Podcast
Questions and Answers
Which of the following is an output-related quantitative measure of performance for salesforce?
Which of the following is an output-related quantitative measure of performance for salesforce?
What is the primary objective of setting performance standards in the evaluation process?
What is the primary objective of setting performance standards in the evaluation process?
Which of the following indicates whether a salesperson is devoting sufficient time to prospecting?
Which of the following indicates whether a salesperson is devoting sufficient time to prospecting?
What does a high percentage of gross profit margin achieved by a salesperson suggest?
What does a high percentage of gross profit margin achieved by a salesperson suggest?
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Which of the following is NOT a typical quantitative measure used to evaluate the salesforce?
Which of the following is NOT a typical quantitative measure used to evaluate the salesforce?
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How can hybrid ratios be best utilized in the evaluation process?
How can hybrid ratios be best utilized in the evaluation process?
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Which question is relevant in assessing the effectiveness of calls made by a salesperson?
Which question is relevant in assessing the effectiveness of calls made by a salesperson?
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Which of the following actions might indicate that a salesperson is 'buying' sales?
Which of the following actions might indicate that a salesperson is 'buying' sales?
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What is the role of setting salesforce objectives in the evaluation process?
What is the role of setting salesforce objectives in the evaluation process?
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How can qualitative measures of performance be beneficial for evaluating a salesforce?
How can qualitative measures of performance be beneficial for evaluating a salesforce?
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Explain the significance of comparing measured results with performance standards in the evaluation process.
Explain the significance of comparing measured results with performance standards in the evaluation process.
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Identify two output-related quantitative measures of performance for salesforce evaluation.
Identify two output-related quantitative measures of performance for salesforce evaluation.
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What does a low number of calls made by a salesperson typically indicate in terms of their performance?
What does a low number of calls made by a salesperson typically indicate in terms of their performance?
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Discuss the importance of evaluating whether a salesperson is generating enough repeat calls on different customer categories.
Discuss the importance of evaluating whether a salesperson is generating enough repeat calls on different customer categories.
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How can analyzing the ratio of sales to new customers impact salesforce strategy?
How can analyzing the ratio of sales to new customers impact salesforce strategy?
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What does the combination of output and input measures in evaluation offer to sales managers?
What does the combination of output and input measures in evaluation offer to sales managers?
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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
- Output Related (measure success of sales activities)
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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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.
