SALES CONTROL: SYSTEM, IMPORTANCE, EXAMPLES - DUDAS - 2025

The sales control is the analysis and measurement of the performance of the sales force, compared with standard performance. It consists of noting and pointing out deviations, determining their causes, and taking the appropriate corrective measures to face different situations.

This control is one of the functions of sales management to ensure the achievement of sales and profit objectives of the company, through effective coordination of the different functions of this sector.

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It is what guarantees the productivity of the sales force. Sales control keeps workers in this sector alert, creative, active and makes them constant in their actions.

It is necessary to keep the sales team on the right track and help them excel. Monitor the actions of the sales team members and avoid unnecessary mistakes, teaching them to take corrective action when necessary.

Sales volume, expenses and activities are considered the basic parameters to analyze and compare the performance of the sales team.

Sales control system of a company

An effective and adequate sales control system is essential for both companies and sellers.

However, a sales control system must be designed with care, because too liberal or too strict a system can be detrimental to the performance of the sales team.

An appropriate control system should be designed only after analyzing the nature of the vendors, the degree of cooperation, the type of work, and other relevant variables.

There are different sales control systems to control the effort of the sales force. However, these systems are not ideal for all organizations and settings. The applicability of a control system depends on the different aspects used to measure and compare.

Sales control systems keep the team motivated to grow the business. The system can be based on the bottom line or the behavior of the employees.

Results-based sales control

This form of sales control is the most common, as it is easier to track. In this system, compensation is awarded based on the amount of sales made.

There are several problems with this control system. The biggest of these is the fact that sales reps are likely to use dubious practices to maximize their sales. Also, they probably won't focus much on retaining customers, as they won't be rewarded for it.

In general, results-based sales control makes salespeople unhappy, as they can be fired quickly if they don't make enough sales.

Behavior-based sales control

Previously, behavior-based sales control systems were difficult to implement, as multiple factors must be considered to do it correctly. Compensation for sellers is not only based on the amount of sales, but also on the process they follow.

Salespeople will be able to grow the brand and create a positive image of the company if performance is measured based on their behavior, since they are not only motivated by making sales. Behavior-based control systems are best implemented using customer relationship management (CRM) systems.

Importance

Control over the activities of sellers is exercised through supervision. The annual sales target can only be reached when all activities are carried out according to a plan. The following are the reasons that show why sales control is important.

- Regardless of whether the salesperson works independently or at long distances from the manager, in both scenarios coordination problems with the manager or with other salespeople can arise. Therefore, control is necessary in such scenarios.

- It is important to maintain the transparency of all actions of a seller with the manager, so that negative deviations can be analyzed and corrected.

- It is important to direct the efforts of a salesperson in order to maximize profitability and ensure maximum utilization of staff and resources.

- Customers are the most valuable thing for any business. Therefore, it is important to address customer complaints and problems. In this way, a positive image of the company can be created in the market.

- The sales manager must direct the salespeople so that they can keep the customers in high priority and that they are happy and satisfied.

Examples

Set sales standards

A standard is a target against which the performance of a salesperson can be measured. It can be used to make comparisons. It is important that the standard is realistic and achievable. Too high a standard is useless as it will be unattainable and will only demotivate workers.

Standards should be designed with the organization's resources in mind, and established in numerical or measurable values.

For example, $ 1 million of standard sales per year, $ 500 thousand of standard profit per year, or a minimum 4% reduction in cost. Most of the time, it is difficult to set standards in numerical terms.

It is important to specify a time limit within which the standards must be met, which must be maintained for short periods of time.

For example, if a company has established a sales standard of $ 12,000,000 per year, then a sale of $ 1,000,000 should be established as the monthly sales standard.

Standards may be reviewed periodically and may be changed depending on the situation or season.

Establish sales territories

In this way, the salespeople will not be competing with each other and will be fully focused on getting leads and making more and more sales.

In addition to this, when the territory is well defined for the sales members, the chance of losing leads is reduced and it is also easy for a salesperson to establish a relationship with the clients for future business.

Visits and tours

Managers generally keep in contact with members of the sales team by phone and email. However, it is important to go out on tours with team members at least once every six months.

This can help you analyze how your team members are performing and what your relationship is with customers. On the other hand, the difficulties that sellers face while doing field work will be known.

Vendor reports

Reporting is one of the most widely used methods for tracking salespeople performance. It must be clear how and when to inform the bosses.

References

1. Hitesh Bhasin (2019). What is Sales Control? Importance and Process of Sales Control. Taken from: marketing91.com.
2. Mba Skool (2019). Sales Control. Taken from: mbaskool.com.
3. Channel-Xpert (2018). What Are Sales Control Systems? Taken from: channel-xpert.com.
4. Jaideep (2019). Sales Force Control: Controlling Process and Methods. Your Article Library. Taken from: yourarticlelibrary.com.
5. Chris MacKechnie (2019). How to Control A Sales Force. Small Business-Chron. Taken from: smallbusiness.chron.com.