Sales effectiveness: Difference between revisions

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# Sales ($) / [[Buying power|Buying Power]] ($)
 
"These formulas can be useful for comparing salespeople from different territories and for examining trends over time. They can reveal distinctions that can be obscured by total sales results, particularly in districts where territories vary in size, in the number of potential accounts, or in buying power. These ratios provide insight into the factors behind sales performance. If an individual’s sales per call ratio are low, for example, that may indicate that the salesperson in question needs training in moving customers toward larger purchases. Or it may indicate a lack of closing skills. If the sales per potential account or sales per buying power metric is low, the salesperson may not be doing enough to seek out new accounts. These metrics reveal much about prospecting and [[lead generation]] because they’re based on each salesperson’s ''entire'' territory, including potential as well as current customers. The sales per active account metric provide a useful indicator of a salesperson’s effectiveness in maximizing the value of existing customers. Although it is important to make the most of every call, a salesperson will not reach his or her goal in just one call. A certain amount of effort is required to complete sales."<ref name=Marketing_Metrics /> Churchil published research work on “the determinants of salesperson performance”, and the antecedents of sales performance is based on the meta-analysis for the period 1918- 1982 (76 years of previous research work).<ref>{{Cite journal|jstor = 3151357|title = The Determinants of Salesperson Performance: A Meta-Analysis|last1 = Churchill|first1 = Gilbert A.|last2 = Ford|first2 = Neil M.|last3 = Hartley|first3 = Steven W.|last4 = Walker|first4 = Orville C.|journal = Journal of Marketing Research|year = 1985|volume = 22|issue = 2|pages = 103–118|doi = 10.1177/002224378502200201|s2cid = 144335826}}</ref>
The author suggested five factors that influence a salesperson’s job behaviour and performance along with different categories like skill level, role perceptions, motivation, aptitude, personal factors, and organizational factors with three moderators.<ref>{{Citation|last1=G. A. |first1=Churchill|last2=Ford|first2=Jr.|last3=Steven|first3=N.M |last4=O.C|first4=Walker |title=The determinants of salesperson performance: a meta- analysis|year=1985|journal= Journal of Marketing Research|volume=22|issue=2|pages=103–118|doi=10.1177/002224378502200201|s2cid=144335826}}</ref>
 
==Cross Functional Sales Performance Factors==
There are several cross-functional sales performance factors which affect the overall company sales performance. Cross-selling service climate provides very important boundary condition which affects both its formation and its impact on service sales performance.<ref>{{Citation|last1=Yu |first1=Ting|last2=Ruyter|first2=Ko De|last3=Patterson|first3=Paul|last4= Chen|first4=Ching-Fu |title=The Formation of a Cross-Selling Initiative Climate and Its Interplay with Service Climate|date=16 October 2018|journal=European Journal of Marketing|volume=52|issue=7/8|pages=1457–1484|doi= 10.1108/EJM-08-2016-0487|url=http://openaccess.city.ac.uk/19088/1/Yu%20et%20al.%202018.PDF}}</ref> Organizations facing increasing complex customer requirements.<ref>{{Citation|last1=Zang |first1=Zhimei|last2=Liu|first2=Dong|last3=Zheng|first3=Yaqin|last4= Chena|first4=Chuanming |title=How do the combinations of sales control systems influence sales performance? The mediating roles of distinct customer-oriented behaviors|date= January 2020|year=2020|journal=Industrial Marketing Management|volume=84|issue=1|pages=287–297|doi= 10.1016/j.indmarman.2019.07.015|s2cid=202362575 }}</ref>
Most of the salespeople globally do not achieve their targets. A salesperson is the only direct link between customer and company.<ref>{{Citation|last1=B |first1=Krishnan|last2=R|first2=Netemeyer|last3=Boles |first3=J. |title=Self–Efficacy, Competitiveness, and Effort as Antecedents of Salesperson Performance|date=14 October 2013|journal=The Journal of Personal Selling & Sales Management|volume=22|issue=4|pages=285–295}}</ref>
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==References==
{{Reflist}}
{{dual|source=''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance'' by Farris, Bendle, Pfeifer and Reibstein|sourcepath=https://books.google.com/books?id=7Ptw4nBoGmkC&printsec=frontcover&dq=Marketing+Metrics:+The+Definitive+Guide+to+Measuring+Marketing+Performance&hl=en&sa=X&ei=Uj18T-6LKtH6ggekmYTZCw&ved=0CDkQ6AEwAA#v=onepage&q=Marketing%20Metrics%3A%20The%20Definitive%20Guide%20to%20Measuring%20Marketing%20Performance&f=false|date=April 10, 2012}}
 
[[Category:Promotion and marketing communications]]