MNM4803 Assignment 3,
1. Sales Growth Rate
Formula:
Current Period Sales − Previous Period Sales
Sales Growth Rate (%) = × 100
Previous Period Sales
Variables / Inputs Required:
Current Period Sales (e.g., monthly, quarterly, or annual sales revenue)
Previous Period Sales (same time frame as above)
Interpretation for Management:
Positive growth indicates the sales team is improving revenue generation over
time.
Flat or negative growth signals potential issues — market slowdown, declining
customer base, or ineffective sales tactics.
Management can compare against industry averages or internal targets to
assess competitiveness.
2. Sales Conversion Rate
Formula:
Number of Sales Closed
Sales Conversion Rate (%) = × 100
Number of Leads or Opportunities
Variables / Inputs Required:
Number of Sales Closed (successful deals in a given period)
, Number of Leads or Opportunities (potential customers approached or
recorded in CRM)
Interpretation for Management:
High rate → sales team is effective at turning interest into actual revenue.
Low rate → possible issues with lead qualification, sales pitch quality, or follow-
up processes.
This ratio helps management identify training needs, improve scripts, or adjust
targeting.
3. Average Revenue per Salesperson
Formula:
Total Sales Revenue
Average Revenue per Salesperson =
Number of Salespeople
Variables / Inputs Required:
Total Sales Revenue for a defined period
Number of Salespeople actively selling during that period
Interpretation for Management:
Reveals individual productivity relative to team size.
Can highlight top performers or detect underperformance in certain
regions/territories.
Useful for resource allocation — e.g., whether adding staff could proportionally
increase revenue.
Summary Table:
1. Sales Growth Rate
Formula:
Current Period Sales − Previous Period Sales
Sales Growth Rate (%) = × 100
Previous Period Sales
Variables / Inputs Required:
Current Period Sales (e.g., monthly, quarterly, or annual sales revenue)
Previous Period Sales (same time frame as above)
Interpretation for Management:
Positive growth indicates the sales team is improving revenue generation over
time.
Flat or negative growth signals potential issues — market slowdown, declining
customer base, or ineffective sales tactics.
Management can compare against industry averages or internal targets to
assess competitiveness.
2. Sales Conversion Rate
Formula:
Number of Sales Closed
Sales Conversion Rate (%) = × 100
Number of Leads or Opportunities
Variables / Inputs Required:
Number of Sales Closed (successful deals in a given period)
, Number of Leads or Opportunities (potential customers approached or
recorded in CRM)
Interpretation for Management:
High rate → sales team is effective at turning interest into actual revenue.
Low rate → possible issues with lead qualification, sales pitch quality, or follow-
up processes.
This ratio helps management identify training needs, improve scripts, or adjust
targeting.
3. Average Revenue per Salesperson
Formula:
Total Sales Revenue
Average Revenue per Salesperson =
Number of Salespeople
Variables / Inputs Required:
Total Sales Revenue for a defined period
Number of Salespeople actively selling during that period
Interpretation for Management:
Reveals individual productivity relative to team size.
Can highlight top performers or detect underperformance in certain
regions/territories.
Useful for resource allocation — e.g., whether adding staff could proportionally
increase revenue.
Summary Table:
