The last function of the sales management process is to evaluate and monitor the sales force.
It is at this point that sellers are evaluated as to whether they met the sales targets and continued to meet the sales targets and followed the account management policies.
Both quantitative and behavioral measures are used to evaluate different dimensions of sales.
Definition of control
It is the continuous and systematic average of the results obtained, to ensure that they agree with the established objectives.
It is supported by an information system and systematic control of variables such as: volume of sales, customer coverage, level of distribution, maintenance of the face, new customers, level of defaults, etc.
The information must be real, accurate, updated and adequate to:
- Identify and analyze deviations Take appropriate corrective measures
Acceptance of the Principle
- The control function, which is already very complex in itself, is further complicated in the case of the sales team working outside the immediate supervision.The seller also has a special personality (he wants to self-correct, he does not accept certain rules of behavior, etc.) and the Sales Management must get the seller to accept the principle of the measure, the evaluation and the proposal of corrective actions, as well as understand the importance of control for controller and controlled:
For the seller
- A comparative appreciation of individual values. A help for your professional career. A help to improve your training and orientation.
For the company
- Better allocation of sellers to different types of customers. Promote internal promotion and improve external selection. Discover training needs.
Elements that determine the degree of control
- The remuneration policy: If the remuneration is proportional to your work, the control is not as necessary as when the salesmen receive a fixed salary. In these cases, it is necessary to control the quality of the orders and the activities that are not direct sales. Degree of responsibility: Sellers who have less responsibilities and who must act within a well-established framework should be controlled more strictly. delimited.Size of the company / team: It must be greater than the size of the company and / or team and the contact head of sales / seller is extended over time.Quality of sellers: Due to their human and professional qualities there are people who deserve a greater degree of confidence and autonomy.If the selection process is not very demanding or there is a frequent rotation of sales personnel, more rigorous control is necessary.
Phases of the control process
- Establish predetermined criteria for evaluating the results and the progress of the activity:
- The evaluation criteria must be quantitative and qualitative. They must be informed to the controlled personnel, so that they concentrate their efforts on achieving them.
- A mediation throughout the control process, both of the results obtained and of the activity in progress.
- The basic elements for measuring the sales force's results are its periodic reports and the administrative documents generated by its management.
3. Compare the results obtained with the pre-established criteria to identify possible deviations: the negative ones to be collected and carefully analyzed by the controller, and the positive ones to be "transferred" and enhanced.
4. Develop actions aimed at correcting possible deviations as soon as they are detected.
Control Standards
Exercising the control function implies defining reference standards as comparison elements for the actual results. The standards must therefore be quantitative concepts that allow a measurable and objective vision.
Basically there are three types of standards or indicators:
The fixed or absolute
The fixed indicator par excellence is the annual sales quota.
The achievement or not of the established annual goals constitute an absolute standard that offers us a measure of reality. Its drawbacks are:
- Lack of information on the causes of poor performance. The inability to react in time to restore balance.
Variables
- They compare actual results with planned monthly, weekly, or daily targets. These indicators allow you to discover deviations more quickly, but they also do not discover the source of the problems.
Analytical or diagnostic
- They help discover why the seller's performance deviates from the intended goal. There are four commonly used measures, related to the activity of the seller. The number of visits. The frequency of visits. The clients visited. The content of the visits.
These standards also help detect potential problems before they appear.
The standard setting process to control sales can be refined according to the particular needs of each situation:
- The objectives are subject to breakdown by product lines, in new and repetitive purchases. The visit rate can be divided between effective and non-effective visits, visits to clients or potential visits. If standards are established for selling expenses, it will suffice to analyze only exceptional expenses.
The best way to set a level for each type of standard is to analyze historical data, examine what happens in other departments, and if possible, take references from other companies in the sector.
To ensure that more appropriate standards have been determined, Sales Management should check whether they comply with the following principles or:
- Be quantitative, as far as possible, in order to measure the variations that occur. Cover all the objectives that the sales team must achieve. Measure the progress of the team and predict possible results. Serve to diagnose the causes of team performance. Detect possible deviations with enough time to be able to adopt the appropriate measures.
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