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Sales Productivity

Sales productivity measures how effectively your sales team is using their time to win new customers. It measures how your organization uses tools, resources, and processes to achieve key business goals while reducing the time and costs associated with winning new business.

In order for your organization to be successful in today’s competitive environment, you need to be able to sell more products by using a variety of channels, such as digital marketing or social media marketing. This is where sales productivity comes in handy.

With the help of this tool, you can easily track how much time your team spends on selling products or services and how many leads they can generate every day without wasting their time on useless activities like reading emails or writing reports.

What is sales productivity?

Sales productivity refers to the efficiency and effectiveness with which a sales team can generate revenue. It is a measure of how well the sales team can convert leads into paying customers, and it is typically expressed as a ratio of the number of sales made to the number of hours spent on sales activities.

There are many factors that can impact sales productivity, including the quality of the sales team's training, the efficiency of their sales processes, the effectiveness of their sales tools and technologies, and the overall effectiveness of their sales strategy. Improving sales productivity can involve various activities, such as optimizing sales processes, investing in new sales technologies, providing sales training and coaching, and developing more effective sales strategies.

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How to increase sales productivity?

There are several ways to increase sales productivity:

  • Set clear goals and targets: Having clear goals and targets helps salespeople focus their efforts and measure their progress. Setting specific, achievable, measurable, relevant, and time-bound (SMART) goals can help salespeople stay motivated and on track.
  • Use sales technology: Sales technology, such as customer relationship management (CRM) systems, can help salespeople organize and manage their sales activities and customer interactions more efficiently.
  • Encourage teamwork and collaboration: Encouragement and collaboration among salespeople can help them share knowledge and ideas, and support each other in achieving their sales goals.
  • Monitor and review performance: Regularly monitoring and reviewing sales performance can help sales managers identify areas for improvement and provide feedback and coaching to salespeople.
  • Motivate and reward salespeople: Motivating and rewarding salespeople can help them stay engaged and motivated to achieve their sales targets. This can include offering incentives, recognition, and opportunities for advancement.
  • Streamline processes: Streamlining sales processes can help salespeople work more efficiently and effectively. This can include automating tasks where possible, simplifying forms and paperwork, and reducing unnecessary steps in the sales process.
  • Use analytics to identify trends and opportunities: Analyzing sales data can help salespeople identify trends and opportunities to increase sales. This can include analyzing customer data, market trends, and sales performance data to identify improvement and potential growth areas.
  • Create a sales culture of continuous learning: Encouraging a culture of continuous learning can help salespeople stay up-to-date on industry trends, new products and services, and best practices. This can include providing ongoing training and development opportunities and encouraging salespeople to seek new learning opportunities independently.
  • Foster a positive work-life balance: Providing support and resources to help salespeople manage their work-life balance can help them feel more motivated and productive. This can include offering flexible work arrangements, providing resources to help with time and stress management, and encouraging a healthy work-life balance.

How to measure sales productivity?

There are several ways to measure sales productivity. Here are a few common approaches:

  • Sales per employee: This is a simple measure of how much each salesperson sells. To calculate this, divide the total sales for a given period by the number of sales employees.
  • Sales per hour: This measure looks at the amount of time each salesperson spends selling and compares it to their sales results. To calculate this, divide the total sales by the number of hours each salesperson spends selling.
  • Sales per lead: This measure looks at how effectively salespeople convert leads into sales. To calculate this, divide the total number of sales by the number of leads generated.
  • Sales quota attainment: Many companies set sales quotas for each salesperson. This measure looks at how well each salesperson is meeting their quota.
  • Customer acquisition cost: This measure looks at the cost of acquiring each new customer, including marketing and sales efforts. To calculate this, divide the cost of acquiring new customers by the number of new customers.

What sales productivity metrics should you track?

Sales productivity metrics are measures that businesses use to assess the efficiency and effectiveness of their sales teams. These metrics can help businesses identify areas for improvement, set goals and targets for their sales teams, and track progress over time. Some common sales productivity metrics include:

  • Sales volume: This is the total amount of sales the team generates over a given period.
  • Sales revenue: This is the total amount of money generated by the team's sales over a given period of time.
  • Sales conversion rate: This is the percentage of converted leads into paying customers.
  • Average deal size: This is the average value of each sale made by the team.
  • Sales cycle length: This is the average time it takes for the team to close a deal.
  • Lead response time: This is the time it takes for the team to follow up with a lead after it is received.
  • Lead conversion rate: This is the percentage of leads converted into qualified leads.
  • Customer acquisition cost: This is the total cost of acquiring a new customer, including marketing and sales expenses.

By tracking these metrics, businesses can better understand their sales teams' performance and identify areas for improvement.

How to build a strategy to improve sales productivity?

To build a strategy to improve sales productivity, consider the following steps:

  • Identify your objectives: Determine what you want to achieve with your sales productivity strategy. This could include increasing sales volume, improving conversion rates, or reducing the sales cycle length.
  • Analyze current performance: Use sales metrics and data to assess the current performance of your sales team. This can help you identify areas for improvement and set realistic goals.
  • Identify bottlenecks and inefficiencies: Look for bottlenecks and inefficiencies in your sales process that are causing delays or hindering performance.
  • Implement solutions: Based on your analysis, address bottlenecks and inefficiencies. This could include using sales productivity tools, such as CRM or sales automation software, or implementing new processes or protocols.
  • Set goals and targets: Set specific, measurable, attainable, relevant, and time-bound (SMART) goals and targets for your sales team to work towards. These goals should be aligned with your overall business objectives.
  • Monitor and track progress: Regularly monitor and track progress against your goals and targets to ensure that your sales productivity strategy is effective.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Which tools help to improve sales productivity?

There are a variety of tools that can help businesses improve the productivity of their sales teams. Some of these tools include:

  • Customer relationship management (CRM) software: CRM software helps sales teams manage customer interactions and data throughout the customer lifecycle. It can also help teams track and manage leads, sales, and customer service.
  • Sales forecasting software: Sales forecasting software helps sales teams predict future sales and revenue based on historical data and other factors. This can help teams set realistic goals and allocate resources more effectively.
  • Sales automation software: Sales automation software helps sales teams automate repetitive tasks, such as sending emails and scheduling appointments so that they can focus on more high-value activities.
  • Sales gamification tool: Sales gamification uses game-like elements, such as points, rewards, and competitions, to motivate and engage sales teams. Gamification can be used to encourage sales reps to reach specific goals or targets or to foster healthy competition among team members. 
  • Lead tracking and management software: Lead tracking and management software helps sales teams track and manage leads from initial contact to conversion.
  • Project management software: Project management software helps sales teams track and manage tasks and projects and collaborate with other team members and stakeholders.

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