Sales Performance and Metrics Flashcards
6 cards from real SPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Sales Performance and Metrics flashcards as text
What does 'sales cycle length' measure?
Answer: The average time from initial contact to deal close for a specific product, segment, or rep
Sales cycle length indicates how long it typically takes to convert a prospect, enabling more accurate forecasting and identifying opportunities to accelerate the process.
What is 'sales velocity'?
Answer: A metric combining deal count, average deal value, win rate, and sales cycle length to measure how quickly revenue flows through the pipeline
Sales velocity = (Number of opportunities × Average deal value × Win rate) ÷ Sales cycle length, giving a single number that represents the health of the pipeline.
A salesperson's pipeline shows many opportunities but few closings. What metric should be examined first?
Answer: Conversion rates at each pipeline stage to identify where deals are stalling
Stage-by-stage conversion rates reveal the specific point in the process where deals are lost, allowing targeted coaching and corrective action.
What does 'quota attainment rate' across a sales team reveal?
Answer: The percentage of reps who achieved their individual quota, which reflects both individual performance and the achievability of targets
If fewer than 50-60% of reps hit quota, it may indicate unrealistic targets, insufficient training, or systemic process issues rather than only individual failure.
What is 'churn rate' and why does it matter for sales performance?
Answer: The percentage of customers who stop buying or cancel over a period, which offsets new customer acquisition
High churn erodes the gains from new sales, meaning the team may be running hard just to stay in place — reducing churn is as valuable as adding new revenue.
What is a 'key performance indicator' (KPI) in a sales context?
Answer: A quantifiable metric used to evaluate a salesperson's or team's progress toward defined sales goals
KPIs provide objective, measurable data points that track progress toward goals and identify areas requiring improvement or coaching.