Tracking sales productivity metrics and KPIs is one of the best ways companies can get actionable insights into sales processes and identify areas for improvement.
When you know how to leverage this data, you can streamline your company’s sales strategies, optimize team performance, and ultimately drive revenue growth.
In this article, we’ll discuss the essential sales productivity metrics and KPIs you need to track to improve your team’s productivity.
Here are the 38 metrics we’ll cover in this post. More detailed information about each metric is below the table.
| Metric Name | Description | Formula |
| Total Revenue | The total amount of money generated from the sale of goods or services before any expenses are deducted | Total Revenue = Unit Price × Number of Units Sold |
| Revenue by Product/Service | Income generated from each specific product or service offered by a company | Revenue by Product/Service = Unit Price of Product/Service × Number of Units Sold |
| Revenue Growth Rate | Percentage increase in a company’s revenue over a specific period | Revenue Growth Rate = (Current Period Revenue – Previous Period Revenue) / Previous Period Revenue × 100 |
| Revenue per Customer | Average amount of revenue generated from each customer over a given period | Revenue per Customer = Total Revenue / Number of Customers |
| Monthly Recurring Revenue (MRR) | Recurring, predictable income generated each month from subscription-based products | MRR = Number of Subscribers × Average Revenue per User (ARPU) |
| Number of Calls/Emails Made | Total amount of outreach efforts made by sales representatives within a specific time period | Number of Calls/Emails Made = Total Calls Made + Total Emails Sent |
| Number of Meetings Scheduled | Total number of appointments set by sales representatives with potential or existing clients | Number of Meetings Scheduled = Total Scheduled Meetings |
| Number of Proposals Sent | Total number of sales proposals delivered to potential clients | Number of Proposals Sent = Total Sent Proposals |
| Social Media Engagement | Interactions between a company and its audience on social media platforms | Social Media Engagement = (Total Interactions / Total Followers) × 100 |
| Number of New Opportunities | Count of new potential deals or leads that enter the sales pipeline | Number of New Opportunities = Total New Opportunities Added |
| Pipeline Value | Total potential revenue from all active deals in the sales pipeline | Pipeline Value = ∑ (Expected Revenue from Each Deal) |
| Deal Velocity | How fast deals move through the sales pipeline | Deal Velocity = Total Deals Closed / Average Time to Close a Deal |
| Conversion Rates Between Pipeline Stages | Percentage of leads that move from one stage of the sales pipeline to the next | Conversion Rate = (Leads Advanced to Next Stage / Total Leads in Current Stage) × 100 |
| Sales per Rep | Total sales generated by each sales representative over a certain period | Sales per Rep = Total Sales Revenue / Number of Sales Reps |
| Selling Time Ratio | Proportion of time sales representatives dedicate to direct selling activities compared to non-selling tasks | Selling Time Ratio = (Time Spent on Selling Activities / Total Time) × 100 |
| Lead Response Time | Average amount of time it takes for sales representatives to respond to a new lead | Lead Response Time = ∑ (Time of First Response − Time of Lead Creation) / Number of Leads |
| Average Sale Cycle Length | Average time it takes to turn a lead into a customer | Average Sale Cycle Length = ∑ (Days to Close Each Deal) / Number of Closed Deals |
| Number of New Leads | Total number of new potential customers acquired within a specific period | Number of New Leads = Total New Leads Acquired |
| Lead Source Performance | Effectiveness of different channels or sources in generating leads | Lead Source Performance = (Leads from Source / Total Leads) × Sales Conversion Rate |
| Lead Qualification Rate | Percentage of leads that meet the criteria for qualification as prospects | Lead Qualification Rate = (Number of Qualified Leads / Total Number of Leads) × 100 |
| Cost per Lead | Average cost to generate one new lead | Cost per Lead = Total Marketing Expenses / Total Number of Leads |
| Win Rate | Percentage of deals closed out of the total number of opportunities | Win Rate = (Number of Closed Deals / Total Number of Opportunities) × 100 |
| Quote-to-Close Ratio | Percentage of quotes that result in closed deals | Quote-to-Close Ratio = (Number of Closed Deals / Number of Quotes Sent) × 100 |
