How to Measure Sales Performance: 10 Sales Productivity Metrics to Track!

May 30, 2023
Diya Mathur
Diya Mathur
Diya Mathur
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In an article written for the Harvard Business Review, author Steve W. Martin points out that sixty-nine percent of salespeople who exceeded their annual quota rated their sales manager as being excellent or above average. 

The conclusion that should be drawn from this study is simple- an excellent sales manager can lead the sales team toward higher turnovers. 

But like it or not, there is a catch. Over the years, the question- ‘What does it take to be a successful sales manager?’ has been revised, dismantled, and rebuilt to fit into the evolving business ecosystem. 

Typically, the sales manager came from the ranks of top salespersons and was given a leadership role as a reward without sufficient training. 

These days, sales managers may still be hired from among top salespersons, but they are expected to engage with their salespeople, coach them and make way for higher profit/loss ratios. Most sales managers struggle to keep up with this ever-changing demand of the role resulting in an exhausted sales team with a significantly low output. 

The good news is that there is a remedy- well-researched strategies backed by Sales Productivity Metrics! 

So if you are a sales manager looking to boost sales performance, here are some sales productivity metrics to help you do just that!


Till date, sales managers face a conundrum: How do you measure sales performance? The easiest way out would be to look at traditional sales metrics like goal or quota achievement, but the looming question is if these are the most efficient metrics to refer to? 

The threat is real! 

Choosing the wrong sales productivity metrics could have serious consequences- sales inefficiency, demotivates reps and an overall dip in the organization’s sales performance.

Therefore, it is important to identify sales productivity metrics, such as the sales efficiency ratio that drill down into processes not just at the company level, but at the departmental and individual levels as well. Tracking these metrics with an intelligent sales tracker can provide valuable insights into your team's performance.

This is easier said than done! Identifying sales productivity metrics can be hard. Chances are that you have already adopted an industry-recognized sales productivity metric, and realized that it just does not work for your business. 

There is a way out! Where should you start? 

With the basics! 

Our organizational goals revolve around achieving specific objectives and driving growth. To attain these goals, we have developed comprehensive Sales Compensation Plans that serve as a key strategy. These plans incentivize and motivate our sales team to actively contribute towards our objectives. The individuals responsible for working towards these specific goals include our sales representatives, managers, and the sales operations team. They collaborate to execute the Sales Compensation Plans effectively and ensure alignment with our organizational vision.

  • Is the sales productivity metric specific?
  • Can you measure the performance of the sales productivity metric?
  • Is your sales productivity metric attainable?
  • Is your sales productivity metric relevant to the goals of your organization?
  • What is the timeframe for achieving this sales productivity metric? 

In fact, many organizations are now taking the leap from SMART to SMARTER by adding evaluate and re-evaluate to the acronym. Sales productivity metrics should be constantly revised and evaluated to make sure they remain realistic and relevant. 

When sales productivity metrics are properly evaluated and implemented, they have the potential to-

  • Solidify the company’s philosophy and mission statement
  • Unify employees to work towards a common goal
  • Hold people accountable for their performance

It is true that sales productivity metrics are company specific, and a sales productivity metric that is working wonders for one organization may not work for another. 

How can Sales productivity Metrics Increase Sales Performance?

Sales Performance

Sales performance metrics can increase sales performance in several ways:

  1. Clear Goals: Metrics help to set clear goals for sales reps, allowing them to focus on the areas that are most important to achieving success. This can lead to improved focus and motivation, in line with the principles of Management by Objectives (MBO).
  2. Improved visibility: Metrics provide visibility into key performance indicators (KPIs) that are critical to sales success, such as conversion rates, average deal size, and win rates. This visibility enables sales reps to identify areas for improvement and take action to address them.
  3. Better decision-making: With access to accurate and timely data, sales reps and their managers can make better decisions about how to allocate resources, prioritize opportunities, and focus on the most profitable customers.
  4. Accountability: Metrics create a culture of accountability, where sales reps are held responsible for meeting their goals and are rewarded for their performance. This can motivate them to work harder and more effectively.
  5. Continuous improvement: Metrics help to identify areas for improvement and track progress over time. This can lead to a culture of continuous improvement, where sales reps are constantly striving to improve their performance.

Overall, sales performance metrics are an essential tool for improving sales performance. By providing clarity, visibility, and accountability, they can help sales reps and their managers to focus on the right areas, make better decisions, and continuously improve their performance. With the aid of advanced data analytics and real-time insights, sales performance management becomes even more powerful in guiding businesses towards achieving their revenue objectives and staying ahead of the competition.

