How to measure overall performance of the sales manager or executive?

It is important for the HR of any organization to carry out performance evaluation of each and every working employee including the sales force for various reasons. Quantitative measurements meant for sales managers and executives are given below (appropriateness is likely to depend upon the individual’s title or role).

Know the quantitative measurements for performance evaluation of sales workforce

  • Annual sales quota for the territory/region, percentage when compared to other territories/regions and others. The sales quota performance of the individual does offer sufficient knowledge about his sales performance. It is essential to note how each person has been performing, the overall regional performance, etc.
  • Account call numbers, accounts managed: Sales personnel are to be measured on how well the accounts are managed and handled. One person may have good quota, however, with just a single account vs. another person with numerous accounts and having equal good quota. It is to find whose performance is better.
  • Managing expenses: Good people who exceed their quotas will be great. However, they are also to be profitable. The individuals are to be set goals to control and manage expenses associated with their job. For example, sales venues, demos, travel and marketing programs.
  • Services and products sold per goals: Portfolio to revenue balancing not only helps the sales person, but also offers competitive benefits in the marketplace.
  • Geographic coverage and account density: Account coverage is to be factored for getting quota/account ratio. It will help recognize those individuals striving to develop accounts and revenue to enjoy future rewards.
  • New opportunities/new accounts: Re-occurring revenues are really great. However, a good sales executive is one who is required to develop ‘next’ customer group. It is crucial to increase existing base and to open up new markets.

Qualitative measurements

Sales performance evaluation should also check out the qualitative features of the sales personnel.

  • Coming up with creative and innovative ways to sell to different accounts: The sales personnel are the best resource as he is the one in the front line dealing with the customers. Case studies, brochures can all be written, but the best promotion is considered to be the highly energized sales person exuding enthusiasm.
  • Training and recruiting others: Sales people are considered to be critical resource and demand high salary. Hence, it becomes crucial to train the individual which is regarded to be a key component to achieve success in sales.
  • Being motivated and motivating others: The attitude of the sales executive is termed to be the company’s reflection. Hence, the sales appraisal needs to have the factor to make the person to have a positive image and confident looking,
  • Leadership/role modelling: From the customer’s view point, sales are a focal point. Hence, performance is to include how the sales executive is being seen by the clients, follow sales management and sales executive.

The above are few of the parameters that need to be taken into account by the HR to ensure that the best sales executives are employed with the organization and to evaluate from time to time their overall performance.