Bài giảng môn Quản trị lực lượng bán hàng - Ch14

Establish sales force performance standards.. Understand how to provide feedback and evaluation in order to improve sales force performance.. Apply twenty-first century sales force perf

Digital Multimedia PowerPoint Lectures for

Sales Force Management

Prepared by:

Dr Rajiv Mehta Professor of Marketing New Jersey Institute of Technology

Newark, N.J.

Chapter 14:

Sales Force Performance Evaluation

Learning Objectives

When you finish this chapter, you should be able to:

1 Carry out the sales force performance evaluation

process using outcome-based, behavior-based, and professional development measures

2 Develop different types of sales goals and objectives

for preparing the sales plan

3 Establish sales force performance standards.

4 Allocate resources and efforts through sales quotas.

5 Describe sales dashboards and their importance to

sales force management decision-making

6 List the major steps in the sales force performance

evaluation monitoring system (PEMS).

7 Understand how to provide feedback and evaluation

in order to improve sales force performance

8 Apply twenty-first century sales force performance

appraisal methods.

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Introduction

How is performance appraisal conducted for individual salespersons? What factors should you include in the appraisal process?

What are the steps of a formal appraisal system?

What performance appraisal techniques would be appropriate?

What are the limitations of sales force evaluation systems?

How can feedback improve sales force performance?

Sales Force Performance Appraisal

A performance appraisal enables

sales managers to:

1 Increase/decrease compensation and

awards to high/low performers

2 Identify training needs of

salespeople

3 Revise sales performance and

evaluation process, and

4 Develop a top notch sales team

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Timing of Salesperson Performance Appraisals

Performance appraisals are usually

conducted:

1 Once a year

2 Sometimes semiannually, and

3 Sometimes quarterly

Evaluations include both:

1 Objective (quantitative) criteria,

and

2 Subjective (qualitative) measures

A Contemporary Approach To Sales Force

The steps to conduct a sales force

performance appraisal is as

follows:

1 Establish sales goals and objectives

2 Develop the sales plan

3 Set sales force performance standards

4 Allocate resources and sales force efforts

5 Measure sales force performance against

standards, and

6 Provide feedback

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Step 1: Establish Sales Goals and Objectives

In the first step, sales managers should establish sales goals that should

be congruent with the firm’s goals and objectives

Sales goals, such as the following, can be formulated:

§ Increasing sales by 5% each year over the next 5 years

§ Increasing market share by 4% by the next 5 years

§ Reducing customer defections by 12%, and

§ Increasing the new customer base by 10% each year

Step 2: Develop the Sales Plan

3.

Action Programs

2.

Opportunities and Problems

1

Situation Analysis

4.

Performance Evaluation Systems

Sales Plan

The sales plan provides the “road map” showing how to achieve

goals, which has four major parts:

Sales Force Performance Evaluation Criteria

Step 3: Set Sales Force Performance Standards

Combining Sales Performance Evaluation Criteria

4 BEST: Use a hybrid approach, combining all three to get a

complete picture of the salesperson’s performance

Sources of information for sales performance evaluations:

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Sales Dashboards

A sales dashboard is a diagnostic

tool or graphical interface that

quickly displays valuable metrics

and key information sales force

performance

Sales dashboards include key

performance indicators (KPI)–a

numeric indicator of business

performance for any activity

important to a firm is considered

to be the “vital statistics” for a

sales organization

Sales Dashboards

A sales dashboard should

display sales metrics, such as:

1 Individual salesperson performance

1

Strategic Dashboards

4.

