Determining the Size of a Sales Force

Objective of Sales Force Sizing

• Maximize Resources: Primary goal to efficiently use available resources.
• Maximize Sales Force Time:
  • Increase time spent with each customer.
  • Enhance customer spending.
• Maximize Productivity: Improve efficiency and output of sales team.
• Improve Sales Results:
  • Boost customer satisfaction and outcomes.
  • Facilitate contracts and agreements.

Main Considerations

• Budget and Return: Critical consideration as noted by Donaldson (2009).
• Task-Based Size:
  • Dependent on tasks such as presentations, stock display, report writing, and negotiation.
  • Tasks may require different numbers of salespeople.

Formula for Determining Sales Force Size

• Use specific formulas to calculate needed sales agents.
• Consider historical data on sales agent usage if available.
• If launching a new activity, apply established formulas to determine size.

Workload Method

• Based on Sales Revenue per Customer:
  • Evaluates time spent on each customer.
• Steps Involved:
  1. Determine total work time available per seller.
  2. Allocate work time for selling activities.
  3. Group customers by sales volume potential.
  4. Decide on call length and contact frequency.
  5. Calculate total workload.
  6. Calculate required salespeople based on workload.

Rational Process Method

• Based on Skill and Task Needs:
  • Similar approach to workload method.
• Steps Involved:
  1. Analyze organizational needs and tasks.
  2. Structure sales force from the bottom-up.
  • Ensure salespeople understand their tasks and possess necessary skills.

Additional Notes

• Ensure availability of salespeople aligns with task demands.
• Historical insights can guide effective sales force sizing.

Note: These methods and considerations provide a framework to optimize sales force size and maximize effectiveness.