| Opportunity-to-Win Ratio | Percentage of sales opportunities closed | Opportunity-to-Win Ratio = (Number of Closed Deals / Total Number of Opportunities) × 100 |
| Customer Acquisition Cost (CAC) | Total cost to acquire a new customer | CAC = Total Marketing and Sales Expenses / Number of New Customers Acquired |
| Customer Lifetime Value (CLV) | Total revenue a business can expect to earn from a single customer throughout their relationship | CLV = Average Purchase Value × Number of Purchases per Year × Average Customer Lifespan (Years) |
| Customer Retention Rate | Percentage of customers a company retains over a specific period | Customer Retention Rate = ((Number of Customers at End of Period − Number of New Customers Acquired) / Number of Customers at Start of Period) × 100 |
| Customer Churn Rate | Percentage of customers who stop doing business with a company over a certain period | Customer Churn Rate = (Number of Customers Lost / Number of Customers at Start of Period) × 100 |
| Net Promoter Score (NPS) | Measure of customer satisfaction and loyalty | NPS = %Promoters − %Detractors |
| Gross Margin | Percentage of sales revenue a company keeps after deducting direct costs | Gross Margin = ((Total Revenue – COGS) / Total Revenue) × 100 |
| Average Profit per Sale | Average amount of profit generated from each individual sale | Average Profit per Sale = (Total Revenue − Total COGS) / Number of Sales |
| Discount Rate | Average percentage of discounts given on products or services over a certain time | Discount Rate = (Total Discounts Given / Total Sales Revenue) × 100 |
| Forecast Accuracy | How closely sales forecasts align with actual sales outcomes | Forecast Accuracy = (1 − (Forecasted Sales – Actual Sales) / Actual Sales) × 100 |
| Pipeline Coverage | Ratio of the value of potential deals in the sales pipeline to the revenue target | Pipeline Coverage = Total Value of Opportunities in Sales Funnel / Revenue Target |
| Weighted Pipeline Value | Total value of potential deals in the sales pipeline, adjusted by likelihood of closing | Weighted Pipeline Value = ∑(Opportunity Value × Probability of Closing) |
| Quota Attainment | Percentage of a sales rep’s target achieved over a certain period | Quota Attainment = (Actual Sales Achieved / Sales Target) × 100 |
| Sales Training ROI | Return on investment from sales training programs | Sales Training ROI = (Financial Gains from Training − Training Costs) / Training Costs × 100 |
| Employee Satisfaction Score | Measure of employee happiness and contentment at work | Employee Satisfaction Score = ∑(Individual Ratings) / Number of Respondents |
1. Revenue Metrics
Revenue metrics are data points that businesses use to measure their financial performance and the effectiveness of their revenue-generating activities. Here are the most important ones you should track:
Total Revenue
Total revenue represents the total amount of money generated from the sale of goods or services before any expenses are deducted.
It serves as the foundation for evaluating profitability, growth potential, and overall financial health. It also helps businesses understand their market position and guides strategic decisions.
To calculate total revenue, sum up the income earned from all sales transactions within a specific period.
You can follow this formula:
Total Revenue = Unit Price × Number of Units Sold
Revenue by Product/Service
Revenue by product/service measures the income generated from each specific product or service offered by a company.
It helps companies figure out which products or services are the biggest earners, helping them make decisions about pricing, marketing, and new additional products.
To calculate it, you need to sum the total sales for each product or service over a given period.
The formula is:
Revenue by Product/Service = Unit Price of Product / Service x Number of Units Sold
Revenue Growth Rate
Revenue growth rate displays the percentage increase in a company’s revenue over a specific period.
This indicates how quickly a company’s revenue is growing and is essential for assessing the company’s performance and potential for future expansion.
You can use this formula to calculate revenue growth rate:
Revenue Growth Rate = (Previous Period Revenue Current Period Revenue / Previous Period Revenue) x 100
Revenue per Customer
Revenue per customer, aka average revenue per user (ARPU), refers to the average amount of revenue you get from each customer over a given period. It provides insights into customer behavior, pricing effectiveness, and customer relationship management.
