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Measurements Formula for the Sales and Marketing Department



The sales function is the engine that supplies the rest of a company with enough revenue to create profitability and positive cash flow. Since it is so crucial to overall operations and financial viability, its performance should be tracked with several types of ratios and formulas. The measures selected should address not only the sales effectiveness of individual sales staff, but also sales trends by product line, overall market share, and the ability of the company to retain existing customers.

The measurement formulas presented in this post are:


Market Share
Customer Turnover
Browse to Buy
Conversion Ratio
Direct Mail Effectiveness Ratio
Inbound Telemarketing Retention Ratio
Quote to Close Ratio
Sales per Salesperson
Sales Productivity
Sales Effectiveness
Sales Trend Percentage by Product Line
Product Demand Elasticity
Days of Backlog

Here is the formula list:

Sales and Marketing Dept Measurement Formula-1

Sales and marketing Performance Measurement Formula-2

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Engineering Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Production Department


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