Evaluating a Salesperson

1
Chapter
16
Evaluating a Salespersons Performance
Why should our endeavor be so loved, and the
performance so loathed? William Shakespeare
2
Procedure for Evaluating Salespeople(Fig. 16-1)
1. Establish basic policies
2. Select evaluation bases
3. Set performance standards
4. Compare performances standards
5. Discuss results with salespeople
3
Output Factors Used as Evaluation Bases (Fig.
16-2)

• Sales volume
• In dollars and in units
• By products and customers (or customer groups)
• By mail, telephone, and personal sales calls
• Sales volume as a percentage of
• Quota
• Market potential (i.e., market share)
• Gross margin by product line, customer group, and
  order size
• Orders
• Number of orders
• Average size (dollar volume) of order
• Batting average (orders / calls)
• Number of canceled orders
• Accounts
• Percentage of accounts sold
• Number of new accounts
• Number of lost accounts
• Number of accounts with overdue payment

4
Quantitative Input Factors Used as Evaluation
Bases (Fig. 16-3)

• Calls per day (call rate)
• Days worked
• Selling time versus nonselling time
• Direct selling expense
• In total
• As percentage of sales volume
• As percentage of quota
• Nonselling activities
• Advertising displays set up
• E-mails/letters written to prospects
• Telephone calls made to prospects
• Number of meetings held with dealers and/or
  distributors
• Collections made
• Number of customer complaints received

5
Qualitative Input Factors Used as Evaluation
Bases (Fig. 16-4)

• Personal efforts of the sales reps
• Management of their time
• Planning and preparation for calls
• Quality of sales presentations
• Ability to handle objections and to close sales
• Knowledge
• Product
• Company and company policies
• Competitors products and strategies
• Customers
• Customer relations
• Personal appearance and health
• Personality and attitudinal factors
• Cooperativeness
• Resourcefulness
• Acceptance of responsibility
• Ability to analyze logically and make decisions

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Ratio Measures
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A Behaviorally Anchored Rating Scale for
Evaluating Team Participation (Fig. 16-5)
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Evaluation of Sales Reps Performance(Fig. 16-6)
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Evaluation of Sales Reps Performance(Fig.
16-6)(continued)