NATIONAL UNIVERSITY

PEDRO RUIZ GALLO

PROFESSIONAL SCHOOL OF MANAGEMENT

THEME:

Evaluation of the performance of the sales forces

SUBJECT:

Sales Management

PROFESSOR:

Silva Romero Elmer

STUDENTS:
Leonardo Neighborhood Festivals

Benites Benavides Anthony

Sánchez Zapata Paolo
Tacure Culquicondor Kenyi
CONTENT
PERFORMANCE EVALUATIONS OF SALES FORCESS ............................................................ 3
HOW CAN I EVALUATE VENDORS OR THE SALES FORCE? .................................... 4
Evaluation Criteria.................................................................................................................... 4
Quantitative assessment ............................................................................................................... 5
Qualitative assessment.................................................................................................................. 6
PERFORMANCE EVALUATION MONITORING SYSTEM ...................................................... 6
TYPES OF PERFORMANCE REVIEWS ......................................................................................... 7
DESCRIPTIVE COMMENTS. ................................................................................................... 7
GRAPHIC RATING SCALES........................................................................................... 8
RATING SCALE WITH CONDUCTUAL SEGMENTS.
 PERFORMANCE EVALUATIONS OF SALES FORCES
Performance evaluations of sales personnel should be a tool that allows for a
communication space between the Sales Manager and the Salesperson. This space must bring about
conclusion, the generation of enthusiasm for a future development of skills that lead to success
professional.

In order to conduct a successful evaluation, the Sales Manager must know the details of the
different performance measures and choose the most appropriate ones for your type of business. In addition,
they must carry out the evaluation in such a way that allows the seller to assert their strengths and
current efficiencies, and improve their performance in weak points.

The performance of a salesperson is currently a function of five factors:

How do you perceive your role.
Attitude.
Skill level.
Motivation.
Organizational and environmental variables.

The figure below presents an evaluation model involving the concepts of

behavior, performance, and effectiveness in sales.

Behavior refers to what sellers do, that is, the activities or tasks to
those who dedicate their efforts when they are working. These tasks include the visits.
to clients, preparation of quotes, receiving and managing purchase orders,
preparation of sales presentations, follow-up communications with clients, etc.
Performance refers to the contribution that the seller makes to corporate goals. In short
words, the conduct of a seller is 'adequate' or 'inadequate' in light of the goals of the
company.

Effectiveness refers to some indicator of organizational outcomes, of which the seller is

responsible, such as: (i) sales volume, (ii) market share, (iii) profitability of
its lines, (iv) creation and (v) customer retention.

The difference between performance and effectiveness is that the latter does not refer to behavior.
seller, but also considers aspects that are beyond the seller's control, such as
such as competitor actions, economic situations, market growth, etc.

HOW CAN I EVALUATE THE SELLERS OR THE SALES FORCE

SALES?
Performance evaluations of the sales staff should be a tool that allows for a
communication space between the Sales Manager and the Seller. This space must bring as
Conclusion, the generation of enthusiasm for a future development of skills that lead to success
professional.

The objective of the sales force evaluation is:

Evaluate the strengths and weaknesses of each seller: capitalize on the strengths and the
Weaknesses must be corrected through training and firmer supervision.
This means that one of the objectives of performance evaluation is to provide
guidelines for training and improving the performance of each salesperson.
Evaluate the performance of each seller to incentivize them: it means checking their merits.
each seller to reward him through remuneration, either by granting him a
award or a salary incentive.
For the evaluation of the salespeople, it is possible to take into account the sales report or sales report of
each seller, the sales performance (where the obtained sales are compared with the
expected), the report presented by the leaders or supervisors, the surveys conducted with clients,
the conversations with other sellers, etc.

And on a broader level, it is also possible to evaluate the performance of the sales force of
manera global, por ejemplo, si está logrando los objetivos propuestos, si está trabajando bien con
other company teams, if the costs incurred compensate for the results obtained, etc.

Evaluation criteria
Regardless of the criteria used, it must be clear, known, and accepted by the entire team.
of sales. It is advisable to combine an evaluation scheme that measures qualitative aspects and
quality of results to set the performance of the salespeople, as one cannot upset...
one from another only by their sales number; since if the focus were purely quantitative,
The overall perspective of the business is lost, as sales would likely be declining.
focusing on certain key people in the business, or on the pure action of the market, where
buyers buy, more than the company sells its products. And if the approach is
based solely on the quality of results, it is most likely that the perspective of the
business results.

