Assessing the productivity and profitability of each sales team member.
The purpose of measuring performance is to clarify the profitability of the sales volume brought in by each sales team member. With that seemingly attainable outcome in mind, why do companies struggle with assessing sales force productivity? They sometimes find measuring sales performance challenging because they have failed to incorporate quantitative and qualitative criteria. Quantitative criteria include sales volume in dollars or units, growth over previous years, new accounts, and profitability. Qualitative criteria include attitude, product knowledge, communication skills, personal appearance, customer feedback, selling skills, and personal initiative. Ultimately, your sales team must be assessed according to clearly defined (and clearly understood) objectives. As a great sales leader, you communicate your objectives regarding sales volume, revenue, profitability, return on investment, market penetration, and market share. Be specific. Set deadlines.
A spreadsheet is a simple way of measuring lead generation and conversion activities. In the first column, titled “Activities,” list each of the following on subsequent rows: prospecting calls (#)/hours spent (#); prospecting calls (#)/appointments made (#); appointments made (#)/sales (#); hours worked (#)/money earned ($); and prospecting calls last month (#)/income this month ($). Each of the adjacent columns should be titled, “Week 1”, “Week 2”, “Week 3”, and “Week 4” respectively. Encourage your sales team to use this tool weekly to measure their activities. Coach your sales team by rewarding them for achieving the objectives and helping them come up with solutions to improve the results of their activities.
Qualitative criteria can be measured by listening to your customers. Who knows more about your sales team’s attitude, product knowledge, communication skills, and personal appearance than your customers? Asking your customers specific questions and encouraging general comments can be useful. There are several ways of getting customer feedback, including comment cards, focus groups, and surveys by mail, telephone and email. You could also engage your customers through social media networking to help reach unreachable customers better. When assessing the productivity and profitability of your sales team, be sure to differentiate between aptitude and attitude. When in doubt, train a poor aptitude and fire a bad attitude.
Just remember that incorporating quantitative and qualitative criteria could help you better assess productivity and profitability.
Strengthen Your Sales Team with Strategic Leadership & Management Training
Maintaining motivation is critical for sustained achievement. As a sales rep, you know this: motivation drives hard work, customer connections, and goal attainment.
However, staying motivated despite rejection, setbacks, and intense competition poses significant challenges.
Many sales leaders grapple with the same issue within their teams. The solution lies in Strategic Leadership and Management Training. By honing your skills, you empower your sales team to take ownership, plan strategically, and surpass expectations.
