11 sales productivity indicators you should know

In a company, the sales team is a fundamental part since, through it, people or other companies come to acquire the services, products, or systems of that company, which is converted into income, which the companies manage to survive. But what are the strategies used to improve the productivity of a sales team, and how is it measured?

In this article, we resolve to study the following points:

1. Definition of productivity
2. How is productivity measured?
3. The work of a sales team
4. Measuring productivity in sales
5. Productivity indicators

Definition of productivity

Productivity is the performance of different activities in an estimated time, generally focusing on the effectiveness of a team and its efficiency in performing a task. While that team completes the job, it manages time effectively, i.e., the study is done correctly in a shorter time.

How is productivity measured?


A company's team's productivity is measured using KPI (Key Performance Indicator) or Key Performance Indicator. These are indicators that can be measured, compared, and monitored to see the performance of an employee, or in this case, of a team, and can even be used to see the productivity of a project or process and thus be able to know which strategies work and which do not, so you can have a basis (data) to make decisions.

The work of a sales team

The sales team in a company is in charge of accompanying the customer in their buying process to guide and advise that person so that it can influence the customer's decision positively, leading to the acquisition of the product, system, or service.

Some of the functions of a sales team are:

1. Connecting with people and thus acquiring customers.
2. Convert prospects into buyers
3. Retain the customer to maintain a long-term relationship with the customer.
4. Grow the business by increasing revenue.

As for technology, it helps to increase sales team productivity, as indicated in the blog Digital Capabilities Improve Sales Team Productivity.

Measuring sales productivity

To know if the sales team is being productive and giving benefits to the company, should measure it in this way:

(SALARY + BENEFITS + TRAINING + TECHNOLOGICAL RESOURCES) vs. THE INCOME THEY SUPPORT IN SALES FOR THE COMPANY.

If this does not result in negative numbers, the sales team is productive, so it is a plus for the company instead of a group that does not provide economic benefits.

To learn how to create a sales process, visit The Ultimate Guide to Creating a Sales Process blog.

In addition, there are many other factors to measure the sales team's productivity, which we will see below.

Productivity indicators

Productivity indicators function as parameters to measure both the productivity of employees and the actions of individual salespeople and their behavior with customers, as well as the measurement of new customers, those who remain, and those who buy, among others.

 Some productivity indicators are:

1. Sales goals or objectives: these are set for specific times and must be clear, measurable, and concrete, i.e., achievable within a particular time.
2. The number of sales or turnover: This number can be compared with the sales of a previous year or specific period, and it can also be a team or a collaborator.
3. Sales growth: Can be as turnover or the number of people who made purchases compared to previous months or the previous year. 
4. Lost customers: the number of people who no longer buy and were previously customers.
5. Customer satisfaction: this satisfaction rate establishes the quality of the relationship between the employee and the customer, as well as the product.
6. Complaints and claims: in this case, it works as customer satisfaction. With this, we can see the points of improvement of the product and the service given by the company's employees.
7. The conversion rate leads to customers: the number of new customers concerning previously determined times, concerning a salesperson or the entire team.
8. Time taken in the sales cycle: from the moment the process starts until the customer makes the purchase, it determines the employee's skills to guide and advise the customer.
9. Time taken in the sales cycle: from the moment the process starts until the customer makes the purchase, it determines the employee's skills to guide and advise the customer.
10. Net profit: this shows the total profit of the team and works as explained in the sales productivity measurement section.
11. Weekly meetings: this determines how close the employee is to the customer and the conversion rate of these meetings into sales made.
12. Hours worked on a single project vs. results: this should be measured as it can determine the percentage of success from one task to another and see if it is the number of hours focused on the project or different strategies that determine the result.

In measuring a sales team's success regarding lead conversion, customers, and revenue, it is essential to know these indicators and their application. In this way, it is possible to measure if the strategies are working, if they need to be changed if a person is not performing well or the team itself, and if the unit is worth the company's revenue.