Being a sales manager is a tough job.  They are responsible for leading their sales team to successful performance. 

Many manager competencies are required: 

  1. Planning
  2. Monitoring and Evaluating Results
  3. Coaching
  4. Leadership
  5. Motivating Others
  6. Designing Effective Training Programs
  7. Analysis
  8. System Development.

Selling has become increasingly complex over the last 20 years.  That is why Sales Manager Performance Assessments are needed.  There are hundreds of factors that affect sales performance. How effectively can your Sales Manager discuss each of the Key Sales Performance Drivers that have the biggest impacts? 

Sales Revenues

The number of units sold multiplied by price.  It represents the starting point for a company to determine net income.

Average Sales Profits

The average profit generated from the sale of a product or service.

Sales Goals and Plan

A written plan that lays out the goals, objectives, tactics, targets and potential obstacles.

Competitor Pricing

A pricing method that involves setting your prices in relation to the prices of your competitors.

Sales Cycle Length

The total number of days needed to close each sale added together then divided by the number of sales.

Customer Life-Time Value

The average customer’s revenue generated over their entire relationship with the company.

Sales per Rep

The sales revenue generated by each salesperson during a specific period of time.  The sales revenue of each rep can be added together then divided by the number of reps to determine average sales per rep.

Number of Qualified Leads Generated

A prospective customer that has been researched and vetted. 

Average Cost per Qualified Lead

The average cost of marketing to acquire one new prospect.

Leads to Conversion Rates (Close Ratio)

The number of deals closed divided by the number of formal price quotes.

Customer Retention or Churn Rates

The percentage of existing customers who remain customers after a specific period of time.

Most Common Objections

The specific reasons that prevent a customer from buying.

Ways of Overcoming Common Objections

The specific tactics used to overcome specific objections.

Articulates Unique Value Propositions

A simple statement that summarizes why a customer would choose your product or service.

Clarifies the Consultative Sales Process

A specific sales approach where the sales reps act more like advisors than salespeople, where they recommend specific solutions to potential customers based on the customer’s needs and problems.

Identifies Key Decision-Makers for Buying

The individual who has final decision-making authority over the purchasing decision.

Ways of Positioning the Customer’s Solutions

Positioning based on product or service attributes.  Positioning based on Price (e.g. discounts).  Positioning for a specific use.  Competitive positioning.

Customer Referrals 

Referrals are a key sales performance driver that can make or break the business.  The sales manager should monitor the number of referrals generated. If you are getting referrals where do they come from and how can you ensure you keep getting them?


Price is likely the most important of all the sales performance drivers. Price has a direct impact on profit, every extra dollar you make goes straight to profit. Evaluating pricing is a key part of any sales strategy.

Sales Rep Turnover Costs

Average sales rep turnover is about 35 percent.  The cost of turnover is typically estimated at 1.5 times annual compensation.  It is also estimated that is takes about 6 months for a new sales rep to ramp up to full productivity. Sales rep turnover has a big impact on the bottom-line.

Contact us for Sales Manager Performance Assessments. 

Also, check out the blog How to Interview and Hire Your Next Manager for the Top 25+ Questions You Should Ask to hire a great manager.

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