SALES FORCE PERFORMANCE EVALUATION AND
CONTOL
Marketing Audit
• A comprehensive, periodic and systematic examination
of a company’s marketing environment, objectives,
strategies, and tactics with a view to find out
opportunities, problems and recommend an action plan
to improve the company’s marketing performance.
• The audit concept can also be applied to functions within
the marketing deptt. like the sales management
function.
Sales Force Audit
• A salesforce or sales management audit is a
comprehensive, systematic, diagnostic and
prescriptive tool to evaluate the effectiveness of a
sales organisation
• Its purpose is to assess whether a firm’s sales
management process is adequate to give direction
for performance improvement and to recommend
the needed changes.
What is Performance Appraisal?
• Performance Appraisal refers to a formal, structured
system of measuring and evaluating a salesperson’s
activities and performance.
Purpose of Performance Evaluation
Personnel
Planning
Goals
Penalties
Achieved
Performance
Compens Evaluation
ation & Feedback
Rewards
Training
&
Promotion
Develop
ment
Procedure For Evaluating And Controlling
Sales Force Performance
1. Set policies on performance evaluation and control
2. Decide the bases of Salespersons’ performance evaluation
3. Establish Performance standards
4. Compare actual performance with the standards
5. Review performance evaluation with salespersons
6. Decide sales management actions and control
1. Set policies on performance evaluation and control
• Frequency of Evaluation
• Who conducts Evaluation?
▫ 360 Degree Feedback
Assessment involving multiple raters, including superiors,
colleagues, subordinates, customers and the employee herself
• Management by Objectives (MBO)
▫ Manager and Salesperson discuss and jointly agree on the
salesperson’s
▫ Specific objectives/ goals
▫ Action plan for the achievement of these goals
▫ Review of actual performance against objectives periodically to
take corrective actions
• Sources of Information
▫ Sales reports – incl. call reports, expense reports, new-
business reports etc.
▫ Also: supervisory calls, prospect and customer files,
customer appreciation and complaint letters, customer
surveys and peer feedback
Sales call Reports
Sales Activity Reports
2. Decide the bases of Salespersons’ performance
evaluation
• The sales force can be evaluated on the basis of criteria
related to
▫ Traits - Ex: decisiveness, reliability, energy, loyalty
▫ Outcome/ Results - typically quantitative, may be biased.
▫ Behaviour/ Activity/ Effort – quantitative (avg no. of daily
calls / qualitative ( product knowledge, customer relations)
▫ Combination/Hybrid : quantitative results/efforts/attitudes
▫ Multiple evaluation criteria should be preferred.
Bases of Salespersons’ performance evaluation
3. Establish Performance standards
• Performance standards are usually in the form of:
▫ Sales Targets or quotas
▫ Qualitative or Quantitative behavioral / activity criteria
• Performance standards should be
▫ Fair
▫ Realistic – Not too high nor too low
▫ Motivational
▫ Clearly communicated to salespeople
4. Compare actual performance with the
standards
• Individual performance is measured and compared
with the pre-established standards
• Various methods of evaluation can be used:
a) Graphic rating scales
Selling Skills
Product
know-how
Customer
Satisfaction
b) Ranking
Rank ordered on basis of various criteria.
Forces discrimination, cannot be translated into a
graphic rating though the converse is possible
c) Descriptive Statements
Highly subjective, writing skills may vary, incorrect
interpretation etc.
d) BARS
B
5. Review performance evaluation with
salespersons
• One of the most challenging aspects of a manager’s job!
▫ Prefix the date, time, venue of the review meeting
▫ Salesperson should be asked to review his/her own performance w.r.t
the job description and established goals.
▫ The sales manager should present his views on the salesperson’s
performance.
▫ Mutual Agreement on the performance must be established
▫ Constructive feedback and action plan by the manager on each aspect
of the performance
▫ The review and its contents may be documented and sent to the sales
person and the sales manager’s immediate superior
6. Decide sales management actions and
control
• Identify Problem areas
• Find causes
• Decide sales management actions
▫ Training on selling and negotiation skills
▫ Redesign territories/compensation plan/company
policies/strategies/margins
▫ Reward/ Penalty
Ethical Responsibilities of Salespersons
• Ethics
• Business Ethics
Key aspects of Ethical Behaviour
• Establish a code of ethics/guidelines on conducting business
• Social Responsibilities: CSR
• Follow govt. laws and regulations, do not engage in unfair pricing practices
• Bribes – Illegal
• Dealing with the company: client poaching, inflated expenses etc
• Dealing with customers
▫ Misrepresentation of product features etc.
▫ Gifts/Entertainment:
Follow company policy on gifting, low-value gifts,
Should be appropriate and in accordance with sales potential of customer.
Aim to cultivate LT relationships.
