Get the most out of your sales force

To help the sales executive in this dilemma, a study was conducted with the idea that the findings would give the right direction.

The following measurements were derived for each of the responding organisations.

| Turnover rate | Performance index | Compensation rates

| Span of control | Opportunity rate | Earnings opportunity ratio (EOR)

The eight major findings from the digested data revealed

1. Turnover rate does not directly influence its performance index
2. A turnover rate of 10% or more is excessively costly in all classifications and should be avoided if possible
3. The turnover rate is directly influenced by the opportunity rate.
4. Turnover is also directly influenced by compensation level
5. The performance index is also directly influenced by the character and effectiveness of the reporting system used to control the force
6. Average chronological age differs among the four sales force classifications, but for each classification, there is an optimal average age
7. Job content is a critical factor affecting performance and turnover
8. Compensation level does not directly influence the performance index, although the method of compensation does.

The four basic kinds of selling and the kind of men needed for each and how the executive needs to manage his men are elaborated. For Example

Trade Selling

The primary responsibility of the trade sales force in to build up the volume of a company’s sales to its customers by providing them with promotional support. This essentially amounts to improving the distribution channels. The trade sales force therefore ‘sells through rather than ‘sells to its customers.

Much of this kind of selling is low key, the trade salesman needs to be helpful, persuasive and must thoroughly understand how the customer runs his business. Aggressiveness is less important than maturity and technical competence is less important than “wearing well with customers.” The trade sales executive therefore ought to give considerable thought to jobs content. Any action which will reduce the drudgery of stock taking and order taking and remove the sales man’s lurking feeling that he is nothing but a pawn in a giant chess game, will improve performance and reduce turnover.

Some of the guidelines that the author elaborates for the trade sales executive:

1. Transfer salesmen among territories as infrequently as possible
2. Design sales call patterns so that the salesman feels he is making important sales related calls and not merely putting in appearances for the sake of company’s image.
3. Avoid asking the salesman to peddle “easy to buy products”
4. Use company contacts to seek and hire salesmen in their late thirties.
5. Avoid asking for reports except those that are critical to control sales force behaviour

Similarly, Missionary selling, Technical selling and New Business selling are analysed in depth to some extent. Every sales organisation is a hybrid of the four main kinds of selling and the executive who wants to take practical advantage of the findings of this study may have to balance his practices to set the mix of roles he must administrate.

From HBR article by -Derek A Newton