Insights

Ways To Control Cost of Sales In An Existing In-Store Sales Executive Program – Part 2



In my previous insight article, I have discussed creating an evaluation metrics for In-Store Sales Executives to offset the cost of salary of these Sales Executive by allocating right stores to realise the true potential of the stores thus keeping Cost of Sales in check.

Now let’s look at few more important process improvements which can directly contribute to controlled Cost of Sales.

Robust In-Store Sales Executive addition process:

We predominantly come across two scenarios when it comes to addition of new Sales executive – addition of new store to the business and re-deployment of Sales Executive in existing store.

A check list to be prepared to have necessary checks and balances in place before deciding on addition of In-Store Sales Executive. Below are the important points to check: -

  • Business Potential In case of re-deployment historic sales data of previous months to forecast business potential and in case of new store addition sales volume/value of nearest competitor brands to be considered to forecast sales. And Cost of Sales to be derived basis proposed salary of Sales Executive Vs. forecasted sales, if the derived Cost of Sales is within the permissible limit then only Sales Executive addition to be taken up.
  • Stock Purchase history in case of re-deployment it is important to check stock purchase behaviour of the store. As one of the important factors directly influencing sales is inventory at the store – it becomes very relevant to check the same to relate if there is problem with the store or with the In-Store Sales Executive.

 Alignment of Sales Team:

In many cases it is observed that alignment of Sales Team in supervisory roles – Sales Managers, Team Leaders etc. is only towards month on month sales target which lead to short term decisions while adding more stores and deploying Sales Executives. So it is important to align the sales team to end objective of Cost of Sales by making Cost of Sales a part of their Key Performance Index. This process change will automatically result in –

  • Judicious Store / Sales Executive addition: Compliance to the process discussed above will be to the last mile
  • Timely Store/Sales Executive Shuffling: Right calls will be made post proper analysis – Store Potential, ISD quality etc. to decide if store requires a Sales Executive and if yes what should be cost of salary of the Sales Executive basis projected business potential
  • Hiring the right Sales Executive: A right mix of experience and cost will be maintained while recruiting new In-Store Sales Executive to match the targeted Cost of Sales basis projected business potential

 Overall this KPI will result in uniform distribution of attention of Sales Team in supervisory role to all the Sales Executives which in turn will lead to quick corrective actions wherever required.  

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Topics: Sales Staffing