LOGO

Sales Force Management & Measurement

Sales ManagementPresented by : Faiza Hammad

Noman AmeenShah Rukh (12485)Sana Sadiq (12877)

Introduction

• Sales Force management is determinant of MARKETING SUCCESS

LOGOYour Your site here here

Sales Force Management ELEMENTS

1. Integration

2. Resource Allocation

3. Rewards

4. Correct hiring & Training

Sales Territories: Sales person’s battleground

Level 2:• Balance potential sales each

territory contains

Level 1:• Minimize Travel expenses

• Minimize time associated with one

customer based in one specific geography

•

Sub titleTerritory Assignment

Under servicing & Over servicing Customers

Sub title

Under servicing

•Sales lost due to lack of activity

•Fewer lead sort

•Fewer prospects identified

•Sales person stretched too thin

Over servicing

•Lower sales directly & indirectly

•Direct result sales person calling too much unless the customer become alienated

• Indirect Result loss from sales in underserved category

Balanced & Unbalanced Territories

Unbalanced Territory Balanced Territory

Unfair sales potential Happier customer, sales person & company

Distorted compensation Potential

Main considerations are:

• Balancing work load

• Balancing Sales Potential

• Develop compact Territories

• Minimize disruptions during redesign

Talented people leave company

Work load

Sales Potential Parameters1. No. of potential accounts exist in a territory2. Served Market3. Size of Population in territory

4. Size Finding5. Time takes to travel a territory

Territory Changes Minimizing customer disruption is a priority with any change Sales people are very protective of territories and unwelcome changes Possible Complaints are:

Setting Sales Goals

Profit and sales objectives

Support product plans, channel and market plans

Motivate sales force for consistent efforts

SMART Strategy

Discuss with sales force how do they feel about the goals set

Forecasting Sales

Measuring Sales Result Effectiveness measures are driven by:

1.) Length of selling cycle2.) Complexity of buying process3.) No. of People involved in decision making

Effectiveness of a sales person is the key measure when analyzing performance

Important numbers to calculate effectiveness:1.)Amount of each sale & contribution from sale2.)No. of calls made3.)Total accounts active4.)Total Accounts in territory

Calculating Effectiveness

LOGOYour Your site here here

Sales Resulting from calls to Customers

Sales-Force compensation

The incentive plan needs to align the salesperson’s activities with the firm’s objectives.

What form of compensation is appropriate for compensation task , to setting the metrics which performance will be based , to finding the level of bonus , salary or commission the financial targets of the firms .

Commission works based when sales effort can be linked directly to a sales .

LOGOYour Your site here here

Rules of Compensation

Rule #1: Make the compensation plan easily understood so that the sales

person understands what behaviors are expected, what the sales objectives are, and what outcomes lead to financial reward.

Rule #2: Don’t play game , state the compensation plan and don’t change

it. Rule #3: Try to set metrics that are objective.

Rule #4: Think about non financial incentives such as recognition program.

LOGOYour Your site here here

Designing Compensation plan

When designing a compensation plan for sales force , there are four key areas:

Level of pay:

Mix between salary and incentive: Measure of performance:

Performance-payout relationship:

LOGOYour Your site here here

Calculating Total compensation

There are many ways to motivate the sales person, For a multi-bonus system the compensation for a sales person:

Compensation($) = Salary($) + Bonus 1 ($) + Bonus 2($)

In a compensation system , the following would represent the compensation for a salesperson:

Compensation($) = Salary($) + [Sales ($) * Commission(%)]

LOGOYour Your site here here

Calculating Total compensation

LOGOYour Your site here here

•Once the compensation plan for the sales force has been created , the sales-force manager may want to reevaluate the size of the sales-force. Based on forecast for sales in the coming year , there may be room to hire more sales people or need to cut back on the size of the force.

Sales Force Funnel:

LOGOYour Your site here here

•A convenient way to forecast sales in the short term and also keep an eye on the sales-force activity is to create a sales funnel.

•The concept of funnel comes from simple principle: From large number of possible customers , only a much smaller number will actually make purchases.

LOGO

Thank you!