Sales productivity is a relatively simple concept. It’s the relationship between a salesperson’s input (i.e., their efficiency) and their output (i.e., their effectiveness).
- Sales efficiency: This is all about optimizing a sales rep’s use of their time. This isn’t about working more quickly, though. It’s more about how much time a sales rep is spending on high-impact activities such as preparing for meetings and providing software demonstrations as opposed to low-impact activities like administrative tasks.
- Sales effectiveness: This is all about a sales rep’s ability to drive revenue. An effective sales rep will be able to use the resources that are available to them—such as content, knowledge, tools, and training—to them to win new customers.
Sales productivity can be simplified by looking at it as the number of deals that a sales rep closes per the hours that they put in, though this is not always the most effective way to look at it is dependent on the product, service, or sales pipeline.