{"id":9837,"date":"2019-07-15T09:00:20","date_gmt":"2019-07-15T07:00:20","guid":{"rendered":"http:\/\/passodue.flywheelsites.com\/2019\/07\/15\/sales-performance-analysis-lets-start-from-the-bottom\/"},"modified":"2026-02-26T11:38:08","modified_gmt":"2026-02-26T10:38:08","slug":"sales-performance-analysis-lets-start-from-the-bottom","status":"publish","type":"post","link":"https:\/\/diariodiunconsulente.it\/en\/2019\/07\/15\/sales-performance-analysis-lets-start-from-the-bottom\/","title":{"rendered":"Sales performance analysis: let&#8217;s start \u201cfrom the bottom\u201d!"},"content":{"rendered":"<p><span style=\"font-size: 18px;\">by <a href=\"https:\/\/diariodiunconsulente.it\/en\/about-us\/\">Alberto Aleo<\/a><\/span><\/p>\n<p class=\"p1\"><span class=\"s1\" style=\"font-size: 18px;\">Much of our work as consultants consists in developing the <b>commercial activity<\/b> of our corporate customers. We examine and verify their business performances and assess their results not only in terms of revenue. <\/span><\/p>\n<p class=\"p1\"><span class=\"s1 text-highlight\" style=\"font-size: 18px;\">Our analysis takes into consideration several aspects, which can in fact be referred to 3 macro-sectors:<\/span><\/p>\n<ol>\n<li class=\"li1\"><span class=\"s2\" style=\"font-size: 18px;\"><strong>Internal Processes<\/strong>\u00a0\u2013 i.e. efficiency in terms of balance between <b>resources employed<\/b> and <b>results achieved<\/b>. We analyze the method used to obtain certain results and their repeatability, as well as the knowledge developed during the process and the internal relationships.<\/span><\/li>\n<li class=\"li1\"><span class=\"s2\" style=\"font-size: 18px;\"><strong>External Processes<\/strong>\u00a0\u2013 i.e. the <b>quantity<\/b> and <b>quality of the relationships<\/b> with customers and with the distribution system. The level of service provided, the distribution of margins within the supply chain, risk concentration and product sales share. <\/span><\/li>\n<li class=\"li2\"><span class=\"s2\"><span style=\"font-size: 18px;\"><strong>Economic and Financial Results<\/strong> \u2013 <b>revenue<\/b>, <b>margin<\/b> and <b>DSO (days sales outstanding)<\/b>. These data have to be divided according to market areas, level of responsibility and business line, and compared with those of competitors and of the reference market.<\/span> <\/span><\/li>\n<\/ol>\n<p class=\"p1\"><span style=\"font-size: 18px;\"><span class=\"s1\">In our opinion an effective <strong>performance analysis<\/strong> is essential for any successful and innovative business.<\/span><span class=\"s2\"> Of course a multidimensional sales performance analysis can also be very complicated and sometimes requires several months of work. Not all companies are able to dedicate time and financial resources to such a detailed review; however they all feel the need to <strong>check<\/strong> and assess their sales performances.<\/span><\/span><\/p>\n<hr \/>\n<blockquote>\n<p class=\"p1\"><span style=\"font-size: 21px;\"><em><span class=\"s1\">Therefore where do we start to get an idea of the level of efficiency of our sales department? Are there any simple methods we can use to verify how our sales team are working?<\/span><\/em><\/span><\/p>\n<\/blockquote>\n<hr \/>\n<p class=\"p1\"><span class=\"s1\" style=\"font-size: 18px;\">I am often asked these kinds of questions.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\" style=\"font-size: 18px;\">In my opinion <span class=\"text-highlight\">all sales performances present at least <strong>4 parameters<\/strong> which should always be monitored, even within the smallest marketing department or by the least organized of managers:<\/span><\/span><\/p>\n<ul>\n<li class=\"li1\"><span class=\"s2\" style=\"font-size: 18px;\"><span class=\"text-highlight\"><b>Variance actual revenue \/ sales targets<\/b><\/span> \u2013 of course you will need to set up a <a href=\"https:\/\/diariodiunconsulente.it\/en\/2017\/09\/04\/strategic-budgeting\/\">budget<\/a> in order to measure the positive ot negative sales variance.<\/span><\/li>\n<li class=\"li1\"><span class=\"s2\" style=\"font-size: 18px;\"><span class=\"text-highlight\"><b>Quote-to-close ratio<\/b><\/span> \u2013 it measures your <a href=\"https:\/\/diariodiunconsulente.it\/en\/2017\/06\/05\/mistakes-closing-the-deal\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>negotiating performance<\/strong><\/a><i> \u2013 <\/i>i.e. your ability to convert quotes sent into successful deals \u2013 as well as the level of sales bureaucracy within your company.