Sales team Metrics

Tae Hea Nahm

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Bob Tinker

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Sales team Metrics

Team efficiency metrics can help you evaluate the productivity of your silos.

Think of each team as a little black box with inputs and outputs. In the example below, Sales resembles a black box with:

  • Inputs: New pipeline (the dollar amount, # deals, and quality)
  • Outputs: Wins (the dollar amount and # deals) and % of customers who fit the Ideal Customer Profile

Here are key metrics for analyzing the health of the sales black box:

Sales Team Metrics

  • Sales rep metrics
  • New ARR (TCV) per sales rep — the average performance
  • New ARR (TCV) by sales rep — see the whole distribution
  • Quota metrics
  • Quota per sales rep — the target for the financial model (bookings forecast and commission). This is a key model assumption.
  • % of Quota — the average performance, New ARR/Quota
  • % of sales reps who make quota
  • Quota / sales costs — is the quota target economically viable?
  • Commission….
  • Sales capacity metrics
  • Amount of sales capacity — # reps x Quota
  • Sales Capacity/Forecast (known as the coverage ratio) — <100% implies the forecast is unreasonable. > 120% implies inefficient sales.
  • # ramped sales reps
  • Sales rep ramp time
  • Pipeline metrics
  • Conversion rate
  • Conversion time (average sales days)
  • Amount of pipeline at beginning of quarter
  • Amount of pipeline generated in the quarter

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