Today in this article, we want to talk about performance assessment, and it’s one of the strategic activities that should not be neglected.

Performance assessment in sales is so essential that neglecting it is like walking on a razor’s edge; Until you come to your senses, you may fall into the valley of bankruptcy!

Therefore, to assess sales performance, key performance assessment indicators should be determined.

Indicators that can be used to correctly measure the behavior of each salesperson and the entire sales unit with numbers and figures, Not from speculation and intuitive analysis!

Performance assessment: Introduction

The importance of sales performance assessment is not only to measure the performance of the sales unit with previously defined goals, but it is a guideline that draws the future direction of the business.

Because the most essential information for making decisions about the future of any business is extracted from the data available in the sales unit.

Considering that performance is a multi-dimensional component; therefore, all dimensions should be considered in the assessment of sales performance.

Sales unit performance is generally divided into two categories: behavioral performance and result performance.

Therefore, the behavioral performance includes the duties of salespeople, and the resulting version consists of the output of the activities of the sales unit.

Performance assessment in sales: Sales growth

It is a traditional, classic, and very efficient method to assess the sales unit, which refers to the number of sales made in a certain period, for example, a month or year.

A specific number of each product or a particular amount of currency per seller makes it very easy to evaluate.

The higher the ratio of these numbers compared to previous periods, the better growth occurred.

As a fact, it should be accepted that pursuing sales growth means pursuing business growth.

Do not neglect this critical point that sales growth is acceptable for remaining stable or reducing the cost of customer acquisition.

Performance assessment in sales: sales target

One of the priorities of any business should be to determine whether it is moving towards its goals. Especially in the field of sales and marketing!

By drawing goals for each salesperson’s sales unit and monitoring the sales reports, you will easily find out whether your actual income has improved or worsened.

Performance assessment in sales: Sales funnel

when the number of leads is significant, our product is first class, the market is exclusive, and the information is hot, there is no need to investigate and assess the sales unit!

Here, the work of sellers is on a roller coaster, and selling is an art and very profitable!

But the situation is not as sweet as honey in the competitive market and recession.

Here, the efficiency of salespeople’s behavior is measured differently.

Performance assessment in sales: Cost of customer acquisition

How much does it cost to attract a new customer? Customer acquisition is the cost of persuading each new customer to buy a product or service.

To calculate the cost of customer acquisition, it is enough to divide the total costs of marketing and sales-related activities to attract customers in a certain period by the number of new customers.

The important thing is that the customer retention cost should not be included in this formula.

Therefore, calculating the total cost of marketing and sales, which sometimes includes after-sales services, is considered a gross error in calculating the cost of customer acquisition.

Customer acquisition and Bounce rate

Customer acquisition rate 

How many sales were made in a given period made by new customers? Is this number more or less than the previous period? If it was more or less, what is the reason?

Customer Bounce Rate

How many previous customers have never made a repeat purchase? How many customers have not made a repeat purchase after the product life cycle? Why?

Remember, the higher the bounce rate, the lower your revenue.

Customer bounce rate is one of the warning indicators for any business owner or sales manager.

Therefore, you should always reduce the rate of customer departure on the agenda; Therefore, do not neglect customer loyalty methods.

The conversion rate of a dissatisfied customer to a loyal customer

Unhappy customers always have the potential to become your best customers; when a customer expresses dissatisfaction, he tends to maintain an emotional relationship with the brand or seller.

The art of a professional salesperson should be to first listen to objections.

Then discover the natural complaints of the customer.

Therefore, following up and solving the causes of customer dissatisfaction is the turning point in the relationship between the customer and the seller.

Remember that every customer is an endless chain of other customers.

So, the higher the conversion rate of dissatisfied customers into loyal customers, the more demand for your products and services will multiply.

We hope you enjoy this article and would like you to share your thoughts with us in the comments.