<\/span><\/li>\n<li class=\"li1\"><span class=\"s2\" style=\"font-size: 18px;\"><span class=\"text-highlight\"><b>On-the-job performance<\/b><\/span> \u2013 this can be assessed by observing the quantity and<span class=\"Apple-converted-space\">\u00a0 <\/span>quality of interactions between salespeople and customers. In more traditional businesses it can be measured through the number of customer visits performed by your sales team.<\/span><\/li>\n<li class=\"li2\"><span style=\"font-size: 18px;\"><span class=\"s2\"><span class=\"text-highlight\"><b>Customer acquisition<\/b><\/span> \u2013 once you have defined the meaning of <a href=\"https:\/\/diariodiunconsulente.it\/en\/2016\/10\/17\/new-business\/\"><span class=\"s4\">n<\/span><\/a><\/span><a href=\"https:\/\/diariodiunconsulente.it\/en\/2016\/10\/17\/new-business\/\"><span class=\"s4\">ew customer<\/span><\/a><span class=\"s2\"> (certainly a single quote request is not enough to be considered as such!), it becomes easy to evaluate the number of prospects converted into buying customers. This paramenter measures your ability to promote your company and reach an increasing number of customers, and can also be observed by comparing the percentage of revenue coming from existing clients with that obtained through new customers.<\/span><\/span><\/li>\n<\/ul>\n<hr \/>\n<blockquote>\n<p class=\"p1\"><span style=\"font-size: 21px;\"><em><span class=\"s1\">As a general rule these data should be collected and analyzed on a monthly basis\u00a0and this procedure should be carried out by the salespeople themselves.<\/span><\/em><\/span><\/p>\n<\/blockquote>\n<hr \/>\n<p class=\"p1\"><span style=\"font-size: 18px;\"><span class=\"s1\">However nowadays many businesses generally handle the flow of <a href=\"https:\/\/diariodiunconsulente.it\/en\/2018\/07\/02\/data-analysis\/\"><span class=\"s2\">s<\/span><\/a><\/span><a href=\"https:\/\/diariodiunconsulente.it\/en\/2018\/07\/02\/data-analysis\/\"><span class=\"s2\">ales data<\/span><\/a><span class=\"s1\"> from <i>top to bottom:<\/i>\u00a0i.e. the managers gather all the data through their internal information systems and update their sales team about their performances. This top-down way of collecting and sharing information clearly presents a \u201cpast\u201d reality rather than a project in the making.<\/span><\/span><\/p>\n<h3 style=\"text-align: left;\"><strong><span style=\"font-size: 18px;\">&#8211; &#8211; &#8211;<\/span><\/strong><br \/>\n<span style=\"font-size: 21px;\"><em>On the other hand what we suggest is to create \u201con-the-job\u201d data collection systems. <span class=\"text-highlight\">This way salespeople could register and check their results autonomously and compare them with their goals and targets<\/span> \u2013 which should refer not only to their actual sales, but also consider their negotiation abilities, on-the-job performances and customer acquisition. All data would then be sent from the bottom up to the managers, who would be informed on the current sales activity in order to make the necessary strategic corrections and improvements.<\/em><\/span><br \/>\n<strong><span style=\"font-size: 18px;\">&#8211; &#8211; &#8211;<\/span><\/strong><\/h3>\n<pre>| partem claram semper aspice |<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Much of our work as consultants consists in developing the commercial activity of our corporate customers. We examine and verify their business performances and assess their results not only in terms of revenue.<\/p>\n","protected":false},"author":6,"featured_media":9838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[97,85],"tags":[399,398,274,246,239,353],"class_list":["post-9837","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-commercial-management","category-abilities","tag-commercial-en","tag-commerciale-en","tag-performance-analysis","tag-results","tag-sales","tag-vendita-en","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v15.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sales performance analysis &bull; Passodue<\/title>\n<meta name=\"description\" content=\"Where do we start to get an idea of the level of efficiency of our sales department? 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