Evaluating:

The purpose of conducting performance evaluation is to crosscheck whether the sales force activities are in alignment with organizational objectives. Evaluating the salespeople is an important process in the sales force management function. This process requires good feedback. Management gets information about salespeople in several ways. A company knowledgebase should include sales performance by individual salespeople. Feedback is an important aspect of formal evaluation, followed by mutually agreed remedies to problems. Benchmarking between salespeople is good where there is the ability to compare apples with apples in terms of such factors as territory size or numbers of active customers. 1) An important source of information is the sales report (including call reports and expense reports). Additions to this report can come from: a)Personal observation. b) Customer surveys. C) Talks with other salespeople. 2) Salespeople are generally evaluated on their ability to plan their work and work their plan. One of the most important responsibilities of sales managers is to evaluate the performance of the sales personnel. The performance appraisal period can become one of those times that a salesperson dreads, unless the appraisal is effectively conducted. Ineffective performance appraisal tends to become a time-consuming and unpleasant activity for the sales manager as well as the sales personnel. The factors affecting sales peoples' performance are many. Some of these are beyond the control of the individual, while some can be modified. Aspects like motivation, skill-set, job satisfaction, role perception, personal factors like age, sex, height, etc; the ego drive, and empathy towards the customers are inherent in the individual salesperson. Environmental and organizational factors, along with the different functions of sales management come under external factors. It is difficult for the sales manager to predict the influence of the external factors on the performance of the sales force. To measure performance, it is necessary for the sales manager to put in place a performance evaluation procedure. A proper evaluation process ensures that the organization is well managed. It also provides the sales personnel with information on their performance and gives recommendations for further improvement. Performance evaluation can also help in improving the relationships between the sales force and superiors by minimizing suspicion and improving interaction.

The performance evaluation process generally involves 5 steps:

1. The first step is to determine the factors that affect the performance of the sales force. 2. The next step involves the selection of criteria that will be used to evaluate the performance. 3. Step three involves establishing performance standards that can be used as a basis to compare the performance of the sales force. Step four involves monitoring actual performance. 4. The last step is to review and provide feedback to the sales personnel. Performance evaluation also helps to prepare a future action plan for the sales personnel and fulfill the organizational objectives. It exerts an influence on the mode of compensation, fixing of sales quotas, and decisions on the transfer or removal of the salesperson from the organization. In most organizations, it is the immediate superior or the sales manager who conducts the performance appraisal. The sales manager or the concerned person involved in appraising the sales force can take the help of quantitative or qualitative criteria. These are also termed the behavior and outcome components. Qualitative criteria include sales skills, territory management skills, personality traits, etc. The quantitative factors include the sales volume, average calls per day, sales orders, etc. The sales manager must ensure that the performance standards are set to compare and evaluate the actual performance of the sales force. 5. Many methods of performance evaluation have been developed over the years. Yet, there is no single method that can be considered ideal for all organizations. Some of the commonly used methods are essays, rating scales, rankings, management by objectives and behaviorally-anchored rating scales. Several modern methods like critical incident appraisal, work-standards method, family of measures, etc., have been developed to suit variations and other requirements. Finally, regular monitoring and review of the sales force activities is also necessary to ensure that the organizational activities are aligned to the sales plan.

Motivating: 3 major ways to motivate:

1.

Appreciation

Giving Recognition and Compensation is not the same as demonstrating Appreciation. Recognition implies personal performance. Appreciation requires a mutual understanding of the value of the personal performance as a contribution to the greater good of the organization. Once appreciation is measured in terms of benefit to the organization, then it becomes easy to identify how to express appreciation. Quite often, this expression of appreciation is bestowed in the form of training and development.

The contributions of a sales associate may be worthy of demonstrating appreciation, even when personal attainment has not achieved the necessary levels for recognition or compensation. 2.

Recognition

Give recognition for the attainment of personal goals. Recognition may be shared in the form of awards, certificates, or personal accolades. It may also be provided in the form of written communication. It is important to give team or group recognition when appropriate, just as it is important to provide individual recognition when appropriate. Recognition should be fair, balanced, and earned. When it is earned, it should not be forgotten. Verbal recognition is a nice gesture, but not a lasting one. If the contributions of the sales associate have had a significant benefit to the organization, and if the associate has achieved personal commitments, give lasting recognition in the form of a certificate or award. An award is a lasting reminder to the recipient, and to those individuals who may also want to receive one, that the organization recognizes and appreciates personal achievement. 3.

