Professional Documents
Culture Documents
Performance
of Salespeople
Purposes of Salesperson
Performance Evaluations
1. To ensure that compensation and other reward
disbursements are consistent with actual
salesperson performance
2. To identify salespeople that might be promoted
3. To identify salespeople whose employment
should be terminated and to supply evidence to
support the need for termination
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Purposes of Salesperson
Performance Evaluations
4. To determine the specific training and
counseling needs of individual salespeople and
the overall sales force
5. To provide information for effective human
resource planning
6. To identify criteria that can be used to recruit
and select salespeople in the future
7. To advise salespeople of work expectations
Purposes of Salesperson
Performance Evaluations
8. To motivate salespeople
9. To help salespeople set career goals
10. To relate salesperson performance to sales
organization goals.
11. To enhance communications between
salesperson and sales manager.
12. To improve salesperson performance
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Salesperson Performance
Evaluation Approaches
1. Most evaluate on an annual basis
Salesperson Performance
Evaluation Approaches
5. Most use multiple sources of
information
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360-Degree Feedback System
Sales Manager
Evaluation
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¾ Behavior-
Behavior-Based Perspective
z Incorporates complex and often subjective
assessments of salesperson characteristics and
behaviors with considerable monitoring and directing
of salesperson behavior by sales managers
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Perspectives on Salesperson
Performance Evaluation
Outcome-Based Behavior-Based
¾ Little monitoring of people ¾ Considerable monitoring of
salespeople
¾ Little managerial direction
of salespeople ¾ High levels of managerial
direction of salespeople
¾ Straightforward objectives
measures of results ¾ Subjective measures of
salesperson characteristics,
activities, and strategies
Dimensions of Salesperson
Performance Evaluation
Behavioral
Behavioral Results
Results
Salesperson
Salesperson
Performance
Performance
Professional
Professional Profitability
Profitability
Development
Development
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Criteria for Performance
Evaluation
Behavior: Consists of criteria related to activities
performed by individual salespeople
• Sales calls,
• customer complaints,
• required reports submitted,
• training meetings,
• letters and calls
Professional Development:
¾ Assess improvements in certain
characteristics of salespeople that are
related to successful performance in
the sales job
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Criteria for Performance Evaluation
Results:
¾ Salespeople measured objectively based on results
such as – sales, market share, and accounts
Characteristics
• Role Planning Behavior
Salesperson Behavior
Perceptions and Control • Effort
Factors • Effort
• Aptitude Unit • Quality
• Quality
• Skill Level
• Motivation
Organizational Factors
• Marketing Effort
• Sales Management Effort
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Elements Important in
Assigning Sales Quotas
Elements Important in
Assigning Sales Quotas
¾ Sales representative’
representative’s past sales performance
¾ Extent of product line
¾ Financial support (e.g., compensation) a firm provides
¾ Relationship of product line
¾ Amount of clerical support
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Criteria for Performance Evaluation
Profitability:
¾ Salespeople have an impact on gross profits through
the specific products they sell and/or through the
prices they negotiate for final sale.
¾ Salespeople affect net profits by the expenses they
incur in generating sales.
¾ Criteria Examples
z Net profit dollars
z Gross margin per sale
z Return on investment
z Number of orders secured
z Selling expenses versus budget
¾ Job Relatedness
¾ Reliability
¾ Validity
¾ Standardization
¾ Practicality
¾ Comparability
¾ Discriminability
¾ Usefulness
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Performance Evaluation Methods
Graphic Rating/Checklist Methods
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Performance Evaluation Methods: Objective-
Setting Methods
¾ Links behaviors to
specific results
¾ Salespeople are used to
develop performance
results and critical
behaviors
¾ Positive feedback about
behaviors may be more
affective than positive
output feedback
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Performance Evaluation Bias
¾ Occurs when a manager’
manager’s
evaluation of a salesperson is
affected by considerations other
than the specified criteria
¾ Common sources of bias:
z Personal relationships
z Perceived difficulty of territory
z Outcomes (i.e., ends justifies
the means)
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Framework for Using
Performance Information
Evaluate Salespeople against Relevant Performance Criteria
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