MNM4803
ASSIGNMENT 3 2025
UNIQUE NO.
DUE DATE: 22 AUGUST 2025
, Marketing Metrics Marketing Metrics
MNM4803 Assignment 3 2025
1. Ratios to Measure Sales Team Performance and Effectiveness
Measuring sales team performance requires both quantitative and qualitative indicators.
Ratios help management evaluate productivity, efficiency, and profitability. Below are
three key ratios often used in sales performance analysis.
1.1 Sales per Salesperson Ratio
Formula:
Total Sales Revenue
Sales per Salesperson =
Number of Salespeople
Variables Required:
Total Sales Revenue: The total value of sales generated over a specific period.
Number of Salespeople: The total count of active sales representatives in the
team during that period.
Interpretation by Management: This ratio indicates the average revenue generated
by each salesperson. A high value suggests that each salesperson is productive, while
a low value may point to inefficiencies, insufficient training, or an oversized sales force.
If the ratio improves over time, it reflects better efficiency, stronger client
engagement, or effective sales strategies.
If it declines, management may need to assess sales processes, territory
assignments, or staff motivation.
1.2 Sales Conversion Ratio (Close Rate)
Formula:
ASSIGNMENT 3 2025
UNIQUE NO.
DUE DATE: 22 AUGUST 2025
, Marketing Metrics Marketing Metrics
MNM4803 Assignment 3 2025
1. Ratios to Measure Sales Team Performance and Effectiveness
Measuring sales team performance requires both quantitative and qualitative indicators.
Ratios help management evaluate productivity, efficiency, and profitability. Below are
three key ratios often used in sales performance analysis.
1.1 Sales per Salesperson Ratio
Formula:
Total Sales Revenue
Sales per Salesperson =
Number of Salespeople
Variables Required:
Total Sales Revenue: The total value of sales generated over a specific period.
Number of Salespeople: The total count of active sales representatives in the
team during that period.
Interpretation by Management: This ratio indicates the average revenue generated
by each salesperson. A high value suggests that each salesperson is productive, while
a low value may point to inefficiencies, insufficient training, or an oversized sales force.
If the ratio improves over time, it reflects better efficiency, stronger client
engagement, or effective sales strategies.
If it declines, management may need to assess sales processes, territory
assignments, or staff motivation.
1.2 Sales Conversion Ratio (Close Rate)
Formula:
