Salesperson Performance Analysis Features and Functions
Salesperson Performance Analysis: All companies employing salespeople should have some means of tracking their performance. This analysis normally takes the form of a comparison against some standard, such as a budget, past performance, or other salespeople. This information should be available electronically in the format which can be manipulated easily. If salespeople have the authority to reduce prices to some or all of their customers, they might generate sales volume, but hurt their company. Valued salespeople are those who do not have to rely upon price cutting to generate a substantial portion of their sales targets. Part of the process of reviewing the performance of a sales force is the analysis of the degree of price cutting in which each salesperson and the whole sales force engages. One statistic which might be of interest to marketing managers is the ratio of inquiries to firm orders arising from those inquiries. This ratio might give management an idea as to the effectiveness of a particular salesperson. Another ratio approaches performance from the other side. Management may be interested in how many sales are lost. Bad debts should be controlled whenever possible. One source of bad debts might be the failure of salespeople to make detailed inquiries about a customer's financial health. While the ratio of any one salesperson might not say anything in isolation, it may say a great deal more when compared versus other salespeople.
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- Gross sales
- Commissions earned
- Price overrides
- Conversion ratio
- Canceled sales
- Bad debt ratio
- Summary of all salespeople
- Comparison of salespeople
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Reports Features and Functions
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