Sales / QS / Estimation
BASIC
1. Set a Target segment for each Sales Person and in turn the Number of
leads that the Sales Team need to work every month.
2. Identify Your Best Prospects: Segment your current customer base and
analyze it. Compile the list of “Ideal Customers” and Categorize them:
D – Could be, Probable or Improbable; C - Identified as Probable; B
– Converted to Prospect; A – Converted to Sale.
3. Create a Prospect Sheet Tracker by assigning Categories D to A. Set a
Time period for accomplishing conversion of each category to the next
level and a Target Date. Define a clear strategy that you wish to adopt
for conversion of each lead from one level to the next level. Update
this Report on weekly and monthly basis, for your own review and for
review along with the Management and for approval.
4. Specify the % of leads that moved up from D to A. If a Prospective
lead is lost, spell out the reason for the same, like Market Situation /
Price / Lost to Competition / Change in decision / Couldn’t strike
rapport with the Customer etc.
5. Measure what percentage of the leads moved to qualified stage. i.e.
percentage of leads converted to sales, which forms the acid-test of
Sales performance.
6. Make a monthly analysis of Total volume of Sales generated in terms of
value?
7. Determine, at what % of total sales volume is achieved at non-
discounted price? To assess if we are bagging orders at heavy
discounted price just to hit the Targeted Volume!!
8. Measure the average time between a lead becoming an opportunity, and
when they close to become a sale - the shorter the better.
9. Measure retention of Supplier, after the sales cycle is completed. A low
retention rate is often an indicator of problems in the sales process.
Measure what percentage of your customers cancel each year.
10. Measure the total cost of your sales efforts in a month vs the total
sales volume generated in that month.
11. Work out the Total Value of returned goods and warranties
12. Work out Asset turnover ratio (sales to Inventory)
13. % of Customer satisfaction reports received vs Total Clients.
14. Total Sales per department vs Sales per Sales person.
15. Establish Win/Loss ratio/percentage.
16. You must ensure to finalize the Terms of Payment with the Client, to
receive at least 80% by the time delivery is completed. There shall not
be more than 2.5 to 5% of retention money left by the time execution
of the Contract is completed.
17. Should you require any deviation to Payment Terms/Warranty Period,
you must ensure to get prior Approval from the Management.
18. It shall be your sole responsibility to ensure receipt of Advance
Payments from the Clients for all the Contracts including Lose Eqpt. As
for the Payments receivable against the phased execution of the Project,
key accountability for the same shall rest with Projects Team. However,
the Sole responsibility to ensure that Projects Team has ensured
collection of the said Payments, shall rest with the Sales Team.
KPIs
1. Maintaining a Register of Enquiries and update the same on weekly
basis.
2. Finalize the Offer only after making Site visit, reviewing the Drawings
and Techno-Commercial specifications, completing negotiation with the
identified Top-end Suppliers, freezing the Costs after considering
alternative proposals and accommodating likely variations if any and duly
verifying the actual costs.
3. Number of Adjustments to The Schedule: Ascertain, how many times
your team has made adjustments to the completion date of the project.
Also, establish the cycle time of time spent by the Team for each
Project and by the individual member of the Team.
4. Budget Variance: keep a tab on how much the actual budget varied
from the projected budget. Measure how close the baseline amount of
expenses or revenue is to the expected value.
5. QS to put-up the Budget for approval and get ABC (Approved Budget
for the Contract). The Budget that you put-up for approval, must
specify all sub-Budget components such as: Procurement (Market Price
of Equipment) / Logistics (Freight, Insurance, Transport, Documentation,
Inspection etc.) / Project Execution (Installation, Labor, Spares &
Service/maintenance, Accessories etc.).
6. Budget Creation Cycle Time: Determine the time needed for each Project,
to formulate an organization’s budget from planning stage to reaching
final agreement.
7. Planned Value: what % of Project is remaining and what is the balance
Budgeted value remaining and determine how to adjust the remainder of
the project to stay within the available Budget with you.
8. Customer Satisfaction: % of Appreciation Letters received from the Total
projects executed, which shall determine the quality and effectiveness of
executing a given project.
9. Customer Complaints: Ensure to keep the Complaints to the minimum. A
complaint will not only be from Clients but also could be within KE and
need to be addressed to accordingly.
10. Billing: It shall be your responsibility to ensure that timely Billing is
made to the Client and ensure timely collection of Payment for ensuring
a consistent revenue generation.
11. Our offer shall clearly state “our scope of work”.
12. All MAS Approvals should be vetted prior submission for approval.
13. The preliminary offer must specify “Preferred Payment Terms / Preferred
Payment method / Destination point of the Delivery / Mode of Delivery
/ Guarantee/Warranty Terms.