Compensation

Commission and bonus plans should be clear and easily understood. Commission, as pay for performance, should be realistic, even when it is treated as a 'stretch goal'. Putting It All Together Use a balanced approach of Appreciation, Recognition and Compensation to acknowledge, reward and motivate the sales force as an investment to growing revenue.

Need a systematic approach, must also satisfy non-financial needs:

Job security Working Conditions Opportunities to succeed Compensation packet that rewards quality salesmanship and extra effort Recognition of extra effort of sales force Make sure SR feel important Keep SR informed of company activities Make certain reps. believe in the company Goals must be realistic and achievable and changeable Determine what they want and give it to them Controlling and Evaluating Sales force performance

1. 2. 3. 4. 5. 6. 7. 8.

Common Tips to Motivate a Sales Team:

Create a clear sales plan Provide ample sales training Set achievable goals Empower your sales team Establish a solid base salary in addition to their commissions and bonuses Communicate frequently with your team and have an open door policy

Involve your sales team with setting quotas, sales plans, sales goals Set challenging goals Motivate with significant bonuses Established sales contests or sales games Provide sophisticated sales tools, from the best CRM, to marketing support, to internal support Grant sales awards, such as sales person of the month or sales person of the year Hire motivational speakers

Motivators: Positive Motivators: y y y y y y y Commission Recognition Acceptance Respect Trust Achievement Pride

Negative Motivators: y y y y Fear Revenge Obligation Social Comparison (one-up)

5 ways to provide a motivating environment: y y y y y Participation: involvement in decisions that affect the team Environment: climate for success, creativity Recognition: giving credit, praise, rewards Knowledge: having it, communicating it Style: use appropriate style for each situation: x coaching, supporting, delegating, directing

Controlling:
Like any other control system, sales control requires the establishment of standards, the evaluation of actual performance and the correction of deviation in performance. Sales control implies not only managerial action with regard to actual sales, but it also embraces all other Marketing functions required for the even flow of products or services form producers to consumers. All promotional and auxiliary efforts in marketing require as much control as the actual selling efforts demand. Nevertheless, control of promotional and auxiliary efforts in marketing is more difficult and cannot be exercised with that exactness which is possible in

case of actual selling efforts. Because of their intangible performances, ancillary activities in marketing are placed under some broad measures of control, and they are measured and appraised by managerial judgment, skill or experience. The basic tool for controlling these efforts is to be found in the sales expense budget . The basic tool for controlling these efforts is to be found in the sales expense budget. The development of a sales expense budget compels the managers to think analytically for including all possible selling expenses, to make marketing efforts more productive and effective, as well as to keep the marketing cost of products or services withing fixed bounds. For controlling performances of salesmen, the sales budget or in the asbsence of a sales budget, the sales programme provides the standard for control. Usually, the sales forecast is the first step in sales planning and contains goals to be achieved. These goals are subsequently translated into greater details and are incorporated in the sales budget, or in the sales programme. Final sales planning, whether through budgeting or programming, is the synthesis of a complex group of plans like objectives, policies and procedures in the sphere of sales. Thus performances of salesmen are measured and evaluated against the standards set up in the sales budget or programme. But in most cases, the standards are expressed in terms of money value or rupee figures of sales. Strictly speaking, effective control cannot be exercised in terms of rupee sales alone. The number of product units sold, the number of calls attended, the number of demonstrations give, the number of miles traveled of control. According to the nature of product and market characteristics, one or more control standard are to be used for apprasing the performances of salesmen. Salesforce Evaluation and Control: Measuring Results: The final function in the sales management process involves evaluating the salesforce. It is at this point that salespeople are assessed as to whether sales objectives were met and account management policies were followed. Quantitative Assessments. Called quotas, are based on input- and output-related objectives set forth in the sales plan. Input related measures focus on the actual activities performed by salespeople, such as those involving sales calls, selling expenses, and account management policies. Output measures often appear in a sales quota. A sales quota contains specific goals assigned to a sales person, sales team, branch sales officer, or sales district for a stated period. Behavior Evaluation. Behavioral measures are also used to evaluate salespeople. These include assessments of a salespersons attitude, attention to customers, product knowledge, selling and communication skills, appearance, and professional demeanour.