To calculate it, divide the total revenue by the number of customers during the period:
Revenue per Customer = Number of Customers / Total Revenue
Monthly Recurring Revenue (MRR)
Monthly Recurring Revenue (MRR) is recurring, predictable income that a business generates each month from its subscription-based products. It helps businesses understand their monthly financial health, track growth trends, and make data-driven decisions about scaling operations.
To calculate MRR, multiply the number of active subscribers by the average revenue per customer:
MRR = Number of Subscribers x Average Revenue per User (ARPU)
2. Sales Activity Metrics
Sales activity metrics track and measure the efficiency of your company’s sales team.
These are the most common sales activity metrics that sales organizations track:
Number of Calls/Emails Made
The number of calls/emails made tracks the total amount of outreach efforts made by sales representatives within a specific time period.
This common sales metric is important because it shows how active and engaged the sales team is. More calls and emails usually mean more opportunities to close deals and higher conversion rates.
To calculate this metric, simply count the total number of calls and emails made by the sales team over the chosen period.
The formula is:
Number of Calls/Emails Made = Total Calls Made + Total Emails Sent
Number of Meetings Scheduled
Number of meetings scheduled tracks the total number of appointments set by sales representatives with potential or existing clients within a specific time period.
It’s important for business leaders to track it because it shows the effectiveness of the sales team’s outreach and their capability to move qualified leads toward conversion.
To calculate this metric, you can use this straightforward formula:
Number of Meetings Scheduled = Total Scheduled Meetings
Number of Proposals Sent
Number of proposals sent shows the total numbers of sales proposals delivered to potential clients within a specific time frame.
This shows how hard the sales team is working to turn sales leads into actual deals by offering detailed proposals. More proposals sent usually mean more chances to close deals.
To calculate this metric, simply count all the proposals sent by the sales managers over the given period:
Number of Proposals Sent = Total Sent Proposals
Social Media Engagement
Social media engagement measures the interactions between a company and its audience on social media platforms. This includes likes, comments, shares, and similar forms of engagement.
It shows how well the company’s social media efforts are working, helping measure brand awareness and customer loyalty.
To calculate social media engagement, use this formula:
Social Media Engagement = (Total Interactions / Total Followers) x 100
3. Pipeline Metrics
Pipeline metrics measure the health and efficiency of your sales pipeline. They provide insights into the stages of the sales process, helping businesses understand how leads are progressing through the pipeline.
Here are some key pipeline metrics you can track:
Number of New Opportunities
Number of new opportunities is a pipeline metric that tracks the count of new potential deals or leads that enter the sales pipeline within a certain time period.
It’s essential for understanding the inflow of potential business and the effectiveness of lead generation efforts.
To calculate this key metric, simply count all the new opportunities added to the sales pipeline during the given period:
Number of New Opportunities = Total New Opportunities Added
Pipeline Value
Pipeline value represents the total potential revenue from all active deals in the sales pipeline. It gives a clear picture of the financial opportunities the sales team is working on.
It’s important because it helps predict future income, manage resources, and focus on the most valuable,
To calculate Pipeline Value, sum the expected company revenue of all active deals in the pipeline:
Pipeline Value = ∑ (Expected Revenue from Each Deal)
Deal Velocity
Deal velocity shows you how fast deals move through the sales pipeline, all the way from initial contact to closing.
Faster sales velocity means more revenue and better use of resources, which is why sales leaders use it to find and fix slow parts of the sales process.
To calculate this metric, divide the total number of deals closed by the average time taken to close a deal:
Deal Velocity = Total Deals Closed / Average Time to Close a Deal
Conversion Rates Between Pipeline Stages
Conversion rate between pipeline stages refers to the percentage of leads that move from one stage of the sales pipeline to the next.
This metric is important because it highlights the efficiency of the sales process and identifies stages where leads may be dropping off.
