Ssm lecture-19 (sales force evaluation)

Selling and Sales Management

1. 07/06/10 1
By :
Prof. Amit Kumar

2. 07/06/10 2
“A student pursuing management education from IILM-
Graduate School of Management, for example may find
himself or herself placed in a firm as a Sales Manager.
Our goal is to prepare the student for the exciting
challenges related to leading sales organizations in
today’s hyper-competitive global economy”.
IILM-GSM
Importance of this course
Selling & Sales Management

3. 07/06/10
IILM-GSM
Selling & Sales Management

4. 07/06/10
Contents
•Sales Force Evaluation Process
•Measures of Performance
–Quantitative Measures of Performance
–Qualitative Measures of Performance
•Salesperson Evaluation Matrix
IILM-GSM
Selling & Sales Management Sales Force Evaluation

5. 07/06/10
Sales Force Evaluation Process
Sales Force evaluation is the comparison of sales
force objectives with results.
•It begins with the setting of sales force objectives…
IILM-GSM
Selling & Sales Management Sales Force Evaluation

6. 07/06/10
Sales Force Evaluation Process
Sales Force evaluation is the comparison of sales
force objectives with results.
•It begins with the setting of sales force objectives which may
be financial, such as sales revenues, profits and expenses,
market-oriented or customer-based.
•Then sales strategy must be decide to show how the
objectives are to be achieved.
•Next performance standards should be set
•Results are then measured and compared with standards.
•At last, action taken to improve performance.
IILM-GSM
Selling & Sales Management Sales Force Evaluation

7. 07/06/10
Sales Force Evaluation Process
IILM-GSM
Selling & Sales Management Sales Force Evaluation
Set Sales force Objectives including:
Revenues
Profit Contribution
Customer Satisfaction
Customer Service
Expenses
Set Performance Standards for:
Company
Regions
Products
Salespeople
Accounts
Determine Sales Strategy
Measure results & compare with standards
Action Taken to Improve Performance

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Measures of Performance
1.Quantitative Measures of Performance
2.Qualitative Measures of Performance
IILM-GSM
Selling & Sales Management Sales Force Evaluation

9. 07/06/10
Quantitative Measures of Performance
Assessment using Quantitative Performance measures
falls into two groups:
•Specific output measures for individual salespeople
–Sales Revenue Achieved
–Profit Generated
–Sales Per Active / Potential Account
–No of Orders / Number of New Customers
•Specific input measures for individual salespeople
–No of Calls Made
–Calls Per Active Account
–No of Calls on Prospects
–Calls per Potential Account
IILM-GSM
Selling & Sales Management Sales Force Evaluation

10. 07/06/10
Quantitative Measures of Performance
Assessment using Quantitative Performance measures
falls into two groups:
•Specific output measures for individual salespeople
•Specific input measures for individual salespeople
•By combining output and input measures a number of
hybrid ratios can be determined. Example:
–Strike Rate ( No of Orders / No of Quotations )
–Sales Revenue per Call Ratio
–Prospecting Success Ratio
–Average Profit Contribution per Order (Profit Generated / No of
Orders)
–Order Call Ratio
IILM-GSM
Selling & Sales Management Sales Force Evaluation

11. 07/06/10
Quantitative Measures of Performance
All these ratios help to answer the following questions:
•Is the salesperson achieving a satisfactory level of sales?
•Is sales success reflected in profit achievements?
•Is salesperson devoting sufficient time to prospecting?
•Is time spent prospecting being rewarded by orders?
•Are calls being reflected in sales success?
•Does the salesperson appear to be making a satisfactory
number of calls per week?
IILM-GSM
Selling & Sales Management Sales Force Evaluation

12. 07/06/10
Qualitative Measures of Performance
The usual dimensions of Qualitative Measures:
1.Sales Skills
•Handling the opening and developing rapport, Quality of sales
presentation, ability to overcome objections, ability to close
2.Customer Relationships
3.Self-Organization
•Prepare Calls, Organize Unproductive Traveling, Conduct self-
analysis of performance in order to improve weaknesses
4.Product Knowledge
•Relative Strengths and Weaknesses between his or her own and
competitive offerings
5.Co-operation and Attitudes towards company & its products
•Respond to the objectives determined by management in order to
improve performance, e.g. increase prospecting rate.
IILM-GSM
Selling & Sales Management Sales Force Evaluation

13. 07/06/10
Sales Force Evaluation Matrix
IILM-GSM
Selling & Sales Management Sales Force Evaluation
- Praise
- Reward
- Promote
- Limited Praise
- Guide
- Train
- Discuss
- Train
- Punish
- Remove
- Limited Praise
- Advice
- Educate
Average
Bad
Good
Good Average Bad
Quantitatively Measured Results
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