PERSONAL SELLING:
EVALUATION 

John has just finished his first year at Acme Co.  He has the highest sales volume of anyone in the state, including some of the older, most experienced salespeople. 

Is John our best salesperson? 


BASES FOR EVALUATION
  • quantitative
  • qualitative

QUALITATIVE BASES FOR EVALUATION 
"subjective" measures 
  • cooperation
  • enthusiasm
  • aggressiveness
  • judgement
  • willingness to take responsibility
  • industriousness
  • emotional stability
These are very subjective in nature, but are used in jobs where there are few objective measures.  All of these could be used in recruiting salespeople before a sales manager has any objective bases for evaluation. 


QUANTITATIVE BASES FOR EVALUATION 
"objective" measures
  • objective or ratio bases
  • efforts or results bases

EFFORT-ORIENTED MEASURES 
"objective" measures of inputs 
  • number of phone calls made (to set up appointments)
  • number of sales calls made
  • number sales demonstrations completed
  • number of complaints handled
  • number of checks on reseller stocks
  • number of inquiries followed up

RESULTS-ORIENTED MEASURES 
"objective" measures of outputs 
  • sales volume
  • sales profitibility
  • number of new accounts
  • number of lost accounts
  • percent volume increase in key accounts
  • number of stockouts
  • number of customer complaints

RATIO MEASURES 
  • general

    • sales volume produced
      sales/time

    • gross margin on goods sold
      markup/cost

  • call activity

    • number of sales calls per day
      number of sales calls/number of days

    • batting average
      number of orders/number of sales calls
      number of telephone calls/number of appointments made

  • account development

    • new account ratio
      number of new accounts/total number of orders

    • order/cancellation ratio
      number of orders cancelled/number of orders taken


  • expenses

    • sales/expense ratio
      amount of expenses/sales volume
      amount of expenses/number of sales

    • cost/call ratio
      total cost/number of sales calls