Renewal rate tracks churn and retention down to the month of invoicing. Rather than track churn and renewals against your total customer count, you track renewals based on each cohort of monthly invoices.

Requester Wait Time (Calendar) is the total combined time a ticket was in the new, open, and on-hold statuses. This number is measured only after a ticket's status changes to pending, solved, or closed. Unlike Full Resolution Time, Requester Wait Time does not take into account pending time – the status set when a ticket is waiting for an answer from the requester.

The Return On Marketing Investment (ROMI) metric measures how much revenue a marketing campaign is generating compared to the cost of running that campaign. Effective marketers are driven to connect their time, energy and advertising spend with results that contribute to company growth. This KPI answers the question, “are we recouping the time and money we spent developing and executing our marketing campaigns?”

Return on Ad Spend (ROAS) is a marketing metric that quantifies the total revenue generated for every dollar spent on advertising. In other words, ROAS measures the effectiveness of your advertising efforts by comparing total ad spend on campaigns to the revenue from those campaigns.

Return on Incremental Invested Capital is an efficiency metric used to measure the change in earnings as a percentage of incremental investments.

Return on Invested Capital is a profitability metric used to measure return on capital investments. It is calculated by dividing Net Operating Profit After Tax (NOPAT) by invested capital.

Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.

Revenue per Employee is a measure of the total Revenue for the last twelve months (LTM) divided by the current number of Full-Time Equivalent employees. Also known as Revenue to Employee Ratio, this ratio is among the most universally applicable and is often used to compare companies within the same industry.

The SaaS Magic Number is a ratio showing yearly recurring revenue growth gained for every sales and marketing dollar spent. It indicates the level of operational efficiency of a company, as well as the sustainability of sales and marketing expenditure.

SaaS Quick Ratio is used to measure the growth efficiency of a company, but is often overlooked by early stage entrepreneurs and investors. Think of SaaS Quick Ratio as a health measure of company growth.

Sales Cycle Length is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.

A Sales Qualified Lead (SQL) is a prospect that meets certain conditions as defined by the sales process. SQLs are middle of the funnel, having been qualified first by marketing or a lead setting team, and are now ready to be moved to the next stage in the sales process.