This document discusses various measures for evaluating the effectiveness of direct and indirect sales performance. It outlines demographic factors, sales cycle analysis metrics, metrics for measuring the rate of change, ways to assess sales performance, considerations regarding sales methodology, and metrics related to customer relationship management systems. The overall goal is to identify the most important factors to analyze in order to improve sales processes and drive better business outcomes.

1. Sales Performance Measures
Measure Effectiveness -
Direct & Indirect Sales
Anand Subramaniam

2. “The most important thing about having
goals, is having one.”
- Geoffrey F. Abert
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3. Direct & Indirect Sales Measurement
Sales
Demographi Rate of
Methodolog
c Change
y
Measure
s
Customer
Relationshi Performanc
Sell Cycle
p e
Analysis
Managemen Assessment
t
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4. Demographics
 Market share
 Sales person ramp-up period
 Sales person to sales manager ratio
 Size of average annual target / market
 %age of sales force achieving quota
 %age of direct vs. indirect sales force
 %age of internal vs. external sales force
 %age company revenue by sales category
 %age company revenue by customer type
 Current annual sales person turnover rates
 Sales person to sales support personnel ratio
 Average years of sales experience by sales person
 Planned sales force size change over next four quarters
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5. Sales Cycle Analysis
 Average deal size
 Length of average sales cycle
 %age of proposals resulting in a sale
 %age of deals that close as forecasted
 %age of presentations resulting in a sale
 Number of calls required to close a deal
 # (average) days – from lead generation to conversion
 %age of initial meetings that progress to a presentation
 %age of leads that progress to an initial customer
meeting
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6. Rate of Change
 %age of new sales person hired
 %age change in competitive activity
 %age of new product introductions
 %age change in entry into new markets
 %age change in customer’s marketplace
 %age change in breadth of product line
offerings
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7. Performance Assessment
 # of new leads
 # of bids / proposals
 # of discounted sales
 # of win / loss reviews
 # of targeted prospects
 # of new reference sites
 # of new channel partners
 # of properly qualified prospects
 # of new case studies conducted
 # of customer care programs implemented
 # of new business from existing customers
 # of renewed business with existing accounts
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8. Sales Methodology
 Amount $ spent on customer training
 Annual $ spent in training / sales person
 Amount $ spent to revamp the sales
methodology
 Impact of sales methodology on
performance
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9. CRM
 $ spent on CRM user training
 CRM application adoption rate
 CRM vendor satisfaction rating
 # of CRM systems / vendors evaluated
 # days for CRM system implementation
 CRM project costs: actual vs. budget
 Impact of CRM on sales performance
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10. “Facts are stubborn things; and whatever
may be our wishes, our inclinations, or the
dictates of our passions, they cannot alter
the state of facts and evidence.”
- John Quincy Adams
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11. Good Luck
http://www.linkedin.com/in/anandsubramaniam
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