Sales metrics & KPIs
The metrics that measure revenue performance: win rate, CAC, LTV, churn, forecast accuracy, and the SaaS efficiency benchmarks behind them.
Annual Contract Value
Annual Contract Value (ACV) is a sales metric that normalizes the value of a single customer contract to a 12-month period, regardless of its total term.
Average deal size
A core sales metric that measures the mean revenue value of closed-won deals over a specific period, such as a quarter or year.
Bookings
Bookings are the total value of all contracts signed by new and existing customers within a specific time period, representing a commitment to future revenue.
Churn rate
The percentage of customers or recurring revenue a business loses over a specific period, typically calculated monthly or annually.
Conversion rate
The percentage of leads or opportunities that advance from one stage of the sales funnel to the next over a specific period.
Customer Acquisition Cost
Customer Acquisition Cost (CAC) is the total sales and marketing expense required to acquire a single new customer within a specific period.
Forecast accuracy
Forecast accuracy measures how closely a sales team's revenue projection for a specific period aligns with the actual revenue closed in that period.
Gross retention
A metric that measures the percentage of recurring revenue retained from existing customers over a period, excluding any expansion revenue from upsells or cross-sells.
Lifetime Value
Lifetime Value (LTV) is a metric that predicts the total net profit a business will earn from a single customer over their entire relationship.
Logo retention
Logo retention is a metric that measures the percentage of customers a business keeps over a specific period, counting each customer as a single unit.
LTV:CAC ratio
A key SaaS metric that measures the relationship between a customer's projected lifetime value and the cost to acquire them.
Magic number
The magic number is a key SaaS metric that measures the efficiency of a company's sales and marketing spend in generating new recurring revenue.
Monthly Recurring Revenue
A key SaaS metric that measures the total predictable, recurring revenue a business can expect to receive each month.
Payback period
The time, usually measured in months, that it takes for a business to recover its customer acquisition cost from a customer's gross margin.
Quota
A quota is a time-bound sales target assigned to a sales representative or team, representing their portion of the company's overall revenue goal.
Quota attainment
Quota attainment is a core sales metric that measures the percentage of a sales target an individual, team, or entire organization achieves within a specific period.
Rule of 40
A key SaaS benchmark stating that a company's revenue growth rate plus its profit margin should exceed 40%.
Win rate
Win rate is the percentage of qualified opportunities that are successfully closed as new business over a specific period.