Monitoring and Performance Evaluation & Managing sales information

Monitoring means “Keeping abreast of the salesmen’s activities through a formal feedback system” Basis of Monitoring of the sales personnel. 1.Sales Reports and 2.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.

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

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

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

Branch Manager Month WhenWeek One Week Two Week Three Week Four Week Five During the week Monday Tues day Wednesday Thursday Friday Saturday Monthly PlannerName: Desg:

Weekly Activity Report Week ending _________ Comp any Name of Contact ModelStatus Prospects Orders Placed Customer ModelPayment Received Rem arks CustomerModelLost to competitor Reasons Customer lost Total No of calls No of cold calls No of cc calls

Weekly Expense Report Date From/To Travel MealsLodgingEntertain ment MiscTotal Mon Tues Wed Thur Fri Sat Sun Name ____________ Week Ending: Approved___________Amount to be reimbursed__________Sign_______

Entertainment Expenses Date Name Of Person Entertained FirmWhereNature/ Purpose Bills Attached Amount

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% _ Action taken to correct deficiencies __________________________________________ _____________________________________

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

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

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

Establishing Quantitative Performance Standard 1.Quotas: Targets in terms of Rs Sales, Units of products, expenses or non sales activities in a specified territory 2.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

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

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.

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

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

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.

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

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

Sales Person___________Operating Period 1. Sales during Period________Quota RS____________ Standard: Meet or exceed Quota 2. New Account Obtained_______________ Standard : 5 Per period 3. Sales to new Account Rs______________________ Standard: 10% of total sales call 4.Total Calls______________ Av calls per day _______ Standard : 5 calls per day 5. Proportion of calls on Retail________% Wholesale_____% Standard 30% WS 70% Retail 6. Total sales meeting held______ Attended________. Standard: Attend all 7. Customer Entertained during period _____ Average per week________ Standard: 1 or more per week Assigned Standard Of Performance