The aforementioned details the evaluation criteria:

Quantitative evaluation
Quantitative performance measurements focus on what sellers do. It is related to
with the type of sales being made, the type of client being visited, or the objectives that have been set
determined for their work during the period, these objectives are related to the quantity that is
produce in sales.

These types of evaluations constitute a recognition of the entire sales process. There are three
types of variables to measure subjectively, which are made up of different
components of the commercial process:

Evaluation of results
Some criteria that evaluate the 'Quantity' of the results are:

Number of purchase orders per period of time. Assess the closing capacity of the
sale.
Average size of purchase orders.
Number of clients or accounts, assesses the coverage of the territories, and ensures equity in
the distribution of the same.
Number of active customers.
Number of new customers.
Total sales volume
Achievement of objectives, results of the period vs. objectives of the previous period
Growth; Current period sales / sales of the previous period
Territory share; participation in # of companies in the total market
Penetración; Evolución de la cuota del territorio del vendedor
Compliance with promotions; Results in promotions vs. promotion objectives

Evaluation of indicators
The company must define sales management indicators. These indicators are the result of the
combination of effort evaluations and results. Below are some
examples:

Number of visits per days worked.

Number of quotes prepared per visits made.
Sales generated to each customer.
Increase in sales generated to each customer.

Assessment of efforts
Number of visits made in a period of time. Allows for evaluating the coverage of
territory. In addition, it allows evaluating the efficiency of time utilization.
Visits should be classified as planned and unplanned.
Number of quotes made. Evaluate the effectiveness of the visit process, from its
identification up to the presentation of the company.
 Expenses generated in the commercial process.
Different sales activities. These depend on the type of business, but we can
highlight some examples; Restocking shelves in supermarkets for
distributors to retailers, training sessions for end customers, when it comes
from a technical sale, Number of meetings with sub-distributors when the structure of
Sales are structured this way: proper management of portfolio accounts.

Qualitative assessment
Qualitative or subjective measurements reflect how well things are done by the
seller from a behaviorist point of view. With this criterion, the seller is evaluated from the
perspective of their skills, commitment, initiative, vocation, etc. Some of the aspects to
to determine through this type of evaluation are:

Sales: new clients, development of the entire product line, development of new ones
market segments.
The domain of the position: to be well acquainted with the company's portfolio, internal policies,
prices, etc.
Territorial Control: planning of sales activities, organizing the agenda of
visits, expense control, completion of reports.
Customer relationships: good treatment, affinity, CRM.
Personal qualities: initiative, leadership, personal presentation, language used, use
potential of the resources available.

PERFORMANCE EVALUATION MONITORING SYSTEM

Every organization has some kind of performance evaluation monitoring system.
(SMED). In smaller companies, this system can be largely informal and based on the
firsthand observations from the supervisors. As the organization grows, the
managers are less able to closely supervise the daily activities of each employee, because
what becomes a more formalized SMED. Companies have very different approaches to
SMED. However, most companies try to quantify observations and the
managerial criteria based on performance results, behavior or characteristics
personal.

In the obsessive drive to develop measurable metrics, many organizations lose sight of
See what they want SMED to do. Performance evaluation systems must do three things.
Essential things for the sales manager and salespeople:

Provide feedback to each seller about their individual performance in the

work.
Help sellers modify their behavior towards achieving work habits
more effective.
Provide information to the sales managers on which to base decisions about the
promotions, transfers, and compensations of the sellers.
These are the successive stages for the effective implementation of a SMED:

1. Performance planning. This is probably the most important phase of SMED.

because it allows the seller to obtain advice from the sales manager to decide on three
cuestiones clave: "¿Hacia dónde voy?" "¿Cómo puedo llegar ahí?" "¿Cómo se me evaluará?"
2. Performance evaluation. A continuous interpersonal process through which managers
sales provide individual sellers with immediate feedback on each
task, project or specific objective achieved. In their supervisory role, managers of
sales should provide some kind of recognition, praise, correction or
Comment on the performance of any salesperson.
3. Performance review. A periodic review of the previous evaluations of the
performance to summarize where the seller is in their personal development. It should
respond to the question 'How am I doing?' and lead to the next stage of
performance planning.

