Saturday, May 31, 2008

Measure Sales Performance.

Defining the areas of evaluation.
How do you set sales goals? Do you establish call quotas or revenue quotas based on the success of top line room revenue in relation to budget and last year? The fatal flaw with call quotas is that they are easy to forge and a lot of calls made without enthusiasm or with poor sales skills fulfills the quota but does nothing for the property’s revenue.
Do you regularly ask for reports from your sales people? The reports that you request communicate to them what is important to you. If you are asking for raw numbers of calls without any information on who was called and why, you are not getting the whole picture.
The next one is tricky but evaluating sales activity in relation to potential revenue is critical to maximize productivity. For example, is too much time being spent on developing low-rated contract or MASS business when the denials reflect higher rated demand is being lost? Have you targeted the market segments most likely to give you business at the higher rate and restructured the department’s market segments and time allocations accordingly?

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