Coordinate Sales Performance
This unit describes the performance outcomes, skills and knowledge required to implement
and monitor adherence to sales policies and procedures, and monitor the achievement of sales
targets.
Implement Sales Policies and Procedures
Sales Transaction
A sale is a transaction between two or more parties in which the buyer receives tangible or
intangible goods, services, or assets in exchange for money. In some cases, other assets are
paid to a seller. In the financial markets, a sale can also refer to an agreement that a buyer and
seller make regarding the price of a security.
What is Sales Policy?
A sales policy is a systematic process of developing, coordinating, monitoring the various
decisions that have a direct bearing on the company’s sales. The objective of such policies is
to furnish effective guidelines for corporate efforts to optimize customer satisfaction, besides
stimulating the company’s profitability and competitive strength.
1. The products to be offered for sales, i.e., Product Policies;
2. The categories of customers to whom the products will be sold, i.e., Distribution
Policies.
3. The prices at which the products will be sold, i.e., Pricing Policies; and
4. The promotional methods utilized for the sale of products, i.e., Promotional Policies.
The sales policy is an assortment of products, logistics configurations, and pricing that
determines the characteristics of a store. A sales policy is a combination of all these key
elements that make up a store. Sales policies can be created to be used in marketplaces.
Store policy and procedures in regard to:
Allocated duties and responsibilities
Efficient use of resources
Internal and external customer contact
Reporting
sales transactions
selling products and services
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Importance of Sales Policies
Profitable Sale - Profitable sales depend not only on the proper control and operation of a
salesman but also on sound sales policies.
Influence Jobs of Sales Executives - Sales policies directly influence the jobs of sales
executives. These policies provide direction as sales executives plan how the company will
reach person selling objectives, as the organized the sales efforts, as they manage the Sales
force, and as they control the sales effort. Clearly, these policies provide the framework
within which sales executives and the department they lead must operate.
Answers to Sales Issues - Certain issues related to the product, the channel of distribution,
pricing, the customer may confront the company. Time and time again questions about the
product line, promotion work, Sales force, credit, discounts, and rebate and similar basic
matters arise.
Easy Delegation - With the policies clearly understood, a busy sales executive can delegate
duties to subordinates with confidence that these will be carried out along the general lines he
wishes.
Easier Co-ordination - Each executive knows how others will act, and this makes co-
ordination easier to achieve.
Consistency of Action - There will be a consistency of action taken by different members of
the firm.
Living Precepts - Policies are not a set of inflexible rules, instant they are the living precepts
which guide the company in a continuing and consistent pattern of the behavior.
Affect Success of Others - Decisions regarding one type of sales policy affect the success of
other policies.
What is a sales process?
A sales process is a set of repeatable steps that a sales person takes to take a prospective
buyer from the early stage of awareness to a closed sale. Typically, a sales process consists
of: Prospecting, Preparation, Approach, Presentation, Handling objections, Closing, and
Follow-up.
Prospecting
The first step in the sales process is prospecting. In this stage, you find potential customers
and determine whether they have a need for your product or service and whether they can
afford what you offer. Evaluating whether the customers need your product or service and
can afford it is known as qualifying.
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Preparation
The next step is preparing for initial contact with a potential customer, researching the market
and collecting all relevant information regarding your product or service. Develop your sales
presentation and tailor it to your potential client’s particular needs. Preparation is key to
setting you up for success. The better you understand your prospect and their needs, the better
you can address their objections and set yourself apart from the competition.
Approach
Next, make first contact with your client. This is called the approach. Sometimes this is a
face-to-face meeting, sometimes it’s over the phone. There are three common approach
methods.
• Premium approach: Presenting your potential client with a gift at the beginning of
your interaction
• Question approach: Asking a question to get the prospect interested
• Product approach: Giving the prospect a sample or a free trial to review and
evaluate your service
Presentation
In the presentation phase, you actively demonstrate how your product or service meets the
needs of your potential customer. The word presentation implies using PowerPoint and
giving a sales spiel, but it doesn’t always have to be that way you should actively listen to
your customer’s needs and then act and respond accordingly.
Handling objections
Perhaps the most underrated step of the sales process is handling objections. This is where
you listen to your prospect’s concerns and address them. Successfully handling objections
and alleviating concerns separates good salespeople from bad and great from good.
Closing
In the closing stage, you get the decision from the client to move forward. Depending on your
business, you might try one of these three closing techniques.
• Alternative choice close: Assuming the sale and offering the prospect a choice,
where options close the sale for example, “Will you be paying the whole fee up front
or in installments?” or “Will that be cash or charge?”
• Extra inducement close: Offering something extra to get the prospect to close, such
as a free month of service or a discount
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• Standing room only close: Creating urgency by expressing that time is of the essence
for example, “The price will be going up after this month” or “We only have six spots
left”
Follow-up
Once you have closed the sale, your job is not done. The follow-up stage keeps you in contact
with customers you have closed, not only for potential repeat business but for referrals as
well. And since retaining current customers is six to seven times less costly than acquiring
new ones, maintaining relationships is key.
Sales Transaction
There are three key elements that make up successful sales: people, process, and tools.
Selling may conduct in one of the following ways: face to face, internet and telephone.
