Using Performance Reviews to Evaluate Customers

Performance reviewsPerformance reviews are a tool that is usually employed by sales management teams as a way to measure the effectiveness of their workers. While this is a good barometer for representatives, it can also be used to examine the customers for each company.

This type of review can be used to determine whether it is worth pursuing a company further, as the amount of effort put into keeping the account open can be compared to the revenue that is brought in by the client.

Though a company may think to use this on existing customers, it may be most effective to use performance reviews before a client is on board with the company, according to Barrett Riddleberger, the chief executive officer (CEO) of Resolution Systems, Inc., a sales training and consulting firm.

“In order to prevent getting a customer that is going to cost you money and waste time, you need to define what your ideal customer is up front,” the executive noted.

Managers need to be able to tell how large the organization is and whether a mutual value exists, as a full review of the company might lead a representative to determine that the customer’s business is not worth the time and resource, according to Riddleberger.

While reviews can be helpful in determining the value of the account, managers may also use this tool to develop a more informed relationship with their customers. Sharing sales information is something that business owners are naturally protective of, but this type of meeting can lead to more beneficial client interactions, Entrepreneur.com reported.

Sharing sales data with customers may create more of a business partner relationship, transforming a representative into an associate instead of a vendor, according to the business website.

Post-sale assessments can also change along with the many factors that are influences on the relationship between a vendor and a customer.

“The reality is that it is a fluid environment,” noted Riddleberger. “As the economy changes and your business changes, your ideal customer profile will change.

If there is an economic downturn the vendor may be willing to provide more for less, and the same may work for the customer if there is a period of financial prosperity, according to the executive.