Sales Performance Evaluation Techniques
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Questions and Answers

Which of the following is an output-related quantitative measure of performance for salesforce?

  • Number of quotations
  • Sales revenue achieved (correct)
  • Calls per active account
  • Number of calls made

    • What is the primary objective of setting performance standards in the evaluation process?

  • To evaluate employee satisfaction
  • To establish market share goals
  • To determine the number of calls to be made
  • To measure results and compare with standards (correct)

    • Which of the following indicates whether a salesperson is devoting sufficient time to prospecting?

  • Sales per potential account
  • Calls being reflected in sales success
  • Number of new customers
  • Time spent prospecting being rewarded by orders (correct)

    • What does a high percentage of gross profit margin achieved by a salesperson suggest?

    <p>Sales success is likely reflected in profit achievement</p> Signup and view all the answers

    Which of the following is NOT a typical quantitative measure used to evaluate the salesforce?

    <p>Customer satisfaction levels</p> Signup and view all the answers

    How can hybrid ratios be best utilized in the evaluation process?

    <p>To get a balance between output and input measures</p> Signup and view all the answers

    Which question is relevant in assessing the effectiveness of calls made by a salesperson?

    <p>Are they making enough repeat calls on different customer categories?</p> Signup and view all the answers

    Which of the following actions might indicate that a salesperson is 'buying' sales?

    <p>Excessive discounts being offered</p> Signup and view all the answers

    What is the role of setting salesforce objectives in the evaluation process?

    <p>Setting salesforce objectives helps align the sales activities with the company's goals, ensuring accountability and providing a benchmark for performance measurement.</p> Signup and view all the answers

    How can qualitative measures of performance be beneficial for evaluating a salesforce?

    <p>Qualitative measures provide insights into salesperson behaviors, customer relationships, and overall effectiveness that may not be captured through quantitative metrics alone.</p> Signup and view all the answers

    Explain the significance of comparing measured results with performance standards in the evaluation process.

    <p>Comparing measured results with performance standards reveals gaps in performance and identifies areas needing improvement to achieve set objectives.</p> Signup and view all the answers

    Identify two output-related quantitative measures of performance for salesforce evaluation.

    <p>Sales revenue achieved and number of new customers are two key output-related quantitative measures.</p> Signup and view all the answers

    What does a low number of calls made by a salesperson typically indicate in terms of their performance?

    <p>A low number of calls may suggest inadequate prospecting efforts, potentially leading to missed sales opportunities.</p> Signup and view all the answers

    Discuss the importance of evaluating whether a salesperson is generating enough repeat calls on different customer categories.

    <p>Evaluating repeat calls is essential as it indicates the salesperson's ability to nurture relationships and drive customer loyalty across various segments.</p> Signup and view all the answers

    How can analyzing the ratio of sales to new customers impact salesforce strategy?

    <p>Analyzing this ratio helps determine the effectiveness of customer acquisition efforts and may reveal the need for adjustments in marketing or sales tactics.</p> Signup and view all the answers

    What does the combination of output and input measures in evaluation offer to sales managers?

    <p>Combining output and input measures provides a comprehensive view of salesforce performance, allowing managers to assess productivity and effectiveness simultaneously.</p> Signup and view all the answers

    Study Notes

    Purposes of Evaluation

    • Evaluate sales force performance to make improvements
    • Identify areas for improvement
    • Determine the effectiveness of sales strategies
    • Ensure sales goals are aligned with company objectives

    Evaluation Process

    • Set salesforce objectives:
      • Profit
      • Revenues
      • Market share
      • Customer satisfaction
      • Customer service
      • Customer expenses
    • Determine sales strategy
    • Set performance standards:
      • Company
      • Region
      • Products
      • Salespeople
      • Accounts
    • Measure results and compare with standard:
      • Identify areas where performance exceeds or falls short of set standards
    • Action taken to improve performance:
      • Implement strategies and adjustments to address underperformance or enhance existing strategies
    • Quantitative Measures of Performance
      • Output Related (measure success of sales activities)
        • Sales revenue achieved
        • Profits generated
        • Percentage gross profit margin achieved
        • Sales per potential account
        • Sales per active account
        • Sales revenue as a percentage of sales potential
        • Number of orders
        • Sales to new customers
        • Number of new customers
      • Input Related (measure effort and resources)
        • Number of calls made
        • Calls per potential account
        • Calls per active account
        • Number of quotations (can be an output measure as well)
        • Number of calls on prospects
      • Hybrid Ratios (combine output and input for a comprehensive assessment)
        • Utilize ratios to answer questions about salesperson effectiveness
        • Determine if a salesperson is achieving satisfactory sales levels
        • Analyze profit achievement in relation to sales success
        • Identify if a salesperson is giving excessive discounts
        • Assess if the salesperson is devoting enough time to prospecting
        • Evaluate if prospecting efforts are resulting in orders
        • Determine if a salesperson is making enough calls per week
        • Analyze the frequency of calls across different customer categories
        • Determine if calls are being made to low-potential customers
        • Assess if calls are leading to sales success
        • Analyze the relationship between quotations and orders
        • Identify how sales are being achieved (large number of small orders or a few large orders)
        • Evaluate if the profit generated per order justifies calling upon the account

    Purposes of Evaluation

    • Determine if salesforce is meeting objectives
    • Identify areas for improvement
    • Justify salesforce budget and resources

    Evaluation Process

    • Set salesforce objectives: Include profit, revenues, market share, customer satisfaction, customer expenses, and customer service.
    • Determine sales strategy: Outline sales goals and target markets
    • Set performance standards: Establish clear expectations for company, region, products, salespeople and accounts.
    • Measure results and compare with standard: Track performance metrics and analyze data to identify deviations.
    • Action taken to improve performance: Implement corrective actions to address inefficiencies.

    Quantitative Measures of Performance

    • Output Related:
      • Sales revenue achieved
      • Profits generated
      • Percentage gross profit margin achieved
      • Sales per potential account
      • Sales per active account
      • Sales revenue as a percentage of sales potential
      • Number of orders
      • Sales to new customers
      • Number of new customers
    • Input Related:
      • Number of calls made
      • Calls per potential account
      • Calls per active account
      • Number of quotations
      • Number of calls on prospects
    • Hybrid Ratios: Combine output and input metrics

    Ratios Can Be Used To Get Answers

    • Is the salesperson achieving a satisfactory level of sales?
    • Is sales success reflected in profit achievement?
    • Is the salesperson ‘buying’ sales by giving excessive discounts?
    • Is the salesperson devoting sufficient time to prospecting?
    • Is time spent prospecting being rewarded by orders?
    • Does the salesperson appear to be making a satisfactory number of calls per week?
    • Are they making enough repeat calls on different customer categories?
    • Are they making too many calls on low-potential customers?
    • Are calls being reflected in sales success?
    • Is the number of quotations being made reflected in orders taken?
    • How are sales being achieved – a large number of small orders or a few large orders?
    • Are the profits generated per order sufficient to justify calling upon the account?

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    Related Documents

    Lecture 10: Salesforce Evaluation PDF

    Description

    Explore the essential evaluation techniques for assessing sales force performance. This quiz covers objectives, strategies, performance standards, and quantitative measures that ensure alignment with company goals. Test your understanding of the evaluation process used to improve sales effectiveness.

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