I mean to know how to calculate productivity for an Area Sales Manager. What will be the factors and subfactors contributing to it? Moreover, how to take all those factors into consideration for calculating the productivity. Please shed some light on it.
From India, Delhi
Acknowledge(0)
Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
Dear Lucky,
You could have given complete information. Are you a student or a professional? If the latter, then what is your designation? What is the nature of your industry? What is your finished product or service? How many sales managers report to the Area Sales Manager (ASM)? What is the geographical spread of the customers? Is the product exported as well? What is the involvement of wholesalers or retailers in the sale of your product? The delivery of the finished product also depends on the timely procurement of the raw material. Therefore, where are the suppliers of the raw material located? Do you have overseas suppliers?
If you are from the service industry, then different parameters come into the picture.
Replies to these questions are necessary as productivity would differ from one industry to another. For example, though a steel manufacturing company and a garment manufacturing company both belong to the "manufacturing" category, their dynamics are different.
Moving further, have you trained your salespersons? If given a chance to handle a particular sales call, will the sales call be handled exactly in the same fashion by 10 salespersons? I ask this question because to improve productivity, you need to have a well-researched, customized sales process. Training should be conducted on this formal sales process.
How do the salespersons maintain the records of their sales calls? I mean to say, have you designed a formal "Sales Call Evaluation Sheet"? If yes, have you studied these sheets? If yes, then could you draw a specific pattern in the category of sale?
Do you have a marketing department? What inputs do they provide to the sales department? Do you study your competitors? If yes, then how? Do you have budgetary allocations for "Market Research"? What is the brand image of your company in the market? What market share do you have? How many inbound queries do you get from your customers for the purchase of your product?
What is the attrition rate of salespersons in your company? How do you recruit your salespersons? What are the recruitment standards? Have you trained the staff who are involved in recruitment in "Interview Handling Skills"?
How often do top management personnel accompany salespersons for the sales call? How does top management record their observations on the quality of the sales call?
Has the product been designed after sufficient market research? Has the product been copied from the competitors? What is the quality of the product? What is the product failure rate? Do the salespersons have complete faith in the product? If yes, then how do you assess it? Do you have an after-sales service department? How do you measure the turnaround time for technical faults?
There are so many questions, gentlemen/ladies. Productivity is a complex issue. It cannot be generalized in just 1-2 points.
I ask these questions because I conduct training on "Effective Selling Skills." Click on the hyperlink to know more about it.
Thanks,
Dinesh Divekar
Bangalore - 560092
"Beware of false knowledge; it is more dangerous than ignorance."
From India, Bangalore
Acknowledge(0)Amend(0)
8219You could have given complete information. Are you a student or a professional? If the latter, then what is your designation? What is the nature of your industry? What is your finished product or service? How many sales managers report to the Area Sales Manager (ASM)? What is the geographical spread of the customers? Is the product exported as well? What is the involvement of wholesalers or retailers in the sale of your product? The delivery of the finished product also depends on the timely procurement of the raw material. Therefore, where are the suppliers of the raw material located? Do you have overseas suppliers?
If you are from the service industry, then different parameters come into the picture.
Replies to these questions are necessary as productivity would differ from one industry to another. For example, though a steel manufacturing company and a garment manufacturing company both belong to the "manufacturing" category, their dynamics are different.
Moving further, have you trained your salespersons? If given a chance to handle a particular sales call, will the sales call be handled exactly in the same fashion by 10 salespersons? I ask this question because to improve productivity, you need to have a well-researched, customized sales process. Training should be conducted on this formal sales process.
How do the salespersons maintain the records of their sales calls? I mean to say, have you designed a formal "Sales Call Evaluation Sheet"? If yes, have you studied these sheets? If yes, then could you draw a specific pattern in the category of sale?
Do you have a marketing department? What inputs do they provide to the sales department? Do you study your competitors? If yes, then how? Do you have budgetary allocations for "Market Research"? What is the brand image of your company in the market? What market share do you have? How many inbound queries do you get from your customers for the purchase of your product?
What is the attrition rate of salespersons in your company? How do you recruit your salespersons? What are the recruitment standards? Have you trained the staff who are involved in recruitment in "Interview Handling Skills"?
How often do top management personnel accompany salespersons for the sales call? How does top management record their observations on the quality of the sales call?
Has the product been designed after sufficient market research? Has the product been copied from the competitors? What is the quality of the product? What is the product failure rate? Do the salespersons have complete faith in the product? If yes, then how do you assess it? Do you have an after-sales service department? How do you measure the turnaround time for technical faults?
There are so many questions, gentlemen/ladies. Productivity is a complex issue. It cannot be generalized in just 1-2 points.
I ask these questions because I conduct training on "Effective Selling Skills." Click on the hyperlink to know more about it.
Thanks,
Dinesh Divekar
Bangalore - 560092
"Beware of false knowledge; it is more dangerous than ignorance."
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Shalini,
It appears that you have provided measures of productivity for call center agents. However, I doubt call centers have an ASM. Above all, you could add one more productivity measure, i.e., acquisition within the average turnaround time and above that.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
It appears that you have provided measures of productivity for call center agents. However, I doubt call centers have an ASM. Above all, you could add one more productivity measure, i.e., acquisition within the average turnaround time and above that.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Shalini,
This is in addition to what I have written in my earlier post. To measure productivity, you have given one of the measures as "What is the cost of each client acquisition?" However, I would like to ask in this connection on what parameters do you measure the "cost"?
To measure the cost, you should include the total cost to run the company divided by the number of new accounts brought in (or units sold). However, most of the BPOs are private limited companies, and which private limited company's owner discloses the total expenditure figure? Therefore, this measure of performance is valid only for the public limited companies.
If you include only the salary and overheads of the sales staff, then it would give a flawed figure and it would be a flawed measurement too.
I will be thankful to you if you provide your comments on my viewpoint.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
This is in addition to what I have written in my earlier post. To measure productivity, you have given one of the measures as "What is the cost of each client acquisition?" However, I would like to ask in this connection on what parameters do you measure the "cost"?
To measure the cost, you should include the total cost to run the company divided by the number of new accounts brought in (or units sold). However, most of the BPOs are private limited companies, and which private limited company's owner discloses the total expenditure figure? Therefore, this measure of performance is valid only for the public limited companies.
If you include only the salary and overheads of the sales staff, then it would give a flawed figure and it would be a flawed measurement too.
I will be thankful to you if you provide your comments on my viewpoint.
Thanks,
Dinesh Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Hello, As an intro, I am a Summer Intern at Samsung, and I am working on designing a Productivity Model for an Area Sales Manager. I am working on the Appliance making segment at Samsung, i.e., the one responsible for making washing machines, refrigerators, ACs, etc. So, my exact task is to demystify all those factors and sub-factors that can affect the productivity of an Area Sales Manager and then come out with a standardized productivity model. Further, I need to provide certain calculations based on that model and the parameters taken into account to calculate the productivity. I need to do it for both the sales and the services part, but mainly, I need to concentrate on the sales area. Kindly tell me if you have more information.
Yes, I do agree that it is a complex issue. But given the scope of my organization and reach, can you now help me or provide me with a structured approach of how to proceed? Thanks in advance.
From India, Delhi
Acknowledge(0)Amend(0)
Yes, I do agree that it is a complex issue. But given the scope of my organization and reach, can you now help me or provide me with a structured approach of how to proceed? Thanks in advance.
From India, Delhi
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
SALARY SHEET CALCULATION.xls