Enhance sales performance evaluation for procurement

How to create outlook signature

hello and welcome to Marketing 91.com sales performance meaning sales is a central factor or parameter in an organization's performance sales performance at the organizational level must be evaluated from different perspectives to identify drawbacks or shortfalls in the sales strategy supervision and control of Salesforce a Salesforce can be effectively managed only through proper supervision and control salespeople may have good caliber training and motivation nonetheless they require necessary Direction supervision and control for Optimum performance purpose of supervision and control supervision and control of the Salesforce are required for the four main reasons coordinating sales efforts guiding the Salesforce improving selling efficiency and evaluating performance methods of supervision and control methods for supervising and controlling Salesforce include allocation of sales territories and fixing sales quas more direct methods of control include reports and Records sales people must submit written reports on various aspects of their activities in prescribed formats 10 important reports are as follows Daily Calls by salespeople tour routes and plans customer complaints reasons for missing customer calls prospective customers market conditions position of major compe editors prices of competitive products effectiveness of sales promotion activities and salesperson's expense account direct supervisory methods telecommunications sales managers can use telephone email voic mail fax messages and computer-based support systems sales meetings sales managers use sales meeting to provide information about changes in policies and procedures arranging for training programs and Inspire or motivate salese to achieve sales quotas personal contacts sales managers may visit customers with a salesperson for reasons such as calling on a specific customer to handle a particular problem training a salesperson team selling efforts and obtaining Market information and lastly coaching sales managers must concentrate on the continuous development of a salesperson through supervisory feedback and role modeling coaching involves intensively training a salesp person on the job through instruction demonstration and practice indirect supervisory methods sales reports a salesperson's activities can be monitored and evaluated using a supervisory tool such as a sales report customer and competitor data included in the sales reports is used for the company's marketing information system compensation plans compensation is one of the most important tools that encourages salese to carry out activities that will maximize their income or commissions sales analysis by using a sales analysis report a sales manager can evaluate each salesperson's performance by comparing what was sold and how much was sold with the sales quotas expense accounts and reports expense reports indicate how much money a salesperson spends on traveling lodging meals and entertainment relative to company policies on various expenses this helps to control selling expenses sales performance evaluation criteria for evaluation it is essential to determine the right mix of performance criteria these criteria should focus on results and identify key result areas or kras kras are factors or aspects of a sales plan strategy and implementation in which a salesperson or a company must Excel to outperform competitors 12 important kras are given below sales approaches to appointments appointments to inquiries and proposals inquiries and proposals to sales orders to sales calls or strike rate sales revenue per order sales per hour of selling time sales to cost of sales gross profit or margin to sales call rate per account new accounts to existing accounts rate of Business Development new customers to new prospects actualization rate and sales to Market potential profitability criteria salesperson profit and loss account this measure of profitability expresses the total gross margin generated by a salesperson as a r ratio of his or her total sales during a particular period a more focused or direct measure of a salesperson's profitability is his or her profit or loss account for each major customer or product handled many salespeople realize that they incur costs and their efforts should result in some benefits combination of quantitative and qualitative criteria kras or quantitative indicators help to arrive at quantifiable results simultaneously qualitative evaluations though not strictly measurable are also important in fact quantitative and qualitative criteria are often interrelated for example a low or poor orders to sales called ratio is a quantitative evaluation measure however to understand or analyze this poor ratio qualitative measures such as a salesperson's product knowledge selling skill and customer relationships must be evaluated 12 major qualitative criteria categorized under four heads are mentioned below personal characteristics attitude initiative creativity and innovativeness and aggressiveness knowledge product knowledge market knowledge and knowledge of company policy and strategy skill which includes selling skill and communication skill and self-management planning ability judgment and decision-making ability time management by using these criteria a qualitative assess ment or evaluation is performed using a fivepoint rating scale such as 543 to1 or excellent very good good average and poor sales performance review a company's sales performance can be comparatively assessed in four different ways with different bases of comparison actual sales or total in relation to Target sales growth or decline relative to last year sales growth or decline in comparison to Industry growth decline sales level compared to that of major competitors Sales Management audit a Sales Management audit is a systematic Diagnostic and prescriptive tool for analyzing reviewing and controlling sales operations or the sales management process in financial or accounting audits all Financial transactions are checked in terms of company policy or approvals on the other hand a management or Sales Management audit aims to assess whether a firm's sales management process is adequate to to give direction for performance Improvement and to recommend the needs changed stay tuned for more videos on marketing thank you