Improving The Effectiveness Of A Sales Force

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Effectiveness of a Sales Force In most organizations, the sales force is among one of the most effective channels of engaging customers. However, it often times may come with an associated cost. As explained by Chaharsoughi and Yasory (2012), in most of the instances, sales expenses accounts for ten percent of the total revenue or more. It is therefore necessary, to improve the effectiveness of the sales force by identifying and prioritizing the best sales strategies. By identifying and closing gaps within the sales process an organization can capture specific and significant growth opportunities. The main objective is not having a shiny and bright sales force, but instead having the right investments in a sales force, which in turn, achieves …show more content…
Management studies sales reports to see what goods or services are doing well and where there are areas for improvement. It is also used to determine how to stock and maintain inventory, set production and manufacturing practices and to see how the company is comparing against set goals. The proper use of sales analysis enables management to establish variations in sales techniques, better plan successful sales strategies, establish the areas that require improvement and recognize which salespeople are under or over performing. Another approach of assessing the effectiveness of a sales force involves the use of cost analysis. Many companies implement policies and procedures that are intended to increase sales. Often times, however, those sales do not increase profit. Cost analysis looks at costs incurred and whether the returns justify the expenditures. Through gathering, classifying, comparing and studying cost data, companies can increase the effectiveness of their marketing expenditures. Proper use of cost analysis allows organizations to identify where input should be increased, remain the same or be …show more content…
In order to properly evaluate the process, key items, such as input, output, profitability, ratio and qualitative performance must be examined. As a sales manager, it would be imperative for me to utilize this analysis while evaluating the performance of my sales personnel. In doing so, I would not only ensure our organization is successful, but also my sales team and finally myself.
Firstly, it would be important for me to consider the sales pipeline input measures. Input measures are defined as the measurement of resources, put into a sales process in order to achieve an output. I would focus on deals entering the pipeline through leads, cold calls, meetings, presentations or proposals. By comparing these input measures, I could determine which salesperson had a better win rate or was actively seeking to bring business into our organization. As explained by Kautish (2011), a historical win rate gives a good flow of opportunity assessment and a meaningful future revenue

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