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5 Performance - Measurement - Sales - Executives PDF
5 Performance - Measurement - Sales - Executives PDF
Dr. Rosenbloom
A Sales Force Evaluation Model
Set goals and objectives for
sales force, including:
Revenues
Contribution profits
Market share
Expense ratios
Measure results
Take Corrective Action
against standard
Output Measures Used in Sales
Force Evaluation
Table 13-1 Output Measures Used in Sales Force Evaluation
Sales Profit
Sales volume dollars Net profit
Sales volume previous year’s growth Gross margin percentage
Sales to quota Return on investment
Sales growth Net profit as a percentage of sales
Sales volume by product Gross margin dollars
Sales volume by customer Margin by product category
New account sales Accounts
Sales volume in units Number of new accounts
Sales volume to potential (market Number of accounts lost
share)
Orders Number of accounts sold
Number of orders Number of accounts buying full line
Average order size
Batting average (orders/calls)
Output Measures Used in Sales
Force Evaluation
Percent Percent
Performance Measure Using Performance Measure Using
Sales Profit
Sales volume dollars 79% Net profit 69%
Sales volume previous year’s sales 76 Gross margin percentage 34
Sales to quota 65 Return on investment 33
Sales growth 55 Net profit asa percentage of sales 32
Sales volume by product 48 Margin by product category 28
Sales volume by customer 44 Gross margin dollars 25
New account sales 42
Sales volume in units 35
Sales volume to potential 27 Orders
Accounts Number of orders 47
Number of new accounts 69 Average size of order 22
Number of accounts lost 33
Number of accounts buying full line 27
Input or Behavior Bases Used in
Sales Force Evaluation
Table 13-2 Input or Behavior Measures Used in Sales Force Evaluation
Expenses Effort
Cooperation Knowledge
Net Sales
Less Variable Costs: Cost of Goods Sold (CGS)
Sales Commissions
Equals: Contribution Margin
Less: Direct Fixed Selling Costs
Equals: Profit Contribution
Evaluating Sales Force
Performance: Product Costs
Batting Average
Average Order Size