Performance vs Effectiveness
What does behavior describe in sales performance?
The actions a salesperson takes (calling customers, writing orders, or sending follow-up emails).
What are “results-based metrics” also known as?
Output measures.
What do subjective measures evaluate?
Qualitative aspects of a salesperson’s performance (quality over quantity).
What is the main focus of a good CRM system?
The customer belongs to the company, not just the salesperson.
What product does West Midland sell?
Large industrial kitchen appliances (refrigerators, dishwashers, freezers).
If a salesperson makes fewer calls but closes more deals, what does that show?
They are more effective.
What are “activity-based metrics” known as?
Input measures.
What is the “halo effect”?
When one positive trait influences the entire evaluation.
Which quality management philosophy do Performance Management Systems mirror?
Total Quality Management (TQM).
Who is the sales manager and how long has he been with the company?
David Epstein, 10 years.
What’s the main difference between performance and effectiveness?
Performance is about how much you do, effectiveness is about how well you do it.
Give an example of a ratio measure in sales evaluation.
Cost per call ratio or orders per call ratio.
Name three of the six subjective measures.
Sales results, job knowledge, management of territory, customer and company relations, personal characteristics, satisfaction.
What is 360-degree performance feedback?
Gathering performance input from multiple sources (customers, coworkers, managers, and self) for development.
What type of measures did Epstein use to evaluate performance?
Ratios and objective measures.