Salesforce Metrics
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) Renewal Rate is a customer retention indicator. It shows the MRR renewal rate for existing customers and includes expansion MRR as well as downgrades and cancels.
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.
Net Monthly Recurring Revenue (MRR) Churn Rate is the percentage change in MRR due to expansions, cancellations and downgrades. A negative Net MRR Churn Rate occurs when expansions exceed downgrades and cancellations and is a strong positive…