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.

Customers

One of the most fundamental metrics, Customers is the total count of paying patrons of your business. Without paying customers there is no growth and no value in your business. To accurately assess your customer base, it's important to track new and returning customers as they play a different role in your business. New Customers refer to users who just signed up or made their first purchase with your company while Returning Customers are those who have already made a purchase in the past.

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DAU/MAU Ratio

DAU/MAU Ratio (Daily Active Users to Monthly Active Users ratio) measures how active monthly users are on a daily basis. In other words, this engagement metric measures the number of days in each month that users performed an activity that qualifies them as active users. A higher DAU/MAU Ratio generally indicates high stickiness, meaning users consistently return to the app.

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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 an agent takes 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.

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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Inventory Quantity

Inventory Quantity is the currently available stock for each product variant a retail location or e-commerce store has available. Keeping track of inventory quantity is important to ensure that there are enough goods in stock to meet customer demand. Businesses should identify the optimal stock level for each product variant and adjust accordingly. If inventory levels are too low, customers may not be able to purchase a desired item or find an alternative solution elsewhere. On the other hand, if levels are too high, it can lead to an overstocking of products and wasted resources.

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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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