Monitoring and Performance Evaluation & Managing sales information

1. Monitoring and Performance Evaluation&Managing sales information

2. Monitoring means “Keeping abreast of the salesmen’s activities through a formal feedback system” • Basis of Monitoring of the sales personnel. • Sales Reports and • field visits by sales manager • How much detail required in sales report? • Decentralized sales org. covering a wide territory will require detailed reports • Degree of freedom given to salesman in planning and scheduling his work, More the freedom, greater the detail required. • Sales Reports are the basic input in the formal appraisal of the salesperson’s performance.

3. Purpose of Reports • To keep the sales manager informed about all the activity of salesmen. • To help the salesman take stock of their own work, compare it with his own past performance Data. • To make the data available for evaluating performance • To record competition activities – new product launches, price changes, service policies etc

4. Act as a valuable input to the marker research department • Assist a new sales person taking over an old territory • To help salesman plan his work, • Outstation visit • Keep a track of competitive activities • Keep a record of suspect / prospect • Keep a record of customer complaints, reaction to new product launches, • Help in determining right time to call on prospects • Provide mailing list to the marketing Department • Formulating marketing strategies

5. Content of Sales Report • Progress Report • Expense Component • Work plan Component • New Business or potential business component • Lost Business component • Complaints regarding product, service , company policy

6. Monthly Planner Name: Desg:

7. Weekly Activity Report Week ending_________ Orders Placed Prospects Customer lost

8. Weekly Expense Report Name____________ Week Ending: Approved___________ Amount to be reimbursed__________Sign_______

9. Entertainment Expenses

10. Monthly Sales Report • Branch__________ Month______ 1.Sales quota Monthly Quota met/ exceeded Yes  No YTD Quota met/exceeded Yes  No Percentage of quota 2. Sales Personnel met/exceeded quota Name % ______________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ 3. Sales Personnel not met Quota Name % _-------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ --------------------------------------------------------------------------------------------- 4. Action taken to correct deficiencies __________________________________________ _____________________________________

11. 5.. Dates of sales meeting held 6.Scheduled dates of meetings next month 7Subjects to be discussed 8. Repeated complaints about product Yes  No Specify 9. Competitors activities _____________________________________________________________________ 10 .Suggestions for improving product sales service 11.Other comments --------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- Sales Manager

12. Performance Evaluation Process • Establish Performance standards • Recording Performance • Evaluating Performance with standard • Taking corrective Action

13. Factors to be considered • Judicious mix of Qualitative & Quantitative Standards • Periodicity of Evaluation • Product mix sold by different salespeople • Sales potential in different territories • Selling expenses in different territories

14. Establishing Quantitative Performance Standard • Quotas: Targets in terms of Rs Sales, Units of products, expenses or non sales activities in a specified territory • Selling Expense Ratio • Sales Expense/ Sales Volume • Expenses: Office/ Admin expenses, salary, commissions, travel, entertainment • This standard is used more for industrial products. as these firms put a lot of emphasis on personal selling and entertaining of customers. • Disadvantage: • Over economize on the selling expense at the cost of business • Disproportionate sales mix resulting in favorable selling expense ratio but low profits

15. Territorial Net Profit/Gross Margin ratio: • This standard overcomes the shortcoming of sales expense ration. • The sales person is encouraged to sell a balanced line keeping in mind the relative profitability of different products. • Each territory is considered as a separate profit centre by selling more and balanced line and reducing the selling expenses. • Draw backs • Salesperson has no control over price policy which effects both net profit and gross profit. • Delivery cost is also beyond the control of the salesman

16. Territorial Market Share • This standard controls the territorial market share of the org. • Management sets target market share %s for each territory • Later compares company sales to industrial sales in each territory. • Closer control over the individual salesman’s sales mixture is obtained.

17. Sales coverage Effectiveness index • This standard indicates how well the territory is being covered by the salesman. • This index consist of the ratio of the number of customers to the total prospects in a territory. The salesperson must have a good prospect base for each class of customer. • No. of prospects/no. of customers • 60/100 3:5

18. Call Frequency Ratio • This standards ensures that • Right number of calls are being made on more potential customers. • Interval between calls are neither too short nor too long. • Too short time interval is not spent on customers for getting unprofitable small orders nor too long time interval which leads to losing to competitors • Number of calls on a particular customer class/ No. of customers in that class

19. Calls per day • This standard is set to avoid too few calls per day due to • Wrong planning –Poor routing –calling without appointment, starting late from office –increas waiting time. • This standard is fixed on the basis of density of density of customer location, traffic condition and competitors practice • Sales person making too many calls but no achieving his targets need training of making productive calls.

20. Order call ratio • Number of orders/ Number of calls made. • Number of orders secured /number of calls made

21. Non Selling Activities • Dealer display • Joint advertising Contract • No. of dealer salesman trained • No. of public relation calls made

22. Assigned Standard Of Performance