How to Calculate Sales Productivity
Sales productivity measures how efficiently your sales team generates revenue. It's a key metric for evaluating team performance and resource allocation.
The Sales Productivity Formula
Key Productivity Metrics
- Revenue per Rep: How much revenue each rep generates on average
- Monthly Revenue per Rep: Normalized monthly performance metric
- Productivity Ratio: Revenue generated per dollar spent on sales (3:1 target)
- Sales ROI: Return on investment for sales operations
Improving Sales Productivity
- Hire the Right People: Skills, experience, and cultural fit matter
- Invest in Training: Continuous coaching and skill development
- Enable with Tools: CRM, sales intelligence, automation
- Improve Lead Quality: Better targeting and qualification
- Remove Non-Selling Tasks: Automate admin work
- Optimize Sales Process: Remove friction and bottlenecks