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How To Measure Sales Productivity

How To Measure Sales Productivity

The average sales professional spends less than 30% of their time actually selling, according to LinkedIn. Why? Simple: Non-selling activities have entirely consumed their time. Fortunately, you have a few options for fixing the problem. You can firstly discover how to measure sales productivity. By doing this, you can see where your reps are wasting the most time. And replace those activities with ones that are more productive.

Measure Sales Productivity even though It Is Difficult

Although measuring sales productivity is important, it can be difficult. This is due to the abundance of data that sales managers like you have at their disposal. Depending on the specific sales process used by your organization, you must choose which data elements are important and which are not if you want to measure sales productivity efficiently. It necessitates some trial and error.

The good news is that you’ll finally determine which indicators are important. You merely need to keep tabs on them all for a while to determine how important they are to your efforts.

Let’s examine the most significant ways to measure sales productivity available at this time with that in mind. You can then choose which one you wish to try out first in this manner.

Some Metrics To Track and Measure Sales Productivity 

Are you prepared to gauge the productivity of your sales team? Next, monitor and assess these 14 metrics. Each will provide you with more detail regarding the effectiveness of your department.

The quantity of finished sales activities

You must make sure that each team member completes a specific number of sales activities if you want to meet your department’s sales targets. Said sales activity could involve in-person meetings. Follow-up phone calls, emails and messages to current clients, among other things.

Monitor this indicator to make sure your reps are working hard to succeed. Then assess it frequently to determine whether or not your reps are productive.

This is a cinch with tools like SPOTIO, which comes with a performance reporting package.

Lead generation rate

Your sales representatives should get measurable results from their sales activity. One of these outcomes will (hopefully!) be a mountain of hot prospects that your team can approach. And close business with.

Generally speaking, your reps will be more effective if they generate more leads each day. Ensure only that they produce high-quality leads. Even if your sales representatives develop contacts very efficiently. They won’t help your business if they never make a purchase.

Chances Made Available to Measure Sales

What makes a tip different from an opportunity? Leads are possible clients. Chances are people or companies that could do something.

Leads are important. If they don’t turn into real chances to make money, you won’t sell.

To keep track of the chances and speed of reps. This shows how well your techniques for getting leads are working.

Chance Losses

Getting leads and turning them into sales takes time. If these customers don’t buy, your salespeople will waste time. For your workers to be more productive, they need to cut down on this.

Without software, divide the number of chances your team missed by the number of chances it made. Then increase by 100. There should be a number for the answer.

If you get 100 chances and miss out on 20, your chance loss rate is 20% (20/100 x 100 = 20).

Chance Beats

The opposite of opportunity loss is an opportunity win.

This metric tells the sales team how many leads turn into customers. in terms of percentages. Divide the number of deals you closed by the number of chances you went after, and then multiply by 100.

Your team’s opportunity win rate is 20% [(40/200) x 100 = 20] if they explore 200 different possibilities and turn 40 of them into paying clients.

When sales teams close more deals, they are more effective.

Rate of Close

It might seem like the chance wins measure and the close sales rate measure are the same. They are not the same.

The close sales rate shows how many leads your team closes, while the opportunity wins rate shows how many chances your team turns into sales. Another important KPI for sales success.

Sales close rates will show your salespeople’ performance. If they get a lot of opportunities but not many sales, it could be because they are getting bad leads. To help your team fix this, change your buyer profiles, how you generate leads, etc.

Divide results by leads to get your team’s sales close rate. Divide by 100.

Your sales close rate is 10% [(100/1,000) x 100 = 10] if your team generates 1,000 leads and 100 of them turn into paid customers.

Typical Size of a Deal

Sales reps can be more productive if they close bigger deals. The average deal size measures this.

To figure out this KPI, divide the number of deals won by their value. If your sales team gets $100,000 from 250 sales, then the average sale is worth $400 ($100,000 divided by 250 is 400).

Don’t waste the time of reps on small things that don’t matter. Help them find ones that pay better. Most likely, their extra work will pay off.

Make sure they can close on their big deals. If you don’t, your team will work even less.

Sales go up

Growth can be tracked week-to-week, month-to-month, and year-to-year. Leaders in sales can use annual growth to assess their strategies. You pick the unit of measure.

To figure out sales growth, subtract the sales of your team from the sales you already have. Take the number of previous sales and divide it by 100.

Growth from one year to the next is generally a good thing. Your sales department is more busy. Try to get better at this.


Your sales team should bring in more money than the month, quarter, and year before. If it does, your reps might be more useful than you think.

Income and profit are not the same. Avoid overspending. This makes it hard to measure sales productivity.

SaaS companies often use ARR or MRR to show their total revenue. Divide the total amount of your company’s contracts by the length of the contracts (in months or years).