HOW TO: Measure your sales performance

Sales directly affect profit! As such, tracking and determining if your sales are on tack is an integral part of your business strategy. Below are 6 metrics to measure your sales performance.


These are referred to as revenue or/and turnover. They measure your total income for a certain period of time. Daily, weekly, monthly or yearly sales are commonly recorded.

Number of Customers

More customers = more transactions. Store visitors are not customers - visitors can only become customers when they buy!

Value Per Transaction (VPT)

This is the most effective measure as it calculates how much each customer spends per order. The average sale determines sales per order, not sales per customer as the same customer may have multiple transactions. This is measured by the following calculation: total sale value/ number of transactions.

Unit Per Transaction (UPT)

This is measured by the following calculation: sold quantity/ number of transactions. This important as your aim should be to have more money, rather than just selling more.

Inventory Turnover

This is the ratio of inventory sold over a period of time. High inventory turnover is a good indication as it shows more sales being generated. This is measured by the following calculation: cost of sales/ ending inventory value.

Average Days to Sell the Inventory

This refers to the average days to sell the inventory at hand. This is measured by the following calculation: 365 (days of the year)/ inventory turnover.