Sales ROI
Category: Strategic
Measures the return generated for every rupee invested in sales activities.
What it Measures ?
How much we earn for every rupee spent in sales.
Relevant StakeHolders
CFOs, Sales Directors, Investors
Why it Matters ?
Measures how effectively sales investments convert into revenue.
In-depth Use Case / Real-world Example
If a machinery manufacturer invests ₹1 crore in sales and earns ₹3 crores in new revenue, the Sales ROI is (3−1)/1 = 2 or 200%. This KPI helps assess how effective the sales team is in turning investment into revenue. Higher ROI means better use of sales resources.
Sample Formula
Sales Revenue / Sales Expenses