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16. Cost per Lead = Knowing your cost per lead is important because it helps set your sales goals and advertising budget. Cost per Lead = Total Ad Spend / Number of New Orders

17. Capacity Utilisation Rate (CUR) = Is a metric that is considered when there is a need to measure the rate at which potential output levels are being met or used. Displayed as a percentage, capacity utilization levels give insight into the overall slack that is in the economy or a firm at a given point in time. Capacity Utilisation Rate (CUR) = (Actual Output - Potential Output)/Potential Output X 100

18. Project Schedule Variance (PSV) = Schedule Variance and Cost Variance give you important information about the project’s progress, and you must keep watching them regularly. If the Schedule Variance is positive, you are ahead of schedule.If the Schedule Variance is negative, you are behind schedule. Project Schedule Variance = Earned Value – Planned Value
   
19. Project Cost Variance (PCV) = Schedule Variance and Cost Variance give you important information about the project’s progress, and you must keep watching them regularly. If the Cost Variance is positive, you are under budget.If the Cost Variance is negative, you are over budget. Cost Variance = Earned Value – Actual Cost

20. First Contact Resolution (FCR) =  FCR performance is usually defined as the percentage of clients who were able to achieve resolution in one call. This a common metric used in the services/Call centre industry

If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at shubhanjan.saha@gmail.com

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11. CAPEX to Sales Ratio = CAPEX to Sales Ratio measures the level of investments a company is making into its future. It compares the capital expenditure (CAPEX) to sales in a given period. CAPEX to Sales Ratio = (CAPEX in period t / Net Sales in period t) x 100

12. Net Promoter Score (NPS) = The Net Promoter Score, is based on the fundamental perspective that every company’s customers can be divided into three categories: Promoters, Passives, and Detractors.
By asking one simple question — How likely is it that you would recommend [your company] to a friend or colleague? — you can track these groups and get a clear measure of your company’s performance through your customers’ eyes. Customers respond on a 0-to-10 point rating scale and are categorized as follows:
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.
To calculate your company’s NPS, take the percentage of customers who are Promoters and subtract the percentage who are Detractors.

13. Customer Retention Rate = Customer retention rate is the number of customers you manage to keep with respect to the number you had at the start of your period. This does not count new customers.CRR = ((E-N)/S)*100  where
1. Number of customer at the end of a period – E
2. Number of new customers acquired during that period – N
3. Number of customers at the start of that period – S
14. Customer Profitability Score = is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period

15. Customer Lifetime Value = is a prediction of the net profit attributed to the entire future relationship with a customer. Customer Lifetime Value = (Average Value of a Sale) X (Number of Repeat Transactions) X (Average Retention Time in Months or Years)

If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at shubhanjan.saha@gmail.com

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6. Return on Investment (ROI) = A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken. Return on investment (%) = (Net profit / Investment) × 100

7. Return on Assets (ROA) = An indicator of how profitable a company is relative to its total assets.It gives an idea as to how efficient management is at using its assets to generate revenue. Return on assets = Net Income / Total Assets

8. Cash Conversion Cycle (CCC) =  Also called Cash Cycle is a metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of time each net input dollar is tied up in the production and sales process before it is converted into cash through sales to customers.CCC = DIO represents days inventory outstanding (in Days) + DSO represents days sales outstanding (in Days) + DPO represents days payable outstanding (in Days)

9. Working Capital Ratio = A measure of both a company's efficiency and its short-term financial health. The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative W/C (working capital). While anything over 2 means that the company is not investing excess assets. Most believe that a ratio between 1.2 and 2.0 is sufficient.

10. Operating Expense Ratio (OER) = A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. A measure of what it costs to operate a piece of property compared to the income that the property brings in. Operating Expense Ratio (OER) = Operating Expense / Net Sales

If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at shubhanjan.saha@gmail.com

Sales Effectiveness,P&L Metrics List - 1

1. Net Profit = To calculate net profit for a venture (such as a company, division, or project), subtract all costs, including a fair share of total corporate overheads, from the gross revenues or turnover. = Sales revenue ($) - Total costs ($)

2. Net Profit Margin = The net profit margin formula looks at how much of a company's revenues are kept as net income. The net profit margin is generally expressed as a percentage. Both net income and revenues can be found on a company's income statement. (Total Revenue – Total Expenses)/Total Revenue = Net Profit/Total Revenue

3. Gross Profit Margin = Gross profit margin is a profitability ratio that measures how much of every dollar of revenues is left over after paying cost of goods sold (COGS). Gross profit margin is calculated by subtracting cost of goods sold (COGS) from total revenue and dividing that number by total revenue. Gross profit margin = (Revenue - cost of goods sold (COGS))/Revenue

4. Operating Profit Margin = The operating profit margin gives the business owner a lot of important information about the firm's profitability, particularly with regard to cost control. It shows how much cash is thrown off after most of the expenses are met. A high operating profit margin means that the company has good cost control and/or that sales are increasing faster than costs, Operating Profit Margin = Operating Income/Sales Revenue    

5. Revenue Growth Rate = Revenue growth illustrates sales increases/decreases over time. It is used to measure how fast Sales are expanding. More valuable than a snapshot of revenue, revenue growth helps analysts identify trends in order to gauge revenue growth over time.Revenue Growth = (Revenue this year / Revenue last year) - 1

If you want some perspective on how you or your company needs to enhance their Sales/Client Management Capabilities, please email me at shubhanjan.saha@gmail.com