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.

EBITDA Margin

EBITDA Margin is a financial ratio that measures a company's earnings before deducting non-operating expenses as a percentage of revenue. The calculation excludes accounting expenses such as interest, taxes, depreciation, and amortization to give an overall view of profitability.

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Expansion MRR Growth Rate

Expansion Monthly Recurring Revenue (MRR) Growth Rate is the velocity at which additional revenue from existing customers is being added to the business, expressed as a percentage of total MRR. Expansion MRR Growth Rate is often cited as a monthly rate, but it's also possible to express it using an annual timeframe, for example, "Our Expansion MRR Growth Rate for April was 5%" or "Our Expansion MRR Growth Rate was 80% last year".

First Response Time

First Response Time (FRT) is the average amount of time taken for an agent to provide an initial response to a customer inquiry or support ticket. The speed at which you acknowledge a customer's question is a reflection of your commitment to customer satisfaction and the maturity and efficiency of your call centre.

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Goal Completions

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 in particular Goal Conversion Rate are vital in measuring the effectiveness of your website and business objectives.

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Gross MRR Churn Rate

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 as Gross ARR Churn Rate.

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Gross Margin

Gross Margin is a profitability ratio that measures Gross Profit as a percentage of total revenue. Typically, it is calculated as Gross Profit divided by revenue.

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Gross Profit

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.

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Gross Revenue Retention Rate

Gross Revenue Retention (GRR) Rate is the percentage of recurring revenue retained from existing customers in a defined time period, including downgrades, and cancels. It does not include any expansion revenue. GRR is also commonly referred to as Gross Renewal Rate.

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Lead to Win Rate

Lead To Win Rate is the percentage of Leads who entered the sales funnel and are now "Closed Won" Customers. This is one of the most ubiquitous sales conversion metrics and is a strong indication of product market fit, pricing, and sales execution. It's also a key metric in aligning your marketing, sales, and product teams.

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Leads

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 categorized as either being inbound (considered warm) or outbound (considered cold).

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Lifetime Value to Cost of Acquisition Ratio

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.

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MRR Growth Rate

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; for example, "we are targeting 10% MRR Growth for April", or "our MRR Growth Rate was 100% last year".

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