An important function related to sales is controlling or keeping track of sales performance over a specified period?

Two common methods of tracking sales performance include:

• Sale Ratios
• Activity Quota

What is a Closing Ratio?

In sales, the closing ratio measures the number of business proposals and presentations by salespersons that are converted into actual sales. It is also a measure of the number of business deals that sales experts close which is used to evaluate how effective the salespersons are. The closing ratio is calculated by measuring the number of deals closed and the business proposals and presentations made. Organizations calculate the closing ratio to determine the number of sales representatives that are performing up to the task. It also measures how well the organization is scaling in comparison to competitors.

What is an Activity Quota?

This refers to a minimum level of sales set by an organization where every salesperson is supposed to meet within a specified period of time.

In other words, it is a method used to measure the sales employees performance.

This is usually in relation to employees selling activities.

The activities may include things such as a number of calls made, the number of new accounts that have been opened, etc.

The activity quota is basically proof that work is being done regardless of whether or not there is an outcome from the product or services being sold.