CHAPTER FOURTEEN
Measurements for the Sales and Marketing Department
THE SALES FUNCTION IS the engine that supplies the rest of a company with enough revenue to create profitability and positive cash flow. Since it is so crucial to overall operations and financial viability, its performance should be tracked with several types of ratios and formulas. The measures selected should address not only the sales effectiveness of individual sales staff, but also sales trends by product line, overall market share, and the ability of the company to retain existing customers. The measurements presented in this chapter are:
| Market Share Customer Turnover Advertising Value Equivalency Net Promoter Score Browse-to-Buy Conversion Ratio Recency Direct Mail Effectiveness Ratio Inbound Telemarketing Retention Ratio Proportion of Completed Sales to Home Page Views | Quote to Close Ratio Pull-Through Rate Sales per Salesperson Sales Productivity Sales Effectiveness Sales Trend Percentage by Product Line Product Demand Elasticity Days of Backlog |
MARKET SHARE
Description: Company managers may think that the company's sales volume is rising, and yet it may not be keeping pace with the overall sales increases within the market. This is a common occurrence in cases in which market size is rapidly changing. Consequently, a periodic measurement of market share yields an approximate view of a company's sales performance in relation to the market as a whole.
Formula: Summarize the dollar volume of all ...