To calculate this metric, you can use the following formula:
Conversion Rate = (Leads Advanced to Next Stage / Total Leads in Current Stage) x 100
4. Productivity Metrics
Productivity metrics help you measure your sales department’s efficiency. Below, we’ll take a look at some of the common metrics related to productivity you should keep an eye on:
Sales per Rep
Sales per rep measures the total sales generated by each sales representative over a certain period.
This shows how well each person on the sales team is performing and how much they’re contributing to the overall sales.
To calculate this metric, simply divide the total sales revenue by the number of sales reps:
Sales per Rep = Total Sales Revenue / Number of Sales Reps
Time Spent Selling vs. Non-Selling Activities
Time spent selling vs. non-selling activities shows the proportion of time that sales representatives dedicate to direct selling activities compared to administrative or other non-selling tasks.
When companies understand this balance, they can identify areas where they can streamline processes or reduce administrative tasks.
To calculate this metric, track the total hours spent on selling activities and non-selling activities, then compute the ratio or percentage:
Selling Time Ratio = (Time Spent on Selling Activities / Total Time) x 100
Lead Response Time
Lead response time refers to the average amount of time it takes for sales representatives to respond to a new lead after an initial touchpoint. This metric helps see how quick and responsive your sales team is.
To calculate lead response time, record the time of lead creation and the time of first response, then compute the average for all leads within a specific period:
Lead Response Time = ∑ (Time of First Response − Time of Lead Creation) / Number of Leads
Average Sale Cycle Length
Average sale cycle length shows how long it takes, on average, to turn a lead into a customer. The shorter the sales cycle is, the more efficient the sales process.
To calculate the average sales cycle length, you can use the following formula:
Average Sale Cycle Length = ∑ (Days to Close Each Deal) / Number of Closed Deals
5. Lead Generation Metrics
Lead generation metrics show how well your marketing and sales team attracts and converts leads into actual customers. Here are some of the main ones you should track:
Number of New Leads
Number of new leads tracks the total number of new potential customers acquired within a specific period.
It’s important because getting a steady flow of new leads keeps the sales pipeline full and supports business growth.
To calculate this metric, simply count all the new leads generated during the given period:
Number of New Leads = Total New Leads Acquired
Lead Source Performance
Lead source performance evaluates the effectiveness of different channels or sources in generating leads. Businesses use it to identify the channels that are best at generating leads, so they can focus their efforts and resources on the most effective ones.
To calculate lead source performance, you can use the following formula:
Lead Source Performance = (Leads from Source / Total Leads) x Sales Conversion Rate
Lead Qualification Rate
Lead qualification rate refers to the percentage of leads that meet the criteria for your sales team to consider them as qualified prospects.
A higher lead qualification rate indicates that marketing team efforts are attracting the right audience, leading to a more efficient sales process and higher conversion rates.
To calculate it, use the following formula:
Lead Qualification Rate = (Number of Qualified Leads / Total Number of Leads) x 100
Cost per Lead
Cost per Lead (CPL) shows how much it costs, on average, to generate one new lead.
This metric is important because it helps companies check the return on investment (ROI) of their marketing campaigns and make better budget decisions.
To calculate CPL, divide the total marketing expenses by the number of leads generated:
Average Cost per Lead = Total Marketing Expenses / Total Number of Leads
6. Conversion Metrics
Conversion metrics measure the effectiveness of your conversion campaigns and how well you’re turning leads into actual customers. Here are some of the most common conversion metrics that companies track:
Win Rate
Win rate helps you calculate how many deals your sales team closes out of the total number of opportunities they had in a specific period.
This metric helps the entire team evaluate its success in converting opportunities into actual sales and find areas for improvement.
To calculate your win rate, use this formula:
Win Rate = (Number of Closed Deals / Total Number of Opportunities) x 100
Quote-to-Close Ratio
The quote-to-close ratio measures the percentage of quotes that result in closed deals.
To calculate it, divide the number of closed deals by the number of quotes or proposals sent and multiply by 100.
The formula is:
Quote-to-Close Ratio = (Number of Closed Deals/ Number of Quotes Sent) x 100
Opportunity-to-Win Ratio
Opportunity-to-win ratio shows what percentage of sales opportunities your team managed to close. It helps businesses see how well their sales strategies work and where to improve.
