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"Sales persons predominant on field are like doctors following up the health of customer."
In every aspect, they track customer's disease symptoms. Here the tracked is not only customer's financial status. They also observe customer's product need, customer satisfaction for business and product, deficiencies in service, price expectations. They take the pulse and temperature at these and similar locations with leading indicators before disease, and share the results with business' related departments. They make effort to take precautions and to ensure constant happiness. Sales organization is the artery feeding the business via customers. These arteries, for any reason, become inadequate, business may lose its life. There are many different reasons for sales department having insufficient performance. These reasons should be analyzed and treated well.
Generally, premium system is applied to motivate the #sales staff and to increase their performance. If criteria of premium system are not described as required, sales staff gets high premiums but business makes loss. Here, win-win situation should be described well and fair for everyone. The considerations in sales premium criteria:
They should not only define the sales volume target.
There should also be sales turnover as well as sales volume.
Turnover target should be supported with gross profit ratio.
Turnover increases should be treated with inflation ratio but not based on net increase.
The products with low profitability ratio and the ones with high profitability ratio should be in same product basket.
Sales revenue receipt days number should be taken into account pf premium.
The spare part ratio to be given for free should not be out of business criteria within sales contracts.
Service failure ratio and epidemic failure ratio should not be higher than market's acceptable levels.
Apart from the selling to existing customers, gaining new customers should book added value to performance account.
Self-assessment report related to the reasons of losing customers each year should be prepared by responsible sales person objectively and submitted to those concerned, and required precautions should be taken.
While gaining new customers, decrease in the number of old customers, in other words, customer loyalty should be tracked.
Logistics, freight costs and type of delivery should be described in sales contracts clearly.
The methods related to determining the transport damage being caused by package or by transport and storage should be described well in sales contracts.
Above criteria may be detailed more. 'I only make sales and beyond is not my task' approach harm the business.
In institutional and mature businesses, the managers leading the sales unit and the business leader should clarify this considerations in written. "The business being a family," "the need to think business' profit as a whole," "not only sales turnover but also the total value brought to the business being have to be shared equally" should be explained to sales team. When reviewing targets for the end of year and the actual realizations, the reasons of missing the targets should be analyzed well, changes ins market and environment conditions should be checked. If the reason is a person, he should be warned, and if problem still exists required changes should be applied.
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