Informational

Dashboards

Types of Sales Dashboards

Key Benefits of Sales Dashboards

Some key benefits of a digital sales

dashboard should include the ability to:

1 View instant graphic presentation of

important sales performance metrics

2 Spot early-on the developing positive

and negative sales trends in markets

3 Display sales analytics that reveal

performance efficiencies and

inefficiencies

4 Be able to quickly generate detailed

reports for salespeople and

management

Step 4: Allocate Resources and Sales Force Efforts

3 Combination Quotas

Types of Sales Quotas

• Expense Quotas

• Profit Quotas Gross Margin Contribution Margin Net Profit

• Number of current customers

or new prospects called on

• Number of product demonstrations made

• Number of new accounts established

• Number of service calls made

Step 5: Measure Sales Force Performance

Against Standards

Performance evaluation monitoring system (PEMS) allows sales

managers to closely monitor each employee’s daily activities, which

comprises of three successive stages:

2.

Performance Appraisal

Performance Evaluation Monitoring System Stages

Traits of Performance Appraisal Techniques

Traits of Performance Appraisal Techniques

1.

Job Relatedness

5

Practicality

6

Comparabil ity

7.

Discriminab ility

8.

Usefulness

Types of Performance Appraisal Techniques

3.

Management By Objectives

2.

Graphic Rating Scales

1

Descriptive Statements

4.

Behaviorally Anchored Rating Scales (BARS)

Types of Performance Appraisal Techniques

Graphic Rating Scales

Semantic Differential Graphic Rating Scale

Behaviorally Anchored Rating Scales

Will always cooperate in any way with other sales force team members, even if such effort is personally inconvenient or requires self-sacrifice

Is generally antagonistic toward other team members and frequently undercuts group efforts

Will seldom help other team members and tends to resent contributing to group effort

Will occasionally help other team members with field sales problems

Is usually willing to help other team members on field sales problems

Can be expected to go out of his or her way to help other team members with any work-related problem

9 8 7 6 5 4 3 2 1 10

0

Cooperation With Sales Team Members

Very high

Indicates strong willingness to

cooperate with other members

of the sales team

Moderate

Indicates an average amount

of cooperation with other

team members

Very low

Indicates generally no team

effort, which often hurts group

performance

Limitations

Providing Feedback on Salesperson Performance

Sales managers must provide

prompt, explicit, and meaningful

feedback to their salespeople if

they are to improve performance

Formal feedback enhances:

Improving Sales Force Performance

When the sales manager and the

salesperson meet, they should:

1 Discuss and reconcile discrepancies in

b Formal retraining, and

c Field-related actions by the

salesperson’s immediate supervisor

Emerging Perspectives In Twenty-first Century

Sales Force Performance Appraisals

Three emerging perspectives on

sales force performance

360 Degree Performance Evaluation

An 360-degree performance appraisal

elicits information on a salesperson’s

skills, abilities, and behaviors from:

1 The sales manager

2 Sales team peers

3 Subordinates

4 Other departmental coworkers

5 Purchasing managers

Sales Subordinates

Accounts Payable Managers

Self Appraisal

Sales Manager

Sales Team Peers

Purchasing Managers (Clients)

360 Degree Salesperson Performance Appraisal

workers

360 Degree Performance Evaluation

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Performance Evaluations of Team Selling

Team performance evaluation starts with

selecting the relevant performance criteria

and appraisal methods by both sales

managers and team members, who should

be part of the process

Each team member rates all the other

Performance Review Ranking System

Salespeople evaluated on performance using

a scale, such as:

The sales manager then ranks each

salesperson and places them in performance

categories:

§ Top 20 percent

§ Middle 70 percent, and

§ Bottom 10 percent

Different methods, but no best way to conduct

a salesperson performance assessment

31 Copyright ©2020 John Wiley & Sons, Inc

Note

This Electronic Presentation To Be Used With:

Hair, Joe, Rolph Anderson, Rajiv Mehta, & Barry Babin (2020), “Sales

Force Management,” 2nd Ed Hoboken: John Wiley & Sons

(ISBN-13: 9781119702832)

Text/images may not be modified or reproduced in any way without

prior written permission of the publisher www.wiley.com/go/permissions

Copyright © 2020 John Wiley & Sons, Inc.

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