A company develops a sales strategy to achieve their sales objectives and goals. Once the sales goals are achieved, company should also assess the effectiveness of the sales strategy used and make the necessary changes. This helps in evaluating how well your company has taken advantage of the market opportunities using your sales staff and capital resources.
So how can a business evaluate sales strategies?
- Company can start by reviewing the original sales objectives and goals. Chances are that the goals and objectives may change during the implementation process (which is out of control of the sales team).
- Next, the businesses should identify the performance gaps in the actual results and the set goals. For example, company has set a goal to increase the sales by 15 per cent by the end of the third quarter. The results can be evaluated when obtained financial and sales reports are reviewed against the set goals.
- The companies have to then evaluate the effectiveness of the promotional sales strategies. Promotional sales activities are developed to impact a business’s market shares. The information that is used for this type of quantitative assessment contains details about the sales and financial health of the organisation.
- On the other hand, businesses should also review the sales team’s performance. This process particularly contains reviewing of certain sales goals and objectives assigned to each individual employee and the team as a whole. Additionally, it also contains the requirement to look at the time period set for these sales plans against the actual performance data. This helps companies to ensure whether the sales strategies are executed timely or not. During the reviewing process, the sales plan budget should also be taken into consideration against the actual amount spent on implementation.
- Business owners should ensure that they calculate the internal rate of return on the sales plan. Sales evaluation strategies are quantitative evaluation tools that help businesses measure the cost efficiency of investments. The total amount of implementing the sales plan is expressed as a percentage of the total amount the sales plan is estimated to yield for the company during the same time span.
- Lastly, the businesses can perform a qualitative analysis of sales performance. Remember that qualitative data is non-numerical. Because of this reason, it requires collecting data from techniques such as surveys and feedback forms. Most of the useful data for evaluating sales strategies is usually obtained with the help these techniques.