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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.
Opportunity Win Rate
Opportunity Win Rate measures your sales team's effectiveness at converting qualified opportunities into closed-won deals. It's calculated by dividing the total number of won opportunities by the total number of opportunities that reached a final decision (won plus lost), expressed as a percentage. This metric reveals how competitive and skilled your sales organisation is at the moment of truth—when prospects are making buying decisions.
Payment Acceptance
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
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.
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.
Revenue
Revenue is the total income generated from a company's primary business operations before deducting any costs or expenses. Often called the "top line" because it appears at the top of the income statement, revenue represents the gross amount earned from core business activities such as product sales, service fees, subscriptions, or licensing agreements.
Revenue Growth Rate
Revenue Growth Rate measures the percentage increase in a company's revenue over a specific time period. This fundamental metric indicates your company's momentum, market position, and overall business health. As one of the most scrutinized metrics by investors, executives and stakeholders, it provides critical insights into the effectiveness of your sales strategies, market expansion efforts, and product development initiatives.
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.
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.
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.
Sales Qualified Leads
A Sales Qualified Lead (SQL) represents a prospect who has progressed beyond initial marketing engagement and demonstrates genuine potential for conversion. Unlike Marketing Qualified Leads (MQLs) that indicate early interest, SQLs have been vetted by sales professionals and meet specific criteria that suggest a higher likelihood of becoming a paying customer. These leads sit strategically in the middle of your sales funnel, having moved past the awareness stage but not yet reached the final purchase decision point.
Spend Lift
Lift in Spend is a loyalty metric that calculates the increased spend per customer or groups of customers across two periods.