Average Revenue Per Sales Rep
Lower is better
How is Average Revenue Per Sales Rep calculated?
To calculate the average revenue per sales rep, you'll want to take all the revenue within a given time period and divide that by the number of sales reps within your organization. You'll want to omit any revenue generated through any self-service channels or any other channel where a sales rep was not involved in the sale.
What is Average Revenue Per Sales Rep?
This KPI helps organizations determine the efficiency of their sales teams. Since this metric only includes revenue generated by sales where a member of your team was involved, you'll be able to easily see how much your sales team affects your bottom line. Ideally, the average revenue per sales rep should exceed the amount that each sales rep is compensated. If it's not, you'll want to immediately revisit either your compensation strategy or the health of your current sales pipeline. It's important to note that the compensation of your reps should scale equal to the revenue that they bring in.
Why is Average Revenue Per Sales Rep important?
This metric helps you understand the impact of your sales teams on your bottom line and monitor the efficiency of your sales pipeline.
Start tracking your Average Revenue Per Sales Rep
Create a KPI for Average Revenue Per Sales Rep to monitor it over time and an OKR to track your impact against it in Commonality.