Sales Management at PerformanceBased Companies

Performance-based companies more frequently compensate sales and other staff at least partially on customer satisfaction scores. This type of business requires an effective and unique set of management tools in order to reach a customer and retain him. The aim of the paper is to prove, analyze and evaluate success factors of relationships and impact of these strategies on customer relations1.In order to build effective relations with customers, the organization and salespeople should investigate the preferences and needs of a customer group. In this case, salespersons should deal mainly with motivation, direction, and control. For example, effective communication has a great impact on sales, motivation, and direction. If management, therefore, can identify significant traits that indicate sales success, and test applicants for them, sales productivity should be increased2. To do this, some companies compare the characteristics of their most and least successful salesmen. Others start with sales tasks and objectives and impute the traits required. Still, others rely on general lists of characteristics of successful salesmen and try to establish tests that determine whether applicants have these traits.Although guidelines may be developed, particularly by analyzing sales-task requirements, there is no magic list of personal characteristics that assure success, since much depends on the motivation of individual salesmen. Procedures for selecting salesmen vary from simple informal interviews to interviewing committees aided by batteries of psychological tests. Companies are placing increasing reliance on test results, and many industries and firms have developed special psychological tests. To develop valid and reliable tests is a demanding activity3. Moreover, test results are not perfect predictors and should be considered simply another piece of information to be used in conjunction with other data.