Ask for each individual to initial a copy of the goals, and include that with the signed performance review.

Tips

  • Sales is a performance-based position. Sales performance reviews need to be written based on the level of production of the employees and not your personal feelings towards them. As an employer you need to maximize the money you spend on salary, and in sales it is maximized by the return in sales you get compared with the salary you pay out.

Warnings

  • Avoid making personal judgments about your sales individuals. Let the numbers speak for themselves, making it clear the goals must be met.

About the Author

Alan Kirk has been writing for online publications since 2006. He has more than 15 years' experience in catering, management and government relations. Kirk has a bachelor's degree in business management from the University of Maryland.