Measuring Marketing

Chapter 103 Cost Per Call

Measurement Need

To know how much each salesperson’s time is worth and the expense of making each customer contact.

Solution

To determine cost per call, the salesperson needs three pieces of data:

–sales expenses per time period (usually one year);

–total selling days per time period (same time period); and

–according to Sales & Marketing Management magazine, the average compensation (base salary plus bonus and commissions) for all salespeople in the United States was US$111,135i

This figure is only part of the total sales expense, however. Salespeople incur additional expenses in the course of their annual selling activities, including transportation, entertainment, and support materials expenses. The number of actual ...