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HR & Labour Law Consultant
4th October 2015 From India, Mumbai
Your challenge is different and the solution you would like to adopt is different. Your main challenge is low strike ratio of the sales calls. Strike ratio is calculated as (Number of Sales Conversion*100/Total Sales Call made). If you want to increase the strike ratio, then you need to train your salespersons properly.
As far as sales training is concerned, let me ask you few questions. These are as below:
a) What is your product or service?
b) Who are your customers? How have you categorised your customers?
c) Is there absolute uniformity amongst salespersons as far as handling of the sales call is concerned? If given a chance to dozen salesperson to handle particular sales call, will they handle exactly in same fashion or will there be variation?
d) This question is based on (c) above. Sales productivity depends on the customised sales process that the salespersons implement. Do you have well-researched, well-documented sales process? If yes, then how do you measure the process compliance?
e) To improve the sales productivity, have you generated knowledge assets as to why customers buy and why customers do not buy, as to why sales call fail and why sales call succeed?
f) Lastly, what is total sales expenditure? Of this, what per cent is petrol allowance?
Putting a cap on petrol allowance is poor way of controlling sales expenses. What you need to do is train your salesperson and improve the sales productivity. Rather than saving on tidbits, think of selling lavishly and earning lavishly!
4th October 2015 From India, Bangalore
Can you mention the reason(s) for this query?
Dinesh Divekar has hit it on the spot--'Your main challenge is low strike ratio of the sales calls'.
Like Saikumar & Nathrao mentioned, relating/linking Sales targets to Conveyance allowance not just is 'not right' but ALSO counter-productive. You are giving scope for new problems that you COULD find more tougher to handle [including possibly revolt by the Sales team, in the WCS].
First & foremost, sit with the Sales Head & figure-out the PROBABLE causes for this situation. And ALSO sit with the Sales team WITHOUT the Sales Head's presence [gives you the actual ground realities without any fear from the team].
Then collate the inputs you got & discuss with the Company/Division Head/CEO/MD. ONLY then can you begin to THINK of solutions.
While I know I am MAKING assumptions here, my guess is that it's a very accurate assumption.....had some work gone into finding the causes for this situation, frankly, the 'relating/linking Sales targets to Conveyance allowance' WOULDN'T even have been considered as a possible solution at all.
While one definite reason COULD be what Dinesh Divekar mentioned--poor/improper training--the other reasons COULD also be poor targeting of prospects, low motivation of sales team [for whatever reasons], poor management style of the Sales Head, unreasonable sales targets, lop-sided hiring of the sales team, etc, etc--all of these are just POSSIBILITIES, The REAL reason(s) is/are for you to figure-out.....and pl be mentally prepared to discover that there COULD be multiple reasons.
IF you have already done some groundwork, then it's better to mention the details here so that the members of this Forum DON'T have to keep guessing each & every possibility.
And Yes, pl confirm the sector your Company is in. Factors/reasons can vary widely between sectors.
6th October 2015 From India, Hyderabad
6th October 2015 From India, Delhi