Evaluating Sales force performance

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Evaluating Sales force performance

• Controlling Sales activities

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• Four steps that control the sales force
  activities are
• 1.Esatablishing Performance Standards.
• 2.Recording Performances
• 3.Evaluating Performance Standards
• 4.Taking Action
  

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Standards of Performance

• Setting standards of performance requires
  consideration of the nature of the Selling job.
• Setting performance Standards for a new business
  sales personnel requires different measures .
• Setting sales performance standards requires
  considerable market knowledge.

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• Performance Standards are designed to measure the
  performance of activities that the company
  considers most important.
• For e.g. Evaluating the job performance of a
  computer sales person requires standards that
  measure not only skill in new business selling
  but even more basically ,effectiveness as a
  management consultant skill as a system
  analyst.
• .

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• Sales Management puts together a combination of
  sales performance standards to fit the
  companys needs, its marketing situation, its
  selling strategy its sales organization

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Recording Actual Performance

• Sales management next task is to measure actual
  performance. There are two basic sources of
  performance information
• Sales expense records reports of various
  sorts.

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System of field sales reports

• The fundamental purpose of field sales reports is
  to provide control information.
• Field sales report provides Sales Management
  with a basis for discussion with sales
  personnel.
• Sales reports assist in determining how to secure
  more larger orders.
• A good field sales reporting system assists sales
  personnel in their self improvement programs.

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Purpose of field sales report.

• 1.To provide data for evaluating performance
• 2.To help the salesperson plan the work
• 3.To record customers suggestions complaints .
• 4.To gather information on competitors
  activities.

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• 5. To report changes in local business economic
  conditions.
• 6.To keep the mailing list updated for
  promotional catalogue materials.
• 7.To provide information requested by Marketing
  research.

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Types of sales force Reports

• 1.Progress or call report
• 2.Expense Report
• 3.Sales work plan
• 4.New business or potential new business report
• 5.Lost sales report.
• 6.Report of complaint.

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Evaluating

• Comparing actual performance with standards
• The most difficult step in sales force control is
  evaluation step- The comparing of actual
  performances with standards.
• The same standards cannot be applied to all Sales
  personnel.
• It is possible to take Territorial differences
  into account by setting individual performance
  standards for each territory.

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• Evaluating performance of sales personnel
  requires judgment deep understanding of market
  factors conditions.

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Controlling sales personnel

• Management also controls sales personnel through
  supervision.
• Who should supervise?
• Companies having decentralized sales organization
  sometimes assign the supervision responsibility
  to branch or district managers.