Being a sales manager is a tough job. They are responsible for leading their sales team to successful performance.
Many manager competencies are required:
Selling has become increasingly complex over the last 20 years. That is why Sales Manager Performance Assessments are needed. There are hundreds of factors that affect sales performance. How effectively can your Sales Manager discuss each of the Key Sales Performance Drivers that have the biggest impacts?
The number of units sold multiplied by price. It represents the starting point for a company to determine net income.
The average profit generated from the sale of a product or service.
A written plan that lays out the goals, objectives, tactics, targets and potential obstacles.
A pricing method that involves setting your prices in relation to the prices of your competitors.
The total number of days needed to close each sale added together then divided by the number of sales.
The average customer’s revenue generated over their entire relationship with the company.
The sales revenue generated by each salesperson during a specific period of time. The sales revenue of each rep can be added together then divided by the number of reps to determine average sales per rep.
A prospective customer that has been researched and vetted.
The average cost of marketing to acquire one new prospect.
The number of deals closed divided by the number of formal price quotes.
The percentage of existing customers who remain customers after a specific period of time.
The specific reasons that prevent a customer from buying.
The specific tactics used to overcome specific objections.
A simple statement that summarizes why a customer would choose your product or service.
A specific sales approach where the sales reps act more like advisors than salespeople, where they recommend specific solutions to potential customers based on the customer’s needs and problems.
The individual who has final decision-making authority over the purchasing decision.
Positioning based on product or service attributes. Positioning based on Price (e.g. discounts). Positioning for a specific use. Competitive positioning.
Referrals are a key sales performance driver that can make or break the business. The sales manager should monitor the number of referrals generated. If you are getting referrals where do they come from and how can you ensure you keep getting them?
Price is likely the most important of all the sales performance drivers. Price has a direct impact on profit, every extra dollar you make goes straight to profit. Evaluating pricing is a key part of any sales strategy.
Average sales rep turnover is about 35 percent. The cost of turnover is typically estimated at 1.5 times annual compensation. It is also estimated that is takes about 6 months for a new sales rep to ramp up to full productivity. Sales rep turnover has a big impact on the bottom-line.
Contact us for Sales Manager Performance Assessments.
Also, check out the blog How to Interview and Hire Your Next Manager for the Top 25+ Questions You Should Ask to hire a great manager.