Sales Framework for Milford Industries-Capital District Region.

Topics: Sales, Customer service, Consultative selling Pages: 8 (1420 words) Published: December 11, 2005
The Capital District Region is a vibrant area which has quite a potential as per the data collected but due to some reasons the performance is lagging behind the national average.

The primary reasons for this underperformance are low employee morale, high turnover and poor efficiency. Hence, we need to address these issues at the earliest and identify the high and low performers among the sales force in order turnaround the situation.

We need to critically evaluate the performance of the individual sales agents so as to identify the loopholes and plug them accordingly. Following are some of the metrics on the basis of which we evaluate individual sales agents and accordingly we need to make changes with respect to allocation of areas, sales targets etc.

Performance Metrics

The performance metrics of sales agents has been developed on four parameters namely:

- Performance

- Efficiency

- Business Development

Finally these metrics should be assigned Weightage and accordingly the sales agents are ranked and suitable territories be allocated.

Performance

Sales H1 (83) to H1 (82)

The ratio compares sales in first half year sales in 1983 to that of 1982. This indicates the performance of the sales agents. This would indicate the potential of the agent and the ability to harness sales potential in an area.

Higher the ratio better it is.

Sales/Active Account

This measures the sales skills of the agent , how far is the salesman able to push his products to his clients.

Higher the ratio better it is.

Active/Potential Accounts

This compares the activity of the salesman, also measures whether the sales agent is able to convert potential in to actual sales.

Higher the ratio better it is.

Sales per unit area of Territory

This ratio measures the amount of sales over per unit area of territory. This would indicate the reach and potential of the salesman.

Higher the figure better it is.

Net contributions

Net contributions are calculated by deducting total compensation and expenses incurred on an agent from the total profits generated by that agent.

Higher the figure better it is.

Efficiency

Profit Margin

This ratio measures the margin of profits generated on every rupee of sales. This ratio indicates the focus of the salesman on pushing those products that have high profit margins.

Sales/Expense

This ratio measures ability of the agent to maximize sales while incurring minimum expense. This shows how efficient the agent is. Also it denotes the revenue earned per unit expense.

Higher the ratio better it is.

Profit/Costs

This ratio measures efficiency of the agents by calculating profits generated per unit if costs incurred. Costs include total compensation plus expenses incurred.

Higher the ratio better it is.

Expense/Area

This ratio measures total expenses incurred by the agent per unit of area under control.

Lower the ratio better it is.

New Business Development

Number of calls per potential customer

This ratio measures the endeavor of the agent to develop new business and harnessing potential sales.

Higher the ratio better it is.

New customers / Total customers

New customers added to total customers.

Higher the ratio better it is.

Individual Performance Evaluation & Recommendations

(Refer Annexure 1)

Doug Eaton

He is the most efficient salesman as his sales to expense ratio is the highest. His experience and networking skills has been responsible for this achievement. Over the years he has been an efficient performer, and has the credit of the highest profit contributed and also high profit/expense ratio. He can be assigned the job of mentoring new salesmen. New salesman under him could learn the job well.

Ernie Burke

Though a good performer, he refuses to follow certain company policies like merchandising programs. He brings the third largest profit to the company but has a low profit/expense...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Milford Industries Essay
  • Sales and Capital District Research Paper
  • Capital Expenditure in the Hospitality Industry Essay
  • Essay about Capital
  • An Analysis of Working Capital Management Results Across Industries Essay
  • Capital Expenditure and Revenue Expenditure Essay
  • Capital Goods Industry Essay
  • Region Essay

Become a StudyMode Member

Sign Up - It's Free