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"We would like to thank you for your presentation at our recent conferences sponsored for our distributors. The content was outstanding and right on target!"
Hewlett Packard

Quality Counts
Establishing a clear understanding of what is good productivity is as important to the selling profession as it is to any production department. Quality control means that sales representatives themselves have a responsibility to maintain the quality of their selling skills. Specifically, they must track, measure, and monitor their sales techniques, and fine-tune the training they have received in identifying and satisfying customer needs.
In almost every other business discipline, the quality of the product or service together with the quality of the individual's skill, is tracked and monitored closely. In the selling function, unfortunately, there usually is only a simplistic recording of the sales volume produced and little attention is paid to how the sales total was attained or how much was left behind because of poor selling skills.
It is time to get away from measuring sales performance by dutifully logging dollar volume sold, or by counting the earnings of a sales representative. Today's salesperson has the following indicators or quality controls that must be monitored continually:
Annual Sales Objectives (Dollars):
Although yearly goals are used at a number of companies, many persist in emphasizing weekly or monthly objectives. Under these conditions, salespeople migrate to the smaller accounts in hopes of generating some volume so they can report a success on Friday or at the end of the month. Greater productivity occurs when management stresses the total annual objective, and results are discussed in terms of percentage of the annual goal.
Annual Sales Objectives (Units):
Measuring sales performance in terms of dollars actually provides false criteria. If prices are increased, theoretically, fewer items could be sold, or market share lost, even though dollar volume has increased. That is poor quality control.
Product Mix Goals:
A good sales representative does not wait until year's end to see what he has sold. That should be a pre-planned objective. At the start of the year, the salesperson lists every product in his line and establishes mandatory goals for each one. Attaining objectives by moving on 20% of the product line is a luxury few sales organizations can afford.
Class-of-Trade Objectives:
It is even more important to determine ahead of time the channels through which the goods will be sold. Top salespeople annually list the key types of businesses (classes of trade) in their market. Then they set goals for a specific percentage of their annual dollar volume to be generated from each class of trade. It is a form of market penetration that is the responsibility of the salesperson.
Margin or Share-of-Market Goals:
If share of market can be tracked, measure it. If it can't, then establish margin objectives for the sales team. These are commitments from the salespeople as to how much of their annual sales objectives will be sold at "standard rates or pricing." How much will be targeted at 5% below standard rates, and how much -- perhaps even 5% -- above published price lists? How much, if any, has approval for discounts of 10% or 15%?
Selling Skills Standards:
What are the basic skills necessary for selling effectiveness in the industry? Planning? Then determine a standard for daily, weekly, monthly, or quarterly itineraries -- with no excuses. Prospecting? Set a level for the percentage of time that each sales representative will spend calling on completely new accounts. Selling skills? There should be a systematic campaign to wean people away from being product-oriented peddlers and encourage them to be sales counselors. Selling-tool usage? Time and territory management? Administration? Again, what are the skills that are mandatory for selling effectively in the industry? Set the standards for each skill with every salesperson on an individual basis. That's quality control in sales!
© The Beveridge Consulting Group, 2002 All Rights Reserved.
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