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Sales Goals for Telemarketer

Setting goals for your sales force is a balancing act: the goal should be high enough to be challenging but not so high that there is little chance of making it - that will just depress the sales force. In telemarketing sales, only one "completed contact" (the telemarketer gets to finish the pitch on the phone) in 20 ends up turning into a "sale." Suppose for this example that a telemarketer makes 25 completed contacts in an hour.

a) What is the expected number of sales in an hour? In a ten-hour workday?

b) If you wanted to set a sales "goal" per workday that your regular telemarketers would hit, using current practices, only about 20% of the time (that is, about once a week), what would that workday sales goal be? [The probability of hitting the goal would be sales of that number of higher.]

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a) What is the expected number of sales in an hour? 1.8
In a ten-hour workday? 18

b) If you wanted to set a sales "goal" per workday that your regular ...

Solution Summary

This solution calculates the expected number of sales in an hour and a ten-hour workday. It also proposes a sales goal to achieve during a workday.

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