To calculate it, use this formula:
Opportunity-to-Win Ratio = (Number of Closed Deals / Total Number of Opportunities) x 100
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) shows exactly how much it costs your business to get a new customer. This metric includes all the money spent on marketing and sales to attract and convert prospects into customers.
It’s important because it helps businesses see how efficient their marketing and sales efforts are and whether they’re getting good value for their money.
To calculate CAC, use the following formula:
Customer Acquisition Cost (CAC) = Total Marketing and Sales Expenses / Number of New Customers Acquired
7. Customer Metrics
Customer metrics measure various aspects of customer behavior, customer satisfaction, and value. These metrics help businesses understand their customer base. Here are some key customer metrics explained:
Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) displays the total revenue a business can expect to earn from a single customer throughout their entire relationship with the company.
Understanding CLV helps businesses make informed decisions about customer acquisition and retention strategies.
To calculate CLV, multiply the average purchase value by the number of purchases per year and the average customer lifespan:
Customer Lifetime Value (CLV) = Average Purchase Value x Number of Purchases per Year x Average Customer Lifespan (Years)
Customer Retention Rate
Customer retention rate shows you how many customers your company retains over a specific period. It helps businesses understand their ability to keep customers and maintain long-term relationships.
Here is the formula you can use to calculate the customer retention rate:
Customer Retention Rate = (Number of Customers at End of Period − Number of New Customers Acquired / Number of Customers at Start of Period) x 100
Customer Churn Rate
Customer churn rate measures the percentage of customers who stop doing business with you over a certain period of time.
It’s important to track it because a high churn rate can indicate customer dissatisfaction and can negatively impact revenue and annual growth.
To calculate churn, use the following formula:
Customer Churn Rate = (Number of Customers Lost / Number of Customers at Start of Period) x 100
Net Promoter Score (NPS)
Net Promoter Score (NPS) shows how satisfied customers are by asking them how likely they are to recommend the company to others on a scale from 0 to 10. A higher NPS means customers are happy and loyal, which can lead to more customer retention, referrals, and growth.
To calculate NPS, use this formula:
Net Promoter Score (NPS) = %Promoters−%Detractors
8. Profitability Metrics
Profitability metrics show your organization’s ability to generate profit relative to its revenue, assets, and other financial factors. Here are some of the common metrics:
Gross Margin
Gross margin is the part of sales revenue that a company keeps after deducting the direct costs associated with producing the products/services it sells.
It’s important because it shows the efficiency of your company’s production process and its ability to manage costs.
To calculate gross profit margin, use this simple formula:
Gross Margin = ((Total Revenue – COGS) / Total Revenue) x 100
Average Profit per Sale
Average profit per sale measures the average amount of profit generated from each individual sale. It’s important because it shows if pricing and cost control are effective. A higher average profit per sale means the company is doing well in making money from its sales and managing costs.
You can calculate the metric using this formula:
Average Profit per Sale = (Total Revenue − Total COGS) / Number of Sales
Discount Rate
The discount rate shows the average percentage of discounts given on products or services over a certain time. It’s important to track it because too many discounts can cut into profits, but well-planned discounts can increase sales and bring in customers.
To calculate it, you can use the following formula:
Discount Rate = (Total Discounts Given / Total Sales Revenue) x 100
9. Sales Forecasting Metrics
Sales forecasting metrics help businesses predict future sales performance based on historical data, market share trends, and various internal and external factors. Here are some of the main ones:
Forecast Accuracy
Forecast accuracy measures how closely sales forecasts align with actual sales outcomes.
This helps businesses evaluate how reliable their sales predictions are and how effective their forecasting methods are.
Use this formula to calculate forecast accuracy:
Forecast Accuracy =(1−(Forecasted Sales – Actual Sales) / Actual Sales)x 100
Pipeline Coverage
Pipeline coverage shows the ratio of the value of potential deals in the sales pipeline to the revenue target for a certain period.
This metric helps see if there are enough potential deals to meet sales goals and whether the pipeline is strong enough.
