The Sales per Rep KPI measures the ability of each of your sales reps or sales teams to generate revenue for your organization. By their very nature, sales teams are competitive, so providing ubiquitous access to this KPI may help foster a healthy level of competition amongst your team. It's important to provide your team with ambitious, but realistic goals to encourage them to go that extra mile (see "Sales Target").
One of the most important components of this KPI is to establish a baseline when comparing your sales reps. Not all sales reps are created equally (so to speak) and your baseline should account for differences such as seniority, location, and whether they are inbound or outbound sales. Otherwise, this KPI should be used as performance tool to foster improvement and growth within your team.
This KPI can also be used to hone in on the strengths and weaknesses of your sales reps. For instance, perhaps one sales rep performs poorly during in person contacts but performs exceedingly well when using email contacts (see "Sales by Contact Method"). By the same token, teams selling different products shouldn't be compared as the price, volume, and interest level may be very different.
- Revenue: Income received through sales activities.
- Contact method: The method by which your sales representative communicates with customers. Methods range from in person to self-service.
- Increased revenue for a single rep or team.
- Increased average revenue for all sales reps or teams.