Stage of stabilization and retention of market share
Posted: Sun Dec 22, 2024 9:01 am
The task is to retain and develop customers.
At this stage, priorities change, quantity needs to be converted into quality. By this time, the manager usually already has enough statistical data for planning, making forecasts on customer behavior, etc.
If the market is already established, grows slowly or tends to become saturated, the struggle for the client becomes especially intense. At this stage, sales managers should pay special attention to profit, since there is a risk of moving towards competitive advantages to the detriment of the enterprise's income (reduced costs, deferred payments, large discounts, etc.). The effectiveness of the sales system can be assessed by the following indicators:
Stage of stabilization and retention of market share
Source: shutterstock.com
Sales volume (in monetary terms or in units). This indonesia email database indicator also characterizes the organization's market share. If you know the market capacity, you can easily understand what position your company occupies.
Return on sales = Profit / Sales volume x 100%.
Average profit per order = Profit / Number of orders / Number of transactions.
Number of complaints from consumers.
Average deal/contract size = Sales volume / Number of deals
Percentage increase in sales for VIP clients (regular) = Sales volume (for a specific group of clients) for the second period / Sales volume for the first period x 100%.
Number of lost customers. In conditions of tough competition, this parameter is critical.
Share of complete deals = Number of deals with full assortment / Total number of deals x 100%.
Sales performance = Actual sales volume / Planned sales volume x 100%. The planned volume is set not at the minimum level, but at the hard-to-reach level.
Accounts receivable turnover = Sales revenue / Average accounts receivable for the period.
This indicator shows the operational efficiency of sales.
Average monthly accounts receivable = 1/2 V at the beginning of the month + V2 + V3 + V4 + 1/2 V at the end of the month / 4
Where V is the amount of accounts receivable at the beginning of the month, the beginning of the 2nd, 3rd, 4th week and at the end of the month.
Stage of stabilization and retention of market share
Source: shutterstock.com
With an increase in the turnover of accounts receivable, the operating cycle of the enterprise is shortened, and the efficiency of financial assets increases.
The efficiency of the sales department's HR (compared with the planned indicator or the dynamics are tracked over a certain period of time) = Profit / Number of employees in the department.
This indicator allows you to track the increase in the efficiency of the sales department depending on the change in the number of employees.
Selling expense efficiency = Selling costs / Sales volume.
Average customer service period (hours or days from receiving a customer's request to delivery of the goods).
This group of sales department performance indicators provides an opportunity to analyze the work with a focus on the fight for customer retention and profit generation. If these parameters deviate from the plan, it is necessary to carefully assess the situation and make the necessary management decisions.
Read also!
"32 Methods of Finding and Attracting Clients"
Read more
"Human factor"
When in business the main importance in promoting a product is given to the personal qualities of the seller, his professionalism, knowledge, etc., the definition of personal indicators will help to evaluate the effectiveness of sales:
Sales volume/income per employee.
The amount of accounts receivable/overdue accounts receivable for employees.
Number of new customers by employees.
The share of sales of priority/highly profitable goods in the total volume of sales of the employee.
Efficiency of staff working time = Number of contacts with customers / Number of working hours.
To select indicators in such cases, the third approach is usually used, that is, the best results that have ever been achieved in the company are taken into account, thus setting standards close to the most successful values.
To assess the effectiveness of the sales department, it is worth using some more difficult to measure parameters. They are usually assessed during certification and based on the results of the probationary period:
product knowledge;
market knowledge;
knowledge of competing companies;
ability to plan;
sales skills, etc.
At this stage, priorities change, quantity needs to be converted into quality. By this time, the manager usually already has enough statistical data for planning, making forecasts on customer behavior, etc.
If the market is already established, grows slowly or tends to become saturated, the struggle for the client becomes especially intense. At this stage, sales managers should pay special attention to profit, since there is a risk of moving towards competitive advantages to the detriment of the enterprise's income (reduced costs, deferred payments, large discounts, etc.). The effectiveness of the sales system can be assessed by the following indicators:
Stage of stabilization and retention of market share
Source: shutterstock.com
Sales volume (in monetary terms or in units). This indonesia email database indicator also characterizes the organization's market share. If you know the market capacity, you can easily understand what position your company occupies.
Return on sales = Profit / Sales volume x 100%.
Average profit per order = Profit / Number of orders / Number of transactions.
Number of complaints from consumers.
Average deal/contract size = Sales volume / Number of deals
Percentage increase in sales for VIP clients (regular) = Sales volume (for a specific group of clients) for the second period / Sales volume for the first period x 100%.
Number of lost customers. In conditions of tough competition, this parameter is critical.
Share of complete deals = Number of deals with full assortment / Total number of deals x 100%.
Sales performance = Actual sales volume / Planned sales volume x 100%. The planned volume is set not at the minimum level, but at the hard-to-reach level.
Accounts receivable turnover = Sales revenue / Average accounts receivable for the period.
This indicator shows the operational efficiency of sales.
Average monthly accounts receivable = 1/2 V at the beginning of the month + V2 + V3 + V4 + 1/2 V at the end of the month / 4
Where V is the amount of accounts receivable at the beginning of the month, the beginning of the 2nd, 3rd, 4th week and at the end of the month.
Stage of stabilization and retention of market share
Source: shutterstock.com
With an increase in the turnover of accounts receivable, the operating cycle of the enterprise is shortened, and the efficiency of financial assets increases.
The efficiency of the sales department's HR (compared with the planned indicator or the dynamics are tracked over a certain period of time) = Profit / Number of employees in the department.
This indicator allows you to track the increase in the efficiency of the sales department depending on the change in the number of employees.
Selling expense efficiency = Selling costs / Sales volume.
Average customer service period (hours or days from receiving a customer's request to delivery of the goods).
This group of sales department performance indicators provides an opportunity to analyze the work with a focus on the fight for customer retention and profit generation. If these parameters deviate from the plan, it is necessary to carefully assess the situation and make the necessary management decisions.
Read also!
"32 Methods of Finding and Attracting Clients"
Read more
"Human factor"
When in business the main importance in promoting a product is given to the personal qualities of the seller, his professionalism, knowledge, etc., the definition of personal indicators will help to evaluate the effectiveness of sales:
Sales volume/income per employee.
The amount of accounts receivable/overdue accounts receivable for employees.
Number of new customers by employees.
The share of sales of priority/highly profitable goods in the total volume of sales of the employee.
Efficiency of staff working time = Number of contacts with customers / Number of working hours.
To select indicators in such cases, the third approach is usually used, that is, the best results that have ever been achieved in the company are taken into account, thus setting standards close to the most successful values.
To assess the effectiveness of the sales department, it is worth using some more difficult to measure parameters. They are usually assessed during certification and based on the results of the probationary period:
product knowledge;
market knowledge;
knowledge of competing companies;
ability to plan;
sales skills, etc.