Preview 1: Salesforce Evaluation Definition & Process 2: The Purpose of Evaluation 3: Setting Standards of Performance 4: Gathering Information 5: Measures of Performance Salesforce Evaluation Salesforce evaluation is the comparison of salesforce objectives with results. Salesforce Evaluation Process 1 2 3 4 5 • Set salesforce objectives including: Revenues Profit contribution Market share Customer service Expenses • Determine sales strategy • Set performance standards for: Company Regions Salespeople Accounts • Measure results and compare with standard • Action taken to improve performance The Purpose of Evaluation • The prime reason for evaluation is to attempt to attain company objectives. • Evaluation is an important ingredient in an effective training program. • Evaluation provides information that affects key decision areas within the sales management function. Setting Standards of Performance For the sales team as a whole, the sales budget will be the standard against which actual performance will be evaluated. Gathering Information THE INDIVIDUAL SALESPERSON WILL PROVIDE MUCH OF THE INFORMATION UPON WHICH EVALUATION WILL TAKE PLACE. Measures of Performance Quantitative Measures of Performance Qualitative Measures of Performance • Input measures (Behavioral) • Sales skills. • Output measures (Sales and Profit Performance) • Customer relationships. • Self-organization. • Product knowledge. • Co-operation and attitudes. Measures of Performance • Output measures: Quantitative Measures of Performance Sales revenue achieved. Profits generated. Percentage gross profit margin achieved. • Input measures: Sales per potential account. Number of calls made. Sales per active account. Calls per potential account. Sales revenue as a percentage of sales potential. Calls per active account. Number of orders. Number of quotations (in part, an output measure also) Sales to new customers. Number of calls on prospects. Number of new customers. Measures of Performance Example of Quantitative Measure Measure of Performance Qualitative Measures of Performance Sales Skills • Handling the opening and developing rapport. • Identification of customer needs, questioning ability. • Quality of sales presentation. • Use of visual aids. • Ability to overcome objections. • Ability to close the sale. Customer relationships Selforganization • How well received is the salesperson? • Are customers well satisfied with the service, advice, reliability of the salesperson, or are there frequent grumbles and complaints? • Prepare calls. • Organize routing to minimize unproductive travelling. • Keep customer records up to date. • Provide market information to headquarters. Product knowledge • Their own products and their customer benefits and applications. • Competitive products and their benefits and applications. • Relative strengths and weaknesses between their own and competitive offerings. Co-operation and attitudes • Respond to the objectives determined by management in order to improve performance? • Co-operate with suggestions made during field training for improved sales technique? • Use their own initiative? Measures of Performance 1: SALESFORCE EVALUATION DEFINITION & PROCESS 2: THE PURPOSE OF EVALUATION Review of Main Points 3: SETTING STANDARDS OF PERFORMANCE 4: GATHERING INFORMATION 5: MEASURES OF PERFORMANCE (QUANTITATIVE AND QUALITATIVE)