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

When Week One

Week Two

Week Three

Week Four

Week Five

During the week

Monday

Tues day

Wednesday

Thursday

Friday

Saturday

Monthly Planner Name: Desg:

Weekly Activity ReportWeek ending_________

Company

Name of Contact

Model Status

Prospects Orders Placed

Customer Model Payment Received

Remarks

Customer Model Lost to competitor

Reasons

Customer lost Total No of calls

No of cold calls

No of cc calls

Weekly Expense Report

Date From/To

Travel

Meals Lodging Entertainment

Misc Total

Mon

Tues

Wed

Thur

Fri

Sat

Sun

Name____________ Week Ending:

Approved___________ Amount to be reimbursed__________Sign_______

Entertainment Expenses

Date Name Of Person

Entertained

Firm Where Nature/ Purpose

Bills Attached

Amount

Monthly Sales Report• Branch__________ Month______1.Sales quota

Monthly Quota met/ exceeded Yes NoYTD Quota met/exceeded Yes NoPercentage of quota

2. Sales Personnel met/exceeded quota Name %______________________________________ ____________________________________________________________________________________________________________________________________________________________________________

3. Sales Personnel not met QuotaName %_-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4. 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 NoSpecify

9. Competitors activities

_____________________________________________________________________

10 .Suggestions for improving product sales service

11.Other comments

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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 all7. Customer Entertained during period _____ Average per week________

Standard: 1 or more per week

Assigned Standard Of Performance