Which sales force effectiveness ratios (see chapter 9) are likely to be affected by trends/changes in the direct selling channel? (30%)
Understand the Problem
The question is asking which sales force effectiveness ratios might be influenced by changes in the direct selling channel, as discussed in chapter 9 of the referenced material. It highlights an analytical approach to assess the performance of sales forces and seek specific ratios relevant to sales activities.
Answer
Ratios 1, 2, and 3 are likely affected by changes in direct selling.
The sales force effectiveness ratios that might be affected by trends or changes in the direct selling channel include Ratio 1 (Sales/Contacts with clients), Ratio 2 (Sales/Number of Potential Accounts), and Ratio 3 (Sales/Number of Active Accounts). These ratios depend on customer engagement and conversions, which are directly influenced by shifts in the direct selling environment.
Answer for screen readers
The sales force effectiveness ratios that might be affected by trends or changes in the direct selling channel include Ratio 1 (Sales/Contacts with clients), Ratio 2 (Sales/Number of Potential Accounts), and Ratio 3 (Sales/Number of Active Accounts). These ratios depend on customer engagement and conversions, which are directly influenced by shifts in the direct selling environment.
More Information
Direct selling can influence how often salespeople interact with potential clients, the number of potential accounts, and the conversion of these accounts into active ones due to changes in consumer preferences and market conditions.
Tips
A common mistake is not considering how changes in customer behavior impact all related effectiveness ratios.
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