In: Operations Management
Given the following information from evaluations of the performance of different sales representatives, what can you conclude about why the reps are not achieving quota? (Assume each is not making quota.) a. Rep 1: Achieved goals for sales calls, phone calls, and new accounts; customer relations are good; no noticeable deficiencies in any areas. b. Rep 2: Completed substantially fewer sales calls than goal. Many phone calls, but primarily with one firm. Time management analysis shows the sales rep spends a disproportionately large amount of time with one firm. New accounts are low; all other areas good to outstanding. c. Rep 3: Number of sales calls low, below goal. Telephone calls, letters, proposals all very low and below goal. Evaluation shows poor time utilization. Very high amount of service-related activities in rep’s log; customer relations extremely positive; recently has received a great deal of feedback from customers on product function.
Rep 1: Achieved goals for sales calls, phone calls, and new accounts; customer relations are good; no noticeable deficiencies in any areas.
Evaluation- This representative is quite good in the initial phases of generating sales. He is good at finding out the prospective customers, the in the initial conversation with the customers, approaching new customers and explanation about the products to the customers but the areas where he is lacking can be to clarify the doubts of the prospective customers relating to products and to close the deal efficiently. He may have a good relationship with the customers due to his interpersonal skills, but he may not have sufficient knowledge about the product, due to which he may be lagging to convert a good prospective sales deal to a closed deal. Alternatively, he may also lack some deal-closing techniques like offering some gifts or offers or discounts that enhance the prospective buyer's satisfaction level.
Rep 2: Completed substantially fewer sales calls than the goal. Many phone calls, but primarily with one firm. Time management analysis shows the sales rep spends a disproportionately large amount of time with one firm. New accounts are low; all other areas good to outstanding
Evaluation- This sales representative lacks in the initial stages of attracting prospective customers. He is focusing only on one prospective customer and in the meantime is losing all the other prospective customers to the other firms. He has a serious problem with his timing. His main problem is that he is devoting all his time and efforts to make one prospective customer and to close the deal. In this way, he will never be able to fulfill his quota. He has to be diversified and has to chalk out all the prospective customers and then try to talk with each one of them simultaneously at the same time. Then he has to also take initiative to attract new customers and try to maintain a good relationship with each one of them. First of all, he has to fulfill his goals for a sales call and then only, he will be able to make a good customer base and achieve the desired sales target.
Rep 3: Number of sales calls low, below goal. Telephone calls, letters, proposals all very low and below goal. The evaluation shows poor time utilization. A very high amount of service-related activities in rep’s log; customer relations extremely positive; recently has received a great deal of feedback from customers on product function.
Evaluation- This representative is not at all good at initiating the deals. He is good at providing service to the customers and satisfying their inquiries, maintaining a good relationship. Firstly, he has to identify the prospective buyers, then have to start communicating with them. He has to learn to utilize his time by judiciously identifying his target buyers (old and new) and should start communicating with them. His main problem is that he lacks the vision to identify the prospective customers and interaction technique skills to initiate the deal, whereas he is good at maintaining relationships with the established customers by providing them good service.