Establishing 'Making it Happen' as a 'Formal & Predictable' Discipline

Sales Leads Management	Sales cost and profitability management

Execution-MiH ENCYCLOPEDIA → Functional Management → SECTION - Sales & Distribution →

CHAPTER -

Sales Revenue Management

It's the numbers game in sales. Revenue management is analyzing the targets v/s actuals.

Topics

Sales Revenue Management

This pages gives the overview of the Sales Revenue Management function. It provides a high level view of the business objectives, key business questions and success drivers.

Sales Revenue SWOT

This Page gives you the Strengths, Weaknesses, Weaknesses and Threats of Sales Revenue Management function.

Sales force density

If you meet a traditional sales person, he may come up with a simple rule 'Sales is a simple function of the number of sales people you have unleashed on the customer'. This may look like at shotgun approach, but followed by most of the sales executives in different shades. The multiplicity of channels, 3rd party distributors etc are essentially in effort to increase the sales force density and geographical coverage.

Sales geographic expansion

Geographical spread is linked to the 'width' of your presence. Sales managers define the target customers and business potential to get the sanction for expanding the presence to the new geographies. This is not a simple sales presence expansion. As you decide to expand your geographical presence in terms of distribution, you also have to expand your supply chain, delivery, and after-sales servicing capabilities to those geographic locations (this will be discussed in the supply chain management).

Sales productivity

Sales force productivity along with sales force density completes the equation for sales revenue. Sales force productivity can be defined as the quantum of sales done by a sales person in a given period of time.

Sales velocity (or speed of sales)

Typically the sales force productivity has a direct relationship with the sales velocity. However, it is technically possible to have a low sales velocity, but still having high sales productivity. This is because some product or market conditions inherently extend the time it takes to close a sale.

Sales strike rate

Sales strike rate is another fine component apart from sales velocity and sales productivity which defines the sales performance of a sales person. The reason we have placed it as a separate component is because, technically speaking you can have a good sales velocity (turnaround time from initiation to sales closure for every sale closed) or sale productivity (sales units and value per sales person per period of time) but still a low strike rate in terms of %age of sales leads which finally resulted in sales closure.