Measuring Sales Effectiveness

Most sales managers use simple sales revenue to measure the performance of individuals on their work force. If the numbers are good, they assume high performance. Conversely, if the numbers are bad, the salesperson must be ineffective. But, if you have salespeople working well-balanced territories, there is a better way. Sales territory management experts say to set up sales quotas per territory and then analyze the data over a period of time.

It is all about coaching sales team members with equal sales opportunities to perform at their best for your customers. Here is how it can work…

Two salespeople bring in the same revenue but one is following the proven sales process and one is not. Maybe the sales quota for the maverick salesperson is too low or the territory is too easily productive. Adjust the quota or the territory and then coach your maverick to follow the process that has worked successfully for the company. Two possibilities: the salesperson follows your coaching and reaches the corrected norms or not. If not, there may be a replacement needed.