Blogs

In the sales and marketing industry, we need to know sales productivity vs sales efficiency and sales effectiveness It can be argued that these terms have a significant meaning for those in the business of improving sales. In practice, all three are often used to describe almost any type of sales improvement. This is where the issue begins. Let’s have a clear view at sales productivity vs sales efficiency and sales effectiveness. It is essential to know the difference between productivity, efficiency, and effectiveness in a sales team to be able to manage each of them effectively. As a productivity coach, it has certainly proven useful for me to see these as distinct terms so I thought it would be useful to put some definitions around them. In addition to providing structure for sales improvement initiatives, it facilitates a more thorough analysis of sales force issues. What is Sales productivity: As I see it, sales productivity results from sales processes that are efficient and effective. Any sales improvement effort must aim to increase productivity. When your salespeople become more efficient or effective, they are automatically more productive. According to research, companies were measuring productivity with metrics such as ‘revenue per representative’ or ‘percentage of representatives above sales target. A sales team’s productivity is simply the amount of sales they produce. What is Sales efficiency: Sales efficiency refers to the efficient allocation of sales resources. The most valuable resource in any sales team is time. Each day has the same number of hours for everyone. Therefore, in order for your sales team to perform efficiently you need to maximize the amount of productive time that they have in a day. By eliminating low-value activities, and replacing them with high-value activities, you will increase your productivity. For example, you might measure efficiency by assessing the number of sales calls per representative or frequency of sales calls. What is Sales effectiveness: The most important factor in determining the effectiveness of your sales force is not how you allocate its resources but how effectively you employ them. If you can get your sales representatives to make an additional 10 prospecting calls each week, you have achieved the goal of improved efficiency. The ability of your reps to execute those customer calls is a sure indicator of their effectiveness. From 10 calls, a more effective sales representative could generate more opportunities, while a less effective representative may create only a few. As a result of their improved performance, more effective salespeople will result in greater output from the same level of effort. For example you might measure effectiveness by ‘deal win rate’ and ‘percentage of successful sales calls’. In one example of how efficiency and effectiveness differ, someone said: Efficiency is about knocking on as many doors as you can; Effectiveness is about what you do when those doors open. There are two different forces at work that influence the productivity of your sales team, whether you call it ‘Will Vs. Skill’ or ‘Brawn Vs. Brain.’ Relationship between sales efficiency, effectiveness and productivity: The ultimate objective of good sales management is to increase efficiency and effectiveness, but you should approach these two factors differently. The easiest way to improve efficiency is simply to reschedule tasks to give more time to more productive work. Using just a little bit of discipline and thought, it is possible to improve efficiency today. You need to invest a lot more in improving effectiveness because it involves your sales team developing additional capabilities. To reach higher levels of sales effectiveness, there has almost always been a period of learning and adoption involved, whether it is through training, coaching, or implementing new sales tools. Regardless, it is always important to keep pushing forward on both fronts.  The ratio efficiency and effectiveness  can be used to calculate sales productivity. If, for example, a sales representative makes 60 Doctors calls each week (a measure of efficiency), and each call yields 1 Rx / call of value 500 (a measure of effectiveness), then productivity will be Rs.30,000 per week. You can, however, gain valuable insight into your sales improvement efforts by distinguishing the terms. Effectiveness, efficiency, and productivity in sales differ in subtle but important ways. You may buy software to boost your company’s efficiency, but it might not improve its effectiveness. Knowing the difference is critical for planning better. The sales productivity vs sales efficiency and sales effectiveness relationship is very much connected to one another. In summary, we can conclude these 3 points;  Book an Appointment

Do you believe that an organization should be committed to innovation and productivity in order to survive and thrive in a competitive globalized environment? Does your company is also looking for better pharmaceutical consultant and productivity coach? If yes, Diwakar Rijal has established himself as one of Nepal’s most trusted experts in transforming organizations and people to be agile and adaptable in this new scientific and technological advanced world. He has over twenty years of experience in the pharmaceutical industry and as a trainer/ coach and has helped organizations and people through his signature programs like, WASULI “ THE ART OF TAKING ROI”, LET THE DEAD LEAVES DROP, ONLY BABIES ARE BORN; A NEW ANALOGY OF PUBLIC SPEAKING, LEADING THE PURPOSEFUL CAREER, “HEALTH CARE PROFESSIONAL” HCPS SOFT SKILLS SESSION; DECISION MAKING, CONFLICT MANAGEMENT, COMMUNICATION, ADOPT TO CHANGE,  PREPARING REDEFINING AND CULTIVATING SALES FORCE STRATEGY, STRATEGIC BRAND PLAN, IS DIGITAL NEW NORMAL FOR PHARMACEUTICALS. Book An Appointment About Diwakar Rijal Mr. Diwakar Rijal; CEO of BaAma Consultant has delivered key-note addresses and WORKSHOP at APPON (Association of pharmaceuticals producers of Nepal), QbD Pharmaceuticals, Asian Pharmaceuticals, Adley, Zee laboratories; M.K. Healthcare, Simca Laboratories, Yetichem Distributors (sales  team of Roche; Neon and Covidien)  CTL Pharmaceuticals, Corel Pharmaceuticals, Innovative Pharma Lab, Biogain Remedies, Panas Pharmaceuticals, Aadee Remedies, PEAN (Pharmaceuticals Executive association of Nepal), Chirayu Poly Clinic, National Healthcare, Metro Hospital, Bharatpur Central Hospital and many more. With his interactive, energetic and practical teaching style, he inspires employees and managers to achieve greater productivity and success with his mantra “Sales Productivity is the key to organizational success”. Book An Appointment Need for Productivity and Creativity It is essential for business organizations to be creative and productive. Information and technology have revolutionized lives. In an era of such rapid change, only those organizations can survive that are nimble and can adapt in a VUCA world. As a result of Diwakar Rijal’s programs, employees can learn how to internalize the qualities of creativity and productivity. The following are some essential points that he emphasize the need for Productivity and Creativity: 1. Organizations should be forward-thinking Employees and organizations who are innovative are always searching for solutions to problems. Through his unique ideas and practical tips, Diwakar Rijal can help your organization become a problem solver and the leader in your niche domains.   2. Organizations must be capable of taking greater risks Several studies have shown that organizations that take more risks can continue to evolve. Taking risks for innovation does not have to involve everything being at risk. It means taking calculated risks, accepting shortcomings, and embracing change, says Diwakar Rijal.   3. Organizations should keep their employees productive and customers satisfied Inertia is a major problem for established businesses, which negatively impacts employee productivity. This leads to decreased customer satisfaction. Diwakar Rijal inspires people to challenge the status quo and discard conventional thinking methods. He shares Out-of-the-box thinking which creates  disruption in sales. Book An Appointment Things That Pharmaceutical Consultant and Productivity Coach Needs to Adapt Diwakar Rijal believes that every human being is born productive and innovative. A person’s innovative tendencies are held back by traditional business cultures and orthodox societal conditioning. As a trainer and speaker, Diwakar Rijal’s approach relies on the adoption of the following points: 1. The immediate goal of a company is growth, but that can be achieved by understanding the employees and the administration’s real pain points. 2. Be willing to accept change as the only constant and always strive to find new and innovative ways to solve problems. 3. The best way to increase productivity and innovation is to be creative, and this can be achieved if organizations cultivate cultures that foster creativity and openness to change. 4. People and organizations should be encouraged to be courageous and constantly think about how novelty can be introduced in the existing systems to bring about better results. 5. The challenges in the 21st century are more complex and fast co-relational thinking is the need of the hour for productivity and innovation.   Book An Appointment