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.

Referrals

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

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.

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Revenue

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.

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SaaS Magic Number

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.

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SaaS Quick Ratio

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.

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Sales Cycle Length

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.

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Sales Qualified Leads

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.

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Spend Lift

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

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Subscriber Growth Rate

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.

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Subscribers

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, the use of software-as-a-service (SaaS), or even access to seasonal theatre performance.

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Tickets

Customer Issues, tickets, or incidents, refers to the capture 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. Generally we think of user generated issues first, but increasingly with the use of software and connected devices, these incident reports are being generated automatically.

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Transaction Recency

Transaction Recency measures the duration of time since a customer’s last purchase, indicating how recently repeat customers made previous purchases. It is a great way of measuring your business’s ability to bring back customers quickly and may vary based on industry and business model.

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