Wednesday, February 27, 2008

Sales Volume - Sales

We are talking Sales Forecast and Sales Budgeting here as part of our talk on Sales forces management. Sales Force Automation (SFA) is part of sales force management. We talked Fixing Sales Quota in our last talk. Today we are going to talk about Sales Volume.
Sales Volume:
Quote is an important standard for appraising the performance of individual sales personnel. Sales volume quotas communicate management’s expectations as to how much for what period sales volume quotas are set for geographical areas, product lines, or marketing channels or for one or more of these in combinations with any unit of the sales organization, the exact design depending upon what facets of the selling operation management want to appraise or motivate.

Sales volume quotas are subdivided into following categories:

  • Money sales volume quotas
  • Unit Volume quotas
  • Point volume quotas

Procedure for setting sales volume quotas:

  • Sales volume quotas derived from territorial potential.
  • Sales volume quotas derived from total market estimates.
  • Sales volume quotas based on past sales experience alone.
  • Sales volume quotas based on executive judgment alone.
  • Sales volume quotas related only to compensation plan.
  • Letting sales personnel set their own sales volume quotas.

ref: Insurance CRM Software, Insurance Agency management software

Wednesday, February 13, 2008

Objective of Fixing Sales Quota

Sales force management is part of any sales force automation software with agency management software. We talked Sales Forecasts, Sales Budgets and Fixing Sales Quotas in our last post. Today we are going to talk about Objectives of Fixing Sales Quotas.

The basic objective is that a sales management has in mind in using quotas is to control the sales efforts. A skilled management uses quotas to motivate personnel to achieve desired performance levels, apart from these there are some other objectives also which are as follows:
  • To provide quantitative standards
  • To obtain tighter sales and expense control.
  • To motivate desired performance.
  • To use in connection with sales contents.

Types of sales quotas and quota setting procedures:
There are four types of sales categories. They are
1) Sales Volume
2) Budget Quotas
3) Activity
4) Combination
We will talk about Sales Categories in our next post.

ref: Agency Management Software, Insurance Software, Insurance CRM

Tuesday, February 5, 2008

Fixing Sales Quotas

Sales force management systems are information systems used in marketing and management that help automate some sales and sales force management functions. They are frequently combined with a marketing information system, in which case they are often called Customer Relationship Management (CRM) systems. CRM is part of Agency Management System. We talked Sales Forecasts and Sales Budgets in our last post. Today we are going to talk about Fixing Slaes Quotas.

Fixing Sales Quotas/targets for individual sales territories/salesman
Sales Quotas are quantitative objectives assigned to sales organizational units i.e., to individual sales personnel. In some company’s, sales management sets quotas for middlemen, such as agent, wholesalers and retailers.

Quotas set for sales regions or other marketing units are broken down and assigned to lower level units like sales districts, or to individual sales personnel. All quotas have time dimension- they quantify what management expects with in a given period.

We will talk about Objective of fixing sales quota in next post.

ref: Insurance Software, Insurance SFA, agency management system