Measures the revenue or output a salesperson generates relative to their input (time, effort, or cost).
What it Measures ?
How much each salesperson sells.
Relevant StakeHolders
Sales Managers, Team Leads
Why it Matters ?
Tracks output per salesperson to evaluate performance and efficiency.
In-depth Use Case / Real-world Example
Sales Productivity assesses how effectively a salesperson or sales team converts their time and efforts into tangible revenue. For example, in a manufacturing company that sells industrial machinery, a salesperson spends a month reaching out to 100 prospects, holds 25 meetings, and closes 5 deals worth ₹2.5 crores. Sales productivity can be analyzed as revenue per rep, number of deals closed per contact, or revenue per hour worked. Tracking this KPI helps identify top performers, understand best practices, and flag inefficiencies. It can also be used to design better sales strategies by aligning targets with actual team capacity. In manufacturing, where the sales cycle is often complex and involves multiple decision-makers, boosting productivity may involve better lead qualification, improved sales enablement tools, or tighter collaboration with technical pre-sales teams. Regularly reviewing this KPI ensures sales efforts translate into profitable growth and helps management optimize team performance.
Sample Formula
Revenue Generated per Salesperson