I. Face to Face Sells
Face-to-face sales, sometimes referred to as “personal selling,” is when a business sells its
products or services directly to the customer, in person. Personal selling strengthens
meaningful human connections between sellers and buyers. A face-to-face sales
representative might schedule one-on-one meetings in advance or make door-to-door sales
calls. And they often attend tradeshows, conventions and industry events.
Benefits of Face to Face Sales
1. Fuel Human Connections
The best sales representatives have harvested a deep understanding of human relationships.
2. Clearly Communicate Shared Values
Shared values between consumers and brands help to establish concrete relationships.
3. Educate Prospects and Customers
A face-to-face sale gives you a platform to engage directly with consumers and answer their
questions about your products or services. Sales representatives in the field should be armed
with a wide breadth of knowledge, not only about your products and services, but also about
your industry in its entirety.
4. Earn Trust and Credibility
Customers are more likely to buy from brands and companies they know and trust. If
prospects don’t trust you, there will be no foundation to build a relationship.
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5. Demonstrate Complicated Products or Services
Do you remember the last time you went to a grocery store and were offered a free sample?
Grocery stores vendors have mastered the art of demonstration because they know customers
are much more likely to purchase after seeing and tasting a product.
6. Eliminate Technical Difficulties and Miscommunication
Face-to-face selling eliminates these technical difficulties, enabling sales professionals to
establish a rapport with prospects. You’ll also be able to use body language indicators to
better gauge prospects’ reactions.
II. Internet Sales
Internet Sales means the advertisement, promotion and sale of products to individual
consumers who submit orders for such products directly through an E-Commerce website
consistent with the terms of this agreement.
The online marketplace is a good platform for companies to expand their business. There are
kind of advantages that online selling provides for business performance. The following are
some of the benefits of internet sells:
1. Faster buying process
2. Store and product listing creation
3. Cost reduction
4. Affordable advertising and marketing
5. Flexibility for customers
6. No reach limitations
7. Product and price comparison
8. Faster response to buyer/market demands
9. Several payment modes
10. Enables easy exports
III. Telephone Sells
Selling of a particular commodity or service by a salesperson who makes his or her initial
approach by telephone. It also called telemarketing. Telemarketing is a method of selling
products and services over the telephone. It has both advantages and disadvantages. The
advantages are it is easy to reach out to customers and it is cost effective if done successfully.
The disadvantages are that it has a bad reputation and some of the startup costs are expensive.
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Easy to get to customers - One of the advantages of telemarketing is that it provides a way
for you to easily connect with prospective customers.
Cost effective - Another advantage of telemarketing is that it is more cost effective than
performing direct sales. It makes selling more efficient because you can get more selling
done in less time
It has a bad reputation - A main disadvantage of telemarketing is that it is considered a
nuisance by many people and it is governed by many legal rules that must be followed. The
negative image of this form of selling may tarnish the reputation of your business.
Customer lists and training personnel can be costly - Telemarketing can be costly both
monetarily and in manpower hours. Customer lists can be expensive and most of the contact
information on them could be useless. For example, most of the people on a contact list may
have no interest or use in what you are trying to sell.
Sales Transaction – Mode of Payment
Sales transaction can be further classified by its mode of payment through which a customer
can make bill these are Cash, Cheque, Credit Card, Gift voucher and Store card.
A cash sale is a business transaction in which the buyer pays for goods or services at the time
of the purchase. In a cash sale, payment is immediate. How the buyer pays doesn't matter, as
long as there is a transfer of monies. It can be: Cash: The buyer counts the bills and coins and
hands it over to the seller.
Cheque Transaction – means a transaction paid for with a Cheque or a transfer of money on
your instructions which is charged to your Account, as the case may be.
A credit card is a financial tool where a bank gives a loan to its customers, known as a credit
limit that used for everyday expenses or large purchases. Like traditional loans, a credit limit
is subject to interest.
Gift voucher is a voucher for a specified amount purchased from a retailer (or other business)
and given to someone as a present. The voucher can be exchanged for goods or services by
the recipient at the retailer or business concerned.
A store card is a credit card that is given out by a store and that can be used to buy goods at
that store. A store card is a credit card that can only be used at one specific store or retailer.
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Usually, store cards come with special perks and discounts that are not available to users of
other credit cards. For example, many stores offer rewards points or cash back for purchases
made with their store card.
Relevant Legislation Related to Selling
• Environmental and sustainability legislation
• Industry codes of practice
• Liquor laws
• Lottery legislation
• Work Health and Safety
• Pricing procedures
• Sale of second-hand goods
• Tobacco laws
• Transport, storage and handling of goods
Sale Team
Sales team building activities are a series of exercises that help salespeople work together
more effectively. They can be fun and engaging, while simultaneously boosting morale and
helping company growth.
Sales team building activities are important because they will:
Increase employee engagement so workers want to perform their best on the job
Boost morale so your team is happy to be working with each other
Provide a way for employees to get to know one another’s strengths and weaknesses
Help your company grow by making it better able to adapt to different situations.
Procedures
i. Team is monitored to ensure information is entered into point-of-sale equipment
accurately.
ii. Team is monitored to ensure the efficient and safe handling of goods through point-
of-sale areas.
iii. Team is monitored to ensure that products and services are matched to customer
needs.
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