The Power of Selling, 2010a

some performance KPIs and conversion KPIs that are commonly used to measure the effectiveness of
salespeople.
Performance KPIs
Sales quota (sales goal). Expected sales volume to be generated in a specific time frame; salespeople
are usually given quotas by day, week, month, quarter, and year, which may be used as the basis for
compensation and sales incentives.
Sales versus quota. Sales generated compared to the sales goal or quota by the salesperson during the
designated time frame; when a salesperson falls short of his sales goal, it is an opportunity for
improvement.
Gross profit. Difference between the cost of the product and the selling price.
Number of new accounts. Number of customers who were not doing business with the company
during the prior period.
Conversion KPIs
Sales per customer. Total sales generated by the salesperson divided by the number of customers;
high sales per customer indicates sales rep productivity.
Sales per employee. Total sales generated divided by the number of employees at the company; high
sales per employee indicate a productive sales force.
Customer penetration. The percentage of a customer’s business (in total dollars and across product
lines) that is being done with the salesperson; high penetration usually indicates a productive
salesperson (and usually a good relationship with the customer).
Cost per sale. The cost of generating the sale (cost of sales rep compensation, travel and
entertainment, marketing materials, promotional discounts, and other expenses); low cost per sale
usually indicates a productive salesperson who is able to close the sale quickly and at a higher gross
profit (and, therefore, lower cost).
First appointment-to-proposal ratio. The number of days it takes after a first appointment with a
prospect until a proposal is made; a low number of days usually indicates a salesperson who moves
quickly on an opportunity.
Closing ratio. The percentage of times that a salesperson coverts a prospect to a customer by making a
sale; a high closing ratio usually indicates a productive salesperson. [42]
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