- Metric definitions powered by MetricHQ -
MetricHQ has reached a big milestone! As of this week, our 200th metric was added to MetricHQ. That means that 200 metric definitions exist in our open, free, and trusted library of metric definitions written for and by the metrics and KPIs community.
MetricHQ is more than a library of definitions, it’s a community where you can read a metric, request a metric, or contribute a metric. And once you sign up for a PowerMetrics account, you can instantly add a metric directly from the MetricHQ library, and start monitoring it. Yes, it’s that easy.
Let’s look back at 10 of our most popular metrics on MetricHQ!
10. Return on Marketing Investment
Return on Marketing Investment, or ROMI, takes the number 10 spot. ROMI measures how much revenue a marketing campaign generates compared to the cost of running the campaign. This KPI is an easy way to understand if the time and money spent developing and executing your marketing campaign is providing profitable returns.
9. Customer Acquisition Cost (CAC)
In at number 9 is Customer Acquisition Cost, also known as Cost Per Acquisition, and defined as the cost that a business incurs to acquire a new customer. For example, let’s say a SaaS company spent $150,000 on sales, marketing, salaries, trials, and commissions in November resulting in 60 new customers, you’d calculate the CAC like this: $150,000/60=$2,500.
8. Ad Clicks
Also known as Clicks, ad clicks is a marketing metric that tallies the number of times that users have clicked on a digital ad like text, banners, or buttons. This is a quick way to measure your ad performance. If you have an ad with low clicks, you can quickly make adjustments so you get the most return on ad spend.
7. Net Revenue Retention Rate (NRR)
Net Revenue Retention Rate, or Net Dollar Retention, is one of the most important SaaS metrics. It shows the percentage of recurring revenue retained from existing customers within a defined period, including expansion revenue, downgrades, and cancels. As a benchmark, the median Net Retention Rate across all SaaS companies is ~100%.
6. Revenue per Employee
Revenue per employee is the measure of the total revenue for the last twelve months divided by the current number of full-time equivalent employees. While revenue per employee is applicable across all industries, benchmark data varies with company age, industry, and revenue.
5. Profit per Employee
Different from revenue per employee, profit per employee is a measure of net income for the past twelve months divided by the current number of full-time equivalent employees. Due to different labour needs across sectors, this ratio is often used to draw comparison within the same industry. Keep in mind, this metric differs from revenue per employee because it considers both revenue and expenses.
4. Logo Churn
If you run your business using a subscription model, logo churn may be your archenemy. Logo churn represents the number or percentage of subscribers that discontinue their subscription to the service in a given time period. So why is logo churn an important KPI to keep an eye on? The cost of retaining a customer is almost always less than attracting a new one and for businesses with a recurring revenue model, retaining a customer can be worth hundreds and even thousands of dollars in future revenue.
Drumroll please! The top three most popular metrics found in MetricHQ are...
3. Lead Conversion Rate
Leads convert to revenue. The lead conversion rate is the percentage of visitors who land on your website and are captured as leads in your marketing funnel. The lead conversion rate is a direct indication of your success in attracting the right audience to your website and the effectiveness of your website converting them into leads.
2. Ad Impressions
Different from ad clicks (but a dutiful companion), ad impressions is the total number of times your digital ads display on someone’s screen within the publisher’s network. Ad impressions are a good leading indicator of a successful ad — and the more impressions, the higher the likelihood of ad clicks!
And coming in at the number one spot, our most popular metric is...
1. Payroll to Revenue Ratio
It’s no surprise that businesses turned to productivity metrics this year, putting payroll to revenue ratio at our #1 spot. This metric measures how effective a business is at utilizing labour costs to produce revenue. Payroll to revenue ratio should be tracked over time to understand trends in workforce productivity, like the impact of training or staffing changes.
These are only ten metrics out of 200+ that you can check out and add to your PowerMetrics account. MetricHQ adds new definitions regularly, so be sure to keep checking back for new metrics. And if you don’t see a definition for a metric, let us know by requesting or contributing a metric to help us grow the MetricHQ community!
Originally published November 26, 2020, updated Nov, 26 2020