Opportunity Win Rate is a metric that measures the success rate of a sales team in converting an opportunity into a sale. It is calculated by dividing the total number of won opportunities by the total number of open opportunities and expressing it as a percentage.

Payment acceptance is the percentage of payments that are successful out of those payments that are attempted. In credit card language, this is often called the “authorization rate”. Failed payments are the menace of selling anything online and payment acceptance rates are significantly lower than buying something in-person.

Propensity to Renew is a measure of the likelihood a customer will renew their contract instead of terminating their engagement with a company, most often provided by the customer as part of a survey. It is an indicator of revenue risk and potential logo churn.

The Referrals metric measures the number of potential customers that have been directed to your product through the promotion of an existing customer. Referrals are often generated by word of mouth but can also result from influencer marketing and review sites. Software companies can develop flows that encourage promotion and virality.

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.

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.

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.

Lift in Spend is a loyalty metric that calculates the increased spend per customer or groups of customers across two periods.

Subscriber Growth Rate measures the percentage growth of an application’s account base in a given time period compared to the previous time period. The time period can be a week, a month, a quarter, or a year.