Even when the three stages of SMED overlap with each other, sales managers should not
assuming that all three can be managed simultaneously once a year, in evaluations
performance standards. Performance planning sets objectives and plans for
reach them and explain how the individual will be evaluated. A well-structured APO program
it can be invaluable at this stage.

Performance evaluations are daily mini-assessments of specific performances.

performance review is a periodic summary of these daily assessments of such
so that the seller can see where they are.

TYPES OF PERFORMANCE REVIEWS

Periodically, sales managers should be required to summarize the performance of each
seller in a permanent record for the benefit of the seller by tracking their progress and for
the review of other sales and marketing managers. While various types of forms are used
rating, three popular ones are descriptive comments, graphic rating scales and the
behavioral rating scales grounded.

DESCRIPTIVE COMMENTS. Descriptive comments are generally used

together with some form of graphical rating scale and, when referring to a seller, they can
give short answers to a series of specific criteria such as job knowledge, the
territorial administration, customer relations, personal qualities or results
of sales. Another approach used by various organizations (including the military) requires a
general representation of the individual's capabilities, potential, and specific performance during
the marking period. This essay-type evaluation supports and must be consistent with the
quantitative ratings on different performance criteria. A huge problem with the
descriptive comments are their subjectivity, both in writing them and in interpreting them, and many
Sales managers fall into a predictable pattern of being too tough, too consistent
or too neutral in their comments, so that the evaluation is not accurate.
balanced. Furthermore, many evaluators simply are not capable writers, so their
The use of words may not provide an accurate representation of the seller. All
Sales managers require specific training for performance evaluation, in
especially when they use descriptive comments.
GRAPHICAL RATING SCALES. Numerous formats can be considered for this.
type of rating, but in all cases the sales manager must assign an individual a
scale value on various characteristics, skills, or outcomes related to sales.
Two devices that are generally used to do this are the semantic differential scale.
and Likert type.

The semantic differential uses bipolar extreme adjectives; several scale segments,
generally five or seven are determined on the scale. The seller is rated in relation to a
quality just like product knowledge and is given a scale value from a low number
from 1 (poor) to a high of 7 (excellent).

Likert scales. They provide a segment for rating oneself on each statement, thus the
The sales manager can select the most appropriate one that applies to the seller.

RATING SCALE WITH BEHAVIORAL SEGMENTS.

To build BARS with a sales orientation, there are four basic steps:

1. Identification of critical incidents. Some sales managers, salespeople, and customers are asked
that describe some specific critical incidents of effective and ineffective behavior in the
sales performance. When an individual identifies a critical incident, they are asked to
provide a real example. These critical incidents are condensed below into a number
smaller than performance categories. Kirchner and Dunnette obtained more than a hundred incidents.
critics for a sales job were reduced to thirteen performance dimensions of
sales.

2. Refine critical incidents into performance dimensions. Sales managers and the
sellers who develop performance evaluation analyze the small set of
critical incidents and then refine them into an even smaller set of dimensions
of performance (generally from five to twelve) that are defined in general terms. Below,
the critical incidents are provided to another group knowledgeable about vendors, to whom it is requested
that they assign the incidents to the appropriate performance dimensions. In general, it is retained a
incident for the BARS final if 60% or more of the second sales group assigns it to the same one
dimension than the first group.

3. Assess the effectiveness of the described behaviors. The second sales group is asked to
rate (generally on a scale from zero to ten) the behavior described in the
critical incidents regarding how accurately a performance level represents in the
dimension, Such incidents that have the smallest standard deviations (which indicate a greater
agreement among the assessors) are maintained for the final BARS.

4. Selection of a set of incidents as behavioral anchors for the dimension of

performance. In general, six to eight critical incidents are selected to be used as anchors
behavioral for each performance dimension. The final BARS consists of vertical scales, a
for each dimension to be evaluated, anchored with the retained incidents. While time is required to
developing a true behavior rating system allows for more accurate ratings
of the performance behaviors of the salespeople.