MNM4803
Assignment 3
Due 22 August 2025
, Marketing Metrics
MNM4803 – Assignment 3 (2025)
1. Ratios for Evaluating Sales Team Performance and Effectiveness
Assessing a sales team’s performance requires more than raw numbers—it involves
analyzing both efficiency and effectiveness. Ratios provide management with structured
insights into productivity, profitability, and areas needing improvement. Below are three
commonly applied ratios in sales performance evaluation.
1.1 Sales per Salesperson
Formula:
Sales per Salesperson=Total Sales RevenueNumber of Salespeople\text{Sales per
Salesperson} = \frac{\text{Total Sales Revenue}}{\text{Number of
Salespeople}}Sales per Salesperson=Number of SalespeopleTotal Sales Revenue
Key Inputs:
Total Sales Revenue: The overall sales value within a set timeframe.
Number of Salespeople: Active representatives contributing to sales during that
period.
Managerial Interpretation:
This metric reflects the average revenue generated per salesperson.
A higher figure shows that individuals are performing productively, possibly due
to effective training, territory allocation, or strong customer engagement.
A lower figure may highlight inefficiencies, lack of motivation, or an oversized
team relative to demand.
Assignment 3
Due 22 August 2025
, Marketing Metrics
MNM4803 – Assignment 3 (2025)
1. Ratios for Evaluating Sales Team Performance and Effectiveness
Assessing a sales team’s performance requires more than raw numbers—it involves
analyzing both efficiency and effectiveness. Ratios provide management with structured
insights into productivity, profitability, and areas needing improvement. Below are three
commonly applied ratios in sales performance evaluation.
1.1 Sales per Salesperson
Formula:
Sales per Salesperson=Total Sales RevenueNumber of Salespeople\text{Sales per
Salesperson} = \frac{\text{Total Sales Revenue}}{\text{Number of
Salespeople}}Sales per Salesperson=Number of SalespeopleTotal Sales Revenue
Key Inputs:
Total Sales Revenue: The overall sales value within a set timeframe.
Number of Salespeople: Active representatives contributing to sales during that
period.
Managerial Interpretation:
This metric reflects the average revenue generated per salesperson.
A higher figure shows that individuals are performing productively, possibly due
to effective training, territory allocation, or strong customer engagement.
A lower figure may highlight inefficiencies, lack of motivation, or an oversized
team relative to demand.
