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December 31, 2015

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Quite often we will employ sales staff with limited or no accountability.  As a matter of good business practice all sales staff should be enlightened as to their expected performance, with metrics, throughout the whole sales cycle.  Sounds simple enough but quite often not done.  

The Sales per Person KPI is a simple measure consisting of "Sales" and "Person equivalents".  The resultant calculation will provide an average Sale number generated per person.  The measure is useful as a quick indicator of sales trends and actual average performance.  

Being an average, this KPI will not reflect individual performance results.  Further, it can be misleading or it can influence sales behaviour that may lead to less profitable outcomes.  To further enhance effectiveness, sales per person needs to be looked at in the context of margin, sales costs, line items sold and even sacrifices to credit terms and conditions.  

Additionally, to enhance the effectiveness of this metric, sales should be relegated to non-recur ring sales.  

This is a simple yet effective measure within the context of its use - nothing more.

To calculate Sales per Sales Person:    Sales / Full Time Equivalent Sales staff

For more information www.ezzykpi.com

 

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