Introduction The study has been done on Sales Department of Dibon Software Solutions (P) Ltd.
Company’s Profile Dibon Software Solutions India Pvt. Ltd. is 100% owned subsidiary of Dibon Solutions Inc. (Dibon), a global end-to-end IT Solutions provider delivering successful IT Products and Services to Fortune customers in 6 industries and 4 continents since 1991. Headquartered in Dallas USA, Dibon has 9 offices spanning across US, Europe, Canada and India and global development centers in Chandigarh, Dallas, New Jersey and Toronto along with a new 450-seat state of the art Development Centre at Mohali (India) in progress. With over 1100 employee worldwide, Dibon has enduring relationships with all its customers by providing Global Delivery Model coupled with complete ownership and Project Management Dibon Solution’s centers in the Dallas, Chandigarh and Toronto serve more than 50 clients.
Dibon’s Alliances Dibon has chosen to partner with many of the leading technology vendors like; Microsoft, Oracle, SAP, Sun Microsystems, IBM, Sybase, Peoplesoft, Siebel, Cisco Systems, Cognos, Informatica, Citrix, SeeBeyond, Business Objects, Remedy and many more to provide industry standards and enable us to continuously change with the customer requirements.
Revenue Snapshot Dibon has grown from $10.7 million in 2002 to $ 60.5 million in 2007. Below is a snapshot of Dibon’s performance over the past six years.
Key Service Offerings Business Intelligence and Data Warehousing Solutions End-to-end Application Development and Maintenance Services.Net, Java E-commerce across entire spectrum of technologies ERP Implementation in SAP, Oracle, PeopleSoft, Remedy Portal and Content Management Solutions Implementing Enterprise Business Solutions such as CRM, SCM, SRM
Sales Group - Structure As shown in diagram, Sales group consists of 9 people reporting to Vice President of the organization and is responsible for: Service Marketing Division – It comprises of 3 people. This division focuses on marketing the services of Dibon to the prospects by generating leads for possible sales. The group explores various prospects by organizing and managing international level seminars, conferences, relationships with industrial bodies and proactive event management activities of Internal and external branding within Dibon such as preparing brochures and other sales collaterals. Customer Service Division – It comprises of 6 people. This division focuses on handling ultimate sales by developing strategic relationships and alliances with customers, generating sales opportunities and target markets.
Sales Group - Strategies A Sales Incentive Plan (SIP) is used to motivate and compensate the sales professional to meet goals or metrics over a specific period of time, usually broken into a plan for a fiscal quarter or fiscal year. Following strategies are adopted as measures of SIP: 1.Monetary Rewards - Effective rewards both motivate short-term behavior and provide motivation over time. There are several types of rewards: Cash - Money Certificates – Performance appraisal certificate / Best performer Merchandise - Merchandise rewards can range anywhere from small branded key chains to high-end electronics Travel – Any company sponsored trip for family or for the couple 2.Non-Monetary Rewards - Non-monetary incentives are used to reward sales force for excellent behavior through opportunities. Non-monetary incentives may include flexible work hours, payroll or premium contributions, training, health savings or reimbursement accounts, or even paid sabbaticals. Recognition certificates are used. This may include stickers, T-shirts with banner logo etc
Sales Budgeting Sales budgets are developed for the smooth functioning of the sales function. Developing sales budgets serve two purposes - as a mechanism of control and an instrument of planning. There are several benefits of sales budgeting: Improved planning Better communication and coordination Performance evaluation Psychological benefits Avoiding uncontrolled expenditure. In Dibon, sales managers prepare three types of budgets: 1.Sales Budgets - A sales budget gives a plan showing the expected sales for a specified period in the future. 2.Selling expense budget - Selling expense budgets details the schedule of expenses that may be incurred by the sales department to achieve planned sales 3.Administrative Budget - Administrative budget specifies the budgetary allocations for general administrative expenses that would be incurred by the sales department.
Sales Budgeting… contd Methods of Sales Budgeting: 1.Percentage of Sales method – On any sale, sales person will be given 30% of the cost of the project. OR for any sale between 5 – 10 lacs, sales person will get 10% of the cost of project. From 10-20 lacs, sales person will get 20% of the cost of project and so on. 2.Return oriented method – When a company earns 10 lacs of profit in a particular time (say 1 year or 6 months), then only sale person will get 10% of the amount. Dibon follows this policy.
Sales force evaluation process Type of questions that come in mind of top management Are they selling anything? How much have they sold? To how many people/businesses? How many prospects do they have? Are they keeping track of prospects? Are they building a database? How are they reaching new prospects? Are they straying from the marketing plan? Are they presenting a brand image consistent with other salespeople and the company? Dibon follows following steps for the performance evaluation: The first step is to determine the factors that affect the performance of the sales force. The next step involves the selection of criteria that will be used to evaluate the performance. Step Three involves establishing performance standards that can be used as a basis to compare the performance of the sales force. Step four involves monitoring actual performance. The last step is to review and provide feedback to the sales personnel.
Sales force evaluation process…. contd The first thing that is followed in Dibon is, a sales person let the management walk through with his/her territory (2 people are deployed for APAC, 2 for US and 2 for UK) and then to his/her strategy and plan. The territories are assigned based on the experience of the sales person. In Dibon 2 people are assigned for each region. Out of the two, 1 is having experience of 4-5 years and other has experience of 2-3 years. Sales force maintains an opportunity tracker that contains the details of opportunity like; Name of the company, Overview of Opportunity, Submission date, List of competitors, Contact person details, etc. On the closure of every opportunity, Win/Loss report is prepared that contains reasons for the win/loss of the deal based on the feedback from the client in order to improvise in future. Sales force gives monthly status Sales report in the form of presentation to the Vice President of company. The quarterly presentation is given by sales force to the Chairman of the organization.
Sales force evaluation process…. contd The sales rep develops a presentation that covers: The territory and an overview of the total opportunity within it Their budgeted quota and progress against quota year to date The current quarter’s campaigns – both strategy and tactics to develop and close The longer term campaigns that affect the latter part of the year (or the following year) Their process for developing accounts – eg. if it’s a cold calling type of territory how many calls per day and what’s the conversion and closure rate?; if it’s a major account strategy how are they approaching development of the key relationships? Their forecast What’s working for them with the product and marketing What’s not working – what additional help they need.
Sales force evaluation process…. contd Methods of sales force evaluation: 1.Quantitative measures – The sales force is judged on the volume of sales generated so far. It is further listed down as Number of new accounts / customers created Number of deals won from existing customers 2.Time-based measures – Based on the list of pipeline prospects, how many deals have been converted so far within the duration of 6 months / 1 year. 3.Cost-based measures – The ratio of the amount of money spent on making customer visits, calls and other administrative costs wrt the number of deals/the amount of revenue generated for the organization
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