Metrics Glossary

How to Calculate Sales Activity Per Opportunity

GREGORY KESHIAN | Sep 18, 2018

Sales activity per opportunity measures the average number of activities a sales rep needs to make in order to open one opportunity or deal.  To measure sales activity per opportunity, you take your total number of sales activities logged, and divide by the number of opps created.

For example, if a rep created 4,000 activities in a month and opened 16 opportunities, then their activities per opportunity ratio would be 4,000 / 16 = 250 activities per opp.

How to Calculate Calls per Opportunity

GREGORY KESHIAN | Sep 18, 2018

Calls per opportunity measures the average number of phone calls a sales rep needs to make in order to open one opportunity or deal.  To measure calls per opportunity, you take your total number of calls made, and divide by the number of opps created.

For example, if a rep made 2,000 calls in a month and opened 14 opportunities, then their calls per opportunity ratio would be 2,000 / 14 = 143 calls per opp.

How to Calculate Sales Velocity Per Opportunity

GREGORY KESHIAN | Sep 18, 2018

Sales velocity measures the expected output you would get from a sales rep or team in a given period of time.  Sales velocity on a per opportunity basis measures the expected output from a single opportunity or deal in a given period of time.  To calculate sales velocity per opportunity, you multiply your ASP and close rate, and then divide that by your sales cycle, measured over the same duration that you are measuring.

How to Calculate Cohort-Based Sales Cycle

GREGORY KESHIAN | Sep 18, 2018

Cohort-based sales cycle measures the average amount of time between when an opportunity or deal is created, and when it is closed won, tracked by the created date of the opportunity.  To calculate cohort-based sales cycle, you first isolate all the deals that you won that were created in a particular period. Then, for each one, you track the number of days between when it was created and when it was closed.  You sum up all those days from all the opps, and then divide by the number of opps won.

How to Calculate Sales Cycle

GREGORY KESHIAN | Sep 18, 2018

Sales cycle measures the average amount of time between when an opportunity or deal is created, and when it is closed won.  To calculate sales cycle, you first isolate all the deals that you won in a period. Then, for each one, you track the number of days between when it was created and when it was closed.  You sum up all those days from all the opps, and then divide by the number of opps won.

How to Calculate Cohort-Based Lead Conversion Rate

GREGORY KESHIAN | Sep 18, 2018

Cohort-based lead conversion rate measures the percentage of your leads that end up converting to opportunities, of the leads created in a certain period.  To calculate lead conversion rate, you take the number of leads created in a period, and divide that into the number of those same leads that were converted to opps.

For example, if you had 100 leads that were created in March, and of those 100 leads, 12 converted to opportunities, then your cohort-based lead conversion rate would be 12 / 100 = 12%.  

How to Calculate Lead Conversion Rate

GREGORY KESHIAN | Sep 18, 2018

Lead conversion rate measures the percentage of your leads that end up converting to opportunities.  To calculate lead conversion rate, you take the number of leads converted to opportunities in a period, and divide that by the number of leads created in that period.

For example, if you had 100 leads that were created in March, and you had 18 leads converted to opportunities in March, then your lead conversion rate would be 18 / 100 = 18%.

How to Calculate Opportunity Push Rate

GREGORY KESHIAN | Sep 18, 2018

Opportunity push rate measures the percentage of your opportunities that are set to close in a period that end up pushing out to the next period.  To calculate push rate, you first measure the number of opportunities that are open, and set to close in a timeframe as of the beginning of that timeframe.  Then, once the timeframe is over, you track how many of those are still open but set to close in a later period.