Why is it important to evaluate sales performance?
To understand if salespeople are meeting goals, identify strengths/weaknesses, improve training, allocate resources, and ensure the sales team supports company strategy.
What is the definition of sales analysis / cost analysis?
Sales analysis: Examines sales data to evaluate performance by product, region, salesperson, customer segment, etc.
Cost analysis: Compares costs associated with selling (travel, salaries, commissions, promotions) to determine profitability.
Typical measures used to create sales goals:
Revenue, number of new customers, units sold, profit margin, sales growth %, pipeline metrics.
Definition of pipeline analysis:
A method of assessing where prospects are in the sales funnel and predicting future sales based on stage-by-stage conversion rates.
What are output measures?
Results-based metrics: revenue, profit, number of new accounts, orders received, units sold.
Difference between output measures and input measures:
Output measures: Results of performance (what was achieved).
Input measures: Activities completed (number of calls, emails, demos, meetings).
Performance ratings – what is evaluation bias, halo bias, interpersonal bias?
Evaluation bias: Any unfair distortion in rating a salesperson.
Halo bias: One good trait spills over into rating everything else positively.
Interpersonal bias: Ratings influenced by personal liking/disliking of the salesperson.
What is a mission statement?
A brief statement that defines the organization’s purpose and goals.
What is a competitive advantage?
A unique strength that sets a company apart from competitors (ex: price, quality, speed, service).
Difference between product development and product diversification:
Product development: Creating new products for existing markets.
Product diversification: Creating new products for new markets.
What is a SMART goal?
Specific, Measurable, Achievable, Relevant, Time-bound.
Difference between transactional and consultative selling:
Transactional: Focus on quick sales and price.
Consultative: Focus on long-term relationship building and solving customer problems.
What does MAD mean in selling?
Money, Authority, Desire — used to qualify prospects.
Why are companies using more sales channels than before?
To reach customers wherever they are and improve convenience, efficiency, and coverage.
Definition of market sensing:
The ability to gather, interpret, and respond to market information and customer needs.
What is the most expensive sales channel? Why?
Field sales—because it requires travel, salaries, commissions, and one-on-one attention.
Definition of purifying:
Removing unnecessary products or customers from the portfolio to focus on the most profitable ones.
Difference between leading and managing:
Leading: Inspiring, motivating, and influencing people.
Managing: Planning, organizing, controlling, and executing processes.
Cost of a poor hiring decision:
Lost sales, wasted training costs, team disruption, and lower morale.
First step in conducting a job analysis:
Identify the tasks, responsibilities, and required skills of the job.
Definition of turnover rate:
Percentage of employees who leave a company during a certain period.
Why is it important to monitor turnover?
High turnover increases cost, reduces sales consistency, and signals problems in management or culture.
Benefits of sufficient training for a sales professional:
Higher productivity, better customer satisfaction, increased confidence, stronger product expertise.
Why follow up on training?
To reinforce skills, ensure application, identify gaps, and measure effectiveness.
