Δευτέρα 6 Φεβρουαρίου 2012

Measuring Sales Performance

Most companies have the problem of measuring the performance of their sales staff because each salesperson is different and they work in varied methods. Because a sale involves customers, there are other factors impacting sales, as well. Customers and their needs are different, business conditions vary, individual customer bases differ and the product mix offered to each customer can vary. 

What are the important components to track to determine sales success? The factors can be tangible and intangible. When examining the tangible side of the sales ledger you need to consider methods for targeting, frequency of contact, message and presentation, and communications. Some intangible factors that can be difficult to quantify are the salesperson's ability to build relationships and "connect" with customers, and whether or not there is a clear purpose of the call or meeting. The reason for contact can be to help the customer, or sometimes it is to help the salesperson's quota.
Effective results from measuring the performance of each salesperson should have a purpose: to help them be more profitable to your company. When this occurs they have more worth through additional pay and incentives, and they receive a value, and that is a good feeling about doing a great job. There are three steps in bringing about the improvement of an employee when a problem is identified: measuring, correcting with training, and planning to make the change permanent.

Measuring the Performance

The ability to measure performance depends on the use of success-based criteria as a model to compare daily, weekly and monthly numbers. Here are some of the criteria that Sales Creators uses when designing a monitoring system for their customers:
      1. Time spent selling, time spent in administration, time prospecting
      2. Number of calls made on existing accounts
      3. Number of calls made to new customers, and number of new customers
      4. Promptness in submitting reports and sales orders and accuracy of reports
      5. Volume of sales, number, size, product mix and repeat account
      6. Accuracy in quoting prices and delivery information with approved margins to customer
      7. Method of call backs set up with the customer
      8. Cost of customer to company
      9. Marketing and promotional time, specific areas
      10. Improvement areas where time is being invested on the part of the salesperson and management; this includes topics such as behavior modification, appearance, schooling and other personal issues
Measuring must start with standards that are compiled from the averages of all employees who are doing the same task. Then review the progress for the last 12 months and determine how it compares to the budget compliance standards. If the performance levels do not meet the basic standards set by the company, or if their performance falls more than 10 percent from last year's numbers then it is time to move into a corrective step of action. 

Training and Process for Correction

This is a positive step for improvement and it starts with management reevaluating the sales and marketing systems. Is there a need to increase promotional campaigns, change or add prospecting methods, establish tighter controls with price variances, or get input to problems from the sales staff? Management's first duty means time spent working on fixing the systems; then it is time to provide help for the salesperson. They should have daily direction and support, be provided with proper coaching by role-playing on specific areas of weakness found in the 'measuring performance' section. Make mentoring time available with best salesperson and the salesperson that needs help and have them observe and listen to their instructor. Daily progress must be recognized and acknowledged until the problem is resolved by noticeable improvement in a given area.

Planning for a Positive Change

Once a problem has been found, management must help get it corrected. Once it has been corrected it is time to outline an agreement to reach the stated goals. Planning in its final form should be in writing with the steps needed to reach the final destination. Then the time must be allotted to put management's system changes into effect by introducing them to the employees at a meeting. 

www.salescreators.com 

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