To calculate it, divide the total value of opportunities in the pipeline by the sales target:
Pipeline Coverage =Total Value of Opportunities in Sales Funnel / Revenue Target
Weighted Pipeline Value
Weighted pipeline value shows the total value of potential deals in the sales pipeline, adjusted by the likelihood of closing each one. It gives a more realistic view of how much revenue might actually be brought in and helps prioritize which deals to focus on and use resources better.
To calculate the metric, you can use this formula:
Weighted Pipeline Value =∑(Opportunity Valuex Probability of Closing)
10. Team Performance Metrics
Team performance metrics evaluate the effectiveness, productivity, and efficiency of your sales team. Here are some of the main ones:
Quota Attainment
Quota Attainment shows the percentage of a sales rep’s target that they’ve achieved over a certain period.
It’s important to track it because it shows how productive the sales team is, helping businesses spot top performers and those who may need more help.
To calculate it, use this formula:
Sales Quota Attainment =(Actual Sales Achieved/ Sales Target)x 100
Sales Training ROI
Sales Training ROI shows how much return a business gets from its sales training programs by comparing the financial benefits to the costs. It helps companies see if the sales training is worth the investment.
You can use this formula to calculate your sales training ROI:
Sales Training ROI =(Financial Gains from Training−Training Costs/ Training Costs)x 100
Employee Satisfaction Scores
Employee Satisfaction Scores show how happy and content employees are at work. This metric is usually collected through surveys that ask about different parts of the job, like the work environment, management, job roles, and company culture.
It’s important because when employees are satisfied, they tend to be more productive, stay with the company longer, and have better morale.
The formula you can use to calculate it is:
Employee Satisfaction Score =∑(Individual Ratings)/ Number of Respondents
How Teramind Helps Improve Sales Productivity
Teramind is a powerful tool for boosting sales productivity, leveraging employee monitoring and analytics to enhance performance. Here’s how it contributes to increased sales productivity:
- Performance Monitoring: Teramind provides detailed insights into how sales teams spend their time. By tracking application usage, website visits, and task completion, it helps identify productive behaviors and areas needing improvement.
- Behavioral Analytics: It analyzes data to understand patterns and trends in sales activities. This allows sales managers to identify what strategies or actions lead to better outcomes, helping replicate successful team behaviors.
- Productivity Benchmarks: Teramind helps set benchmarks for productivity by comparing individual and team performance against industry standards or historical data. This helps sales teams understand where they stand and where they can improve.
- Training and Development: Insights from Teramind can be used to tailor training programs to address specific weaknesses or gaps in skills. This targeted approach to development helps improve overall team effectiveness.
- Process Optimization: By analyzing workflow and task efficiency, Teramind helps streamline sales processes, reducing bottlenecks and improving overall workflow.
FAQs
How do you measure sales productivity?
Sales productivity can be measured by tracking metrics such as revenue per sales representative, conversion rates, and pipeline value. These metrics help businesses assess the efficiency and effectiveness of their sales team and identify areas for improvement.
What are the three important sales metrics?
The three important sales metrics that businesses should track are revenue per sales representative, conversion rates, and pipeline value. These metrics provide insights into the performance and productivity of the sales team, helping identify areas for improvement and maximizing sales effectiveness.
What are KPIs in sales efficiency?
Key Performance Indicators (KPIs) in sales efficiency are metrics that measure the effectiveness of a sales team in achieving their goals. Examples include revenue per sales representative, conversion rates, and pipeline value, which help businesses identify areas for improvement and optimize their sales processes for better results.
What are KPIs for sales reps?
KPIs for sales reps include metrics such as revenue per sales representative, conversion rates, and pipeline value. These KPIs help businesses evaluate the performance and productivity of their sales team and identify areas for improvement to maximize sales effectiveness.
Conclusion
Tracking sales productivity metrics is crucial for informed decision-making and driving growth. Once you understand these sales KPIs, you can optimize your sales strategies and improve the individual performance of your sales reps.
And if you want to implement a metrics-driven approach, start by setting clear business goals, consistently monitoring your progress, and using data to make adjustments.
Are you ready to turn insights into action in your sales management?
