Sales Metrics

The most important sales metrics, KPIs, and ratios to track.

Metric
Description

Call Volume refers to the number of incoming and/or outgoing calls handled in a given time period. It can be used to measure the number of incoming calls to a Customer Support organization, outgoing calls from a Sales team, calls queued to an…

Won Opportunities is the count of sales opportunities that are closed won. It is a measure of success of the Sales and Marketing teams.

Referrals are among the most valuable lead generation flows, as it builds upon the trust of the referring party. Referrals often happen via word-of-mouth, but can also be generated via influencer marketing, review sites, or software companies can…

Number of Demos is the count of total demonstrations of a product a company has given to prospective customers.

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…

A Lead is an individual who has shown an interest in your product or service. Leads do not have to be qualified - meaning there is no consideration yet of need, timeline, budget, or decision making ability. The acquisition of leads is generally…

A Goal represents a completed activity that you have defined as important to the success of your website or business. Goals can capture a number of completed actions, such as completing a form, downloading a brochure, or making a purchase. Goals and…

An often overlooked metric by early stage entrepreneurs and investors is the SaaS Quick Ratio, used to measure the growth efficiency of a company. Another way to think of it is as a health measure of company growth.

Gross Profit is the amount left over from total revenues after Cost of Goods Sold (COGS) has been deducted. COGS will typically include the cost of making and selling the product or the cost of services provided by the company.

The Lifetime Value to Cost of Acquisition (LTV/CAC) Ratio tells you if the theoretical lifetime revenue you get from a customer is higher or lower than the sales and marketing costs needed to acquire that customer.

Gross Margin is the difference between Revenue and Cost Of Goods Sold (COGS). Typically, it is calculated as the selling price of an item, minus the cost of material and labour used to produce the item.

Gross Monthly Recurring Revenue Churn Rate (Gross MRR Churn Rate) is the percentage of recurring revenue lost due to both cancellation and downgrades. Note that it is common to express this metric as a monthly rate, though it can also be expressed…

Revenue is the income generated through a business' primary operations, such as the sale of products or services, or proceeds from rent or interest, less any discounts or returns. Unlike related metrics, such as Net Revenue, Gross Margin, or…

A Marketing Qualified Lead (MQL) is a universal metric used by marketing teams to measure the quality of leads they generate and pass to sales. Most marketing teams have targets associated with MQLs that include number of MQLs and acceptance rate,…

The Cost Of Goods Sold (COGS) is the measure of costs incurred by a company to manufacture or resell a product. Costs typically include raw material and direct labour, but this varies from business to business, depending on the products or services…

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…

The Subscribers metric counts the number of paid or non-paid users who have periodic access to a product or service. Most often, this metric refers to a subscription-based business model, for example, newspapers, magazines, phone, internet service,…

An opportunity is a qualified lead that indicates the potential for a deal. Regardless of a business’s unique qualification criteria, an opportunity represents a higher probability of closing.

Customer Issues, or tickets or incidents, refers to the documentation of user or system initiated requests. These might include help requests, bug or error reports, events or alarms, feature requests, complaints or any type of other feedback.…

Contacts are individual people that the business has a relationship with, often associated with an account. In many Content Management Systems (CRMs), such as Salesforce, Contacts are associated with qualified opportunities, existing customers, or…

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)…

Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which MRR is being added to the business, expressed as a percentage. MRR Growth Rate is often cited as a monthly rate, but it's also possible to express it using an annual timeframe…

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. Executives and investors use this metric as an…

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…

Monthly Recurring Revenue (MRR) is the sum of all subscription revenue expressed as a monthly value. For most companies, MRR is the sum of all new business subscriptions and upgrades (sometimes called expansion), minus downgrades (or contractions)…

The Customer Lifetime Value (LTV) metric indicates the total revenue a business can reasonably expect from a single customer account. It considers a customer's revenue value and compares that number to the company's predicted customer…

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase.

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