Page 166 - Marketing the Basics 2nd

158 Marketing: the Basics
determines the number of calls needed to be made each year to maintain an existing client base. To do so, the company first groups its clients into a number of classes. The filtering criteria could be volume, customer size, account status, location or any other vari- able by which the seller evaluates their operations. Suppose there are three classes of customers: A, B and C. There are 1000 type A accounts, 500 type B accounts and 100 type C accounts. Type A accounts require 20 calls a year. Type B accounts require 30, whereas type C accounts require 5 calls a year. The sales force’s workload is the number of calls needed to make in one year, so
[(1000 × 20) + (500 × 30) + (100 × 5)] = 35,500 calls
Suppose each salesperson makes 250 calls a year, the company would then need 142 people (35,500 / 250).
RECRUITING AND SELECTING SALESPEOPLE
We stated earlier that successful salespeople must be risk-takers, be resourceful, be self-confident and be able to empathize with others. Finding individuals with these characteristics can lead to dramatic changes to the balance sheet. Studies have shown on average, just 30 per cent of the sales force accounts for 60 per cent of a company’s revenue. A star salesperson shines.
Because companies are looking for particular characteristics in their sales force, often multiple interviews are needed before the company decides to make an employment offer. Many companies also require candidates to sit aptitude tests, measuring their intelligence quotient, analytical and organizational abilities, personality traits and a host of other factors. One need not fret too much about aptitude tests. While there is evidence suggesting high-test scores predict future sales performance, the correlation between the two is debatable. Past employment history, reference letters and interviewer reactions are just as good, if not better, indicators of future performance. Salespeople sell, so looking at their track record is quite important.
Some recruiters have begun to utilize a new screening strategy for sales positions which requires candidates to prepare and present a business case. This provides a somewhat realistic assessment of the individuals’ presentation skills at critical junctures.