Here are three metrics right out of the magician’s hat that you can track for better insights into your sales performance!

10 Sales Productivity Metrics to Track for Better Sales Performance:

Here are some common sales productivity metrics:

  1. Sales Growth

    Sales growth measures the percentage increase or decrease in sales revenue over a specified period, and it stands as one of the most important sales productivity metrics. By incorporating tools like a Sales Pipeline calculator, this metric becomes instrumental in determining the trajectory of your sales—whether they are increasing or decreasing over time. To calculate sales growth, subtract the previous period's sales revenue from the current period's sales revenue and then divide the result by the previous period's sales revenue.
  2. Sales Pipeline

    The sales pipeline funnel serves as a visual depiction of the sales journey, monitoring the advancement of prospective customers through various stages. It provides insights into the number of leads present at each stage, their duration within the pipeline, and the necessary steps to propel them forward. A robust sales pipeline funnel indicates a consistent influx of leads and a heightened likelihood of successfully closing deals.
  3. Sales Cycle Length

    Companies often set a commission base as well as a commission rate to calculate their payable commission, and this process becomes even more streamlined with the aid of a Sales Mix Calculator. The commission base is the minimum revenue the salesperson must bring to be eligible for commission. While a commission rate is the percentage of the sales revenue that they will receive as a commission.
  4. Lead Response Time

    Lead response time measures how long it takes your sales team to respond to a lead. This metric is critical as it can directly impact your conversion rates. The faster you respond to a lead, the more likely you are to close a deal. Ideally, you should aim to respond to leads within minutes of receiving them.
  5. Lead-to-Customer Conversion Rate

    The lead-to-customer conversion rate measures the percentage of leads that convert into customers. This metric is a good indicator of the effectiveness of your sales process. If your conversion rate is low, you may need to improve your lead nurturing efforts or re-evaluate your sales pitch.
  6. Average Deal Size

    Average deal size measures the average dollar value of a closed deal. This metric is important as it can help you determine the revenue potential of your sales team. A higher average deal size means that your sales team is closing larger deals, which can lead to increased revenue.
  7. Sales Activity Metrics

    Sales activity metrics track the number of activities your sales team performs, such as calls made, emails sent, and meetings held. These metrics are important as they can help you identify top performers and underperformers, as well as opportunities for improvement. By tracking sales activity metrics, you can also ensure that your team is working towards their sales goals.

  1. Win/Loss Ratio

    The win/loss ratio measures the percentage of deals won versus the percentage of deals lost. This metric can help you identify the strengths and weaknesses of your sales team and your sales process. If your win/loss ratio is low, you may need to improve your sales pitch or offer additional training to your sales team.

    Make your operations data-centric. Calculate your Win Rate with Kennect's winrate calculator.
  2. Sales Forecast Accuracy

    Sales forecast accuracy measures how accurate your sales team's predictions are for future sales revenue. This metric is important as it can help you make informed decisions about resource allocation and budgeting. Explore sales accelerator examples to enhance your forecasting precision. A high sales forecast accuracy means that your sales team is making accurate predictions, which can help you make more informed decisions.
  3. Customer Lifetime Value (CLTV)

    Customer lifetime value measures the total revenue that a customer is expected to generate over their lifetime. This metric is important as it can help you determine the revenue potential of each customer and identify opportunities for upselling and cross-selling. By tracking customer lifetime, an efficient lead tracker template can provide invaluable insights into your team's performance.

Final Thoughts:

Tracking sales productivity metrics is not easy and best practices are still not laid out coherently. Therefore, an intelligent automation solution to track and monitor your sales productivity metrics, including the effectiveness of your sales deck, is exactly what you need.

To know more about how you can track your company’s metrics in real-time to boost sales performance, book a demo today!


Diya Mathur

Diya is a Product Marketing Associate and content writer specializing in Incentive Compensation Automation. Diya has honed her ability to bridge the gap between intricate software functionalities and accessible, reader-friendly content. Her articles are a testament to her dedication to breaking down intricate SaaS solutions into digestible insights that cater to both tech-savvy professionals and those new to the software landscape.


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Excellent blog about using sales coaching to improve the typical sales onboarding process! For more information please read the blog:


Loved the tips on effective sales coaching For more information please read the blog:

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