MNM4803
Assignment 3
(COMPLETE
ANSWERS) 2025 -
DUE 22 August 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
Course
Marketing Metrics (MNM4803)
Institution
University Of South Africa (Unisa)
Book
Marketing Metrics
1. Discuss three (3) ratios that can be used to measure sales team
performance and effectiveness. For each ratio, describe the formula, what
variables and measurements are required as input to the calculation, and
how management can interpret the result. (15)
Ratios to Measure Sales Team Performance
1. Sales-to-Quota Ratio
This ratio measures how well the sales team is meeting its assigned targets. It's a direct indicator
of the team's ability to achieve its goals.
Formula: Sales-to-Quota Ratio = (Total Sales Achieved / Total Sales Quota) x 100%
Variables and Measurements:
o Total Sales Achieved: The combined revenue or sales volume generated by the
entire team over a specific period (e.g., a quarter or a year).
o Total Sales Quota: The sum of all individual sales targets assigned to the team
members for that same period.
Interpretation:
o A ratio of 100% or more 💯 indicates the team is meeting or exceeding its sales
goals. This suggests effective strategy, motivated salespeople, and realistic
quotas.
o A ratio below 100% 📉 shows the team is underperforming relative to its targets.
Management should investigate the reasons, which could include overly
ambitious quotas, lack of training, or market challenges.
2. Customer Acquisition Cost (CAC) to Customer Lifetime Value (LTV) Ratio
This ratio assesses the efficiency and profitability of the sales team's efforts by comparing the
cost of acquiring a new customer to the value that customer brings over their lifetime.
Formula: CAC:LTV Ratio = Customer Acquisition Cost (CAC) / Customer Lifetime
Value (LTV)
Variables and Measurements:
Assignment 3
(COMPLETE
ANSWERS) 2025 -
DUE 22 August 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, Exam (elaborations)
Course
Marketing Metrics (MNM4803)
Institution
University Of South Africa (Unisa)
Book
Marketing Metrics
1. Discuss three (3) ratios that can be used to measure sales team
performance and effectiveness. For each ratio, describe the formula, what
variables and measurements are required as input to the calculation, and
how management can interpret the result. (15)
Ratios to Measure Sales Team Performance
1. Sales-to-Quota Ratio
This ratio measures how well the sales team is meeting its assigned targets. It's a direct indicator
of the team's ability to achieve its goals.
Formula: Sales-to-Quota Ratio = (Total Sales Achieved / Total Sales Quota) x 100%
Variables and Measurements:
o Total Sales Achieved: The combined revenue or sales volume generated by the
entire team over a specific period (e.g., a quarter or a year).
o Total Sales Quota: The sum of all individual sales targets assigned to the team
members for that same period.
Interpretation:
o A ratio of 100% or more 💯 indicates the team is meeting or exceeding its sales
goals. This suggests effective strategy, motivated salespeople, and realistic
quotas.
o A ratio below 100% 📉 shows the team is underperforming relative to its targets.
Management should investigate the reasons, which could include overly
ambitious quotas, lack of training, or market challenges.
2. Customer Acquisition Cost (CAC) to Customer Lifetime Value (LTV) Ratio
This ratio assesses the efficiency and profitability of the sales team's efforts by comparing the
cost of acquiring a new customer to the value that customer brings over their lifetime.
Formula: CAC:LTV Ratio = Customer Acquisition Cost (CAC) / Customer Lifetime
Value (LTV)
Variables and Measurements:
