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 is the purpose of a sales forecast?
Answer: To predict expected revenue over a future period, enabling resource allocation, inventory planning, and business decision-making
Accurate sales forecasts allow businesses to plan staffing, inventory, marketing spend, and cash flow with confidence.
What does 'activity-based selling' mean in terms of performance management?
Answer: Managing and tracking the specific sales activities (calls, emails, meetings, demos) that are proven to drive results, rather than focusing only on outcomes
Activity-based management recognizes that reps can control their behaviors (calls, meetings) even when they cannot control outcomes like deal timing.
What is 'pipeline coverage ratio' and what does a ratio of 3:1 mean?
Answer: The total pipeline value is three times the quota target, indicating sufficient opportunities to cover the target even with losses
A 3:1 coverage ratio means the pipeline holds three times the quota value, providing a buffer that accounts for expected losses throughout the sales process.
Why is 'ramp time' an important metric for sales managers evaluating new hires?
Answer: It tracks how long it takes a new salesperson to reach full productivity, helping set realistic expectations and ROI timelines for hiring
Ramp time determines when a new hire becomes revenue-positive, directly affecting when the ROI of hiring is realized and how quickly team gaps are filled.
What is 'cost of sales' as a performance metric?
Answer: The total expenses associated with generating revenue, including salesperson compensation, tools, travel, and overhead
Cost of sales measures the efficiency of the sales operation — a lower ratio of sales cost to revenue indicates a more efficient sales engine.
A salesperson consistently meets activity quotas but misses revenue targets. What does this most likely indicate?
Answer: There may be a skills gap in qualifying prospects, presenting value, or closing — high activity without results points to a quality or skills issue, not just effort
When activity is high but results are low, the problem is usually effectiveness rather than effort — requiring skills coaching, better qualification, or process improvement.