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Sales Productivity

What is Sales Productivity?

Sales Productivity measures how efficiently salespeople or sales teams generate revenue relative to the time and resources invested.

Higher sales productivity means more revenue generated per unit of time, cost, or effort, helping organizations optimize performance, lower acquisition costs, and hit targets faster.

How to calculate Sales Productivity?

Sales Productivity can be calculated in several ways depending on the organization’s focus, but the most common method is:

Revenue generated per salesperson within a defined period.

Or Revenue per hour/day spent on selling activities.

Step to calculate Sales Productivity

  • Step 1: Define the measurement period (monthly, quarterly, or annually)
  • Step 2: Identify the total revenue generated by the salesperson or team in that period
  • Step 3: Determine the input metric (time spent selling, number of sales reps, or total sales hours)
  • Step 4: Divide total revenue by the chosen input to get productivity
  • Step 5: Compare results across reps, teams, or historical periods to identify improvement areas

Formula to calculate Sales Productivity

Sales Productivity = Revenue ÷ Sales Inputs

Benchmark for Sales Productivity

A healthy benchmark balances high revenue output with high percentage of selling time.

Related Metrics for Sales Productivity

  • Quota Attainment
  • Win Rate
  • Sales Cycle Length
  • Average Deal Size

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FAQ's

It links both efficiency and effectiveness, helping companies understand not just how much salespeople sell, but how well they use their time and resources.

By automating admin work, improving lead quality, offering better sales enablement, and focusing on high-value activities.

Not necessarily, if high productivity is achieved by pushing low-margin deals or over-discounting, it may harm long-term profitability.