Sales Metrics

Do you know the most important sales metrics, KPIs, and ratios to track? Explore top sales metrics and benchmarks reviewed by industry experts.

Account Balance

Account Balance represents the difference between debits and credits in an account on a company’s general ledger. If debits are larger than credits, the account has a net debit Account Balance. If Credits are larger than debits, the account has a net credit Account Balance.

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Activation Rate

Activation Rate helps companies determine how quickly and effectively their new users are achieving perceived value. It measures the number of new users that have performed a predetermined “key action” within a set period of time, where the key action is assumed or known to deliver initial customer value.

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Ad Cost Per Goal Conversion

Ad Cost per Goal Conversion is the amount of money spent on an ad that leads to a goal conversion. It is used to measure the investment in a single advertisement required to achieve a set goal.

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Annual Contract Value

Annual Contract Value (ACV) is the dollar amount an average customer contract is worth to your company in one year. There tends to be less universal consensus on the definition of ACV compared to some other SaaS metrics, such as Annual Recurring Revenue. For example, some companies include one-time initial charges like setup or training in their ACV calculations, while others don’t.

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Annual Recurring Revenue

Annual Recurring Revenue (ARR) is the sum of all subscription revenue expressed as an annual value. For most companies, ARR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions) and cancelled subscriptions. Though not a Generally Accepted Accounting Principle (GAAP) value, it's the Revenue equivalent used by every SaaS company. ARR is used interchangeably with Monthly Recurring Revenue (MRR).

Average Order Value

Average Order Value (AOV) indicates the average amount of money spent on an order, either over a set period or over the lifetime of an e-commerce store. This is calculated by taking the total revenue and dividing it by the number of orders placed within the determined period.

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Average Purchase Frequency

Average Purchase Frequency counts the average number of transactions per customer per period. This metric is used to better understand customer behavior and purchase patterns.

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Average Revenue Per Account

Average Revenue Per Account (ARPA) is the average revenue generated per account per year or month. It is used as an indication of revenue generation capability and the ability to meet targets.

Average Revenue Per User

Average Revenue Per User (ARPU) is a company's generated revenue that is averaged across all users and reported as a monthly or yearly value. ARPU is a top-level metric, that can easily be normalized and is often cited as a comparative measure between similar companies.

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Average Selling Price

Average Selling Price (ASP) is the average price a given product is sold for. This metric can be applied narrowly to a product or service or, more broadly, to an entire market. It's a common metric, often used to compare businesses or channels and is particularly interesting as a reflection of what consumers will pay for similar products or services.

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Bookings

Bookings is a key sales metric that is calculated by taking the total dollar value, including subscription, implementation, and discounts, that a customer has committed to spend for a product or service within a specified period.

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CAC Payback Period

CAC Payback Period is the time it takes for a company to earn back their customer acquisition costs. The value depends on how high the Customer Acquisition Cost (CAC) is and how much a customer contributes in revenue each month or each year.

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