Posted by: Bill von Achen | December 29, 2009

Managing Salespeople Without Sales Quotas

The standard approach of using sales quotas to measure and reward sales representatives may motivate them to close as much business as possible. However, such a singular focus can often undercut efforts to support other corporate objectives (such as more profitable business, improved levels of customer service, etc.).

So in what other ways can a company measure and reward the performance of its sales force? From Sales & Marketing Management Magazine, here are four alternative methods that may help to better ensure alignment of sales efforts with larger company objectives:

Customer satisfaction: Measure customers’ responses to surveys about how they’re being treated by their sales rep, and whether they’re satisfied with the level of service they’re receiving.

Repeat business: Evaluate year-to-year customer retention rates, or how much per-customer revenue has increased from the prior year.

Profitable revenues: Calculate the average profit margin that reps maintain on the business that they develop, or on profit margins per customer.

Internal communication: Poll other company employees on how effectively sales reps communicate with internal organizations in getting things done.

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