Performance Evaluation
Quantitative
o
Objective and standardized + Easier to use
Qualitative
o
o
o
o
o
Focus on Quality not quantity
Often ambiguous
Allows use of personal biases
Should accompany quantitative measures
Other requirements
Standardized form
Consistent over time
Used for the entire sales force
Techniques for Qualitative Appraisals
Behaviorally
Anchored Rating
Scale(BARS)
Checklist Scale
o
o
o
o
o
MBO
o
o
o
Each point on a scale is labeled with a different
description of behavior
Often a dozen or more scales
More of a standardized 5 or 10 point scale
Usually has more scales
Goal setting and evaluation process
Mutual goals
Periodic reviews
Evaluation based on each goal
Effectiveness versus Efficiency
Effectiveness
o
o
Effectiveness is a function of
Territory Objectives
Resources allocated to that territory
Salesperson's performance
Measure actual sales against potential, quota or objectives
Efficiency
o
o
Profitability of a territory
Time, effort and money invested to get sales
Ratio analysis - various ratios are used as a measure of efficiency
Expense/Volume (E/V)
Profit/Volume (P/V)
predicts the effects of sales on profits
predicts the number of sales needed to offset rising expenses