RevOps metrics should help you decide what to change in sales, marketing and customer operations. Before building a dashboard, define the data source, reporting period, exclusions and person responsible for each number.<\/p>\n
An opportunity, an order, an invoice and a payment are different events. Pipeline value is not recognised revenue. Reconcile financial measures with finance.<\/p>\n
Win rate = won opportunities \/ (won + lost opportunities) \u00d7 100%.<\/strong> If 80 opportunities close in a quarter and 20 are won, the win rate is 25%. Open opportunities are excluded.<\/p>\n Define when an enquiry becomes an opportunity and how a customer making no decision is classified. A team counting all enquiries cannot be compared directly with one counting only submitted proposals. Segment results by customer type and source, and show the sample size beside the percentage.<\/p>\n A low rate does not by itself establish poor selling. Examine fit, pricing and recorded loss reasons before choosing an intervention.<\/p>\n Pipeline velocity = number of opportunities \u00d7 win rate \u00d7 average deal value \/ sales cycle in days.<\/strong><\/p>\n With 50 opportunities, a 25% win rate, a \u20ac12,000 average deal and a 60-day cycle, the calculation is 50 \u00d7 0.25 \u00d7 \u20ac12,000 \/ 60 = \u20ac2,500 per day<\/strong>. Reducing the cycle to 45 days while holding the other assumptions constant gives about \u20ac3,333 per day.<\/p>\n This is a model of sales throughput, not a cash-flow forecast or a promise of daily revenue. Use historical win rates and cycle lengths from a comparable segment. Specify whether the cycle starts at first contact or opportunity acceptance.<\/p>\n CAC = sales and marketing costs allocated to acquisition \/ new customers acquired.<\/strong><\/p>\n Suppose quarterly marketing costs are \u20ac30,000, sales employment costs \u20ac60,000 and tools \u20ac5,000. Total acquisition spend is \u20ac95,000. With 19 new customers, CAC is \u20ac5,000<\/strong>.<\/p>\n This example assumes all those costs support acquisition. If staff also manage existing accounts, document the allocation method. Include employer costs and commissions. With a long sales cycle, this month’s spending may not produce this month’s new customers; use a suitable longer period and explain the timing limitation.<\/p>\n Lifetime value can describe revenue or margin. Label the method. To evaluate acquisition economics, compare acquisition cost with the margin a customer is expected to contribute.<\/p>\n Simplified margin-based LTV = monthly customer revenue \u00d7 gross margin percentage \u00d7 estimated lifetime in months.<\/strong><\/p>\n A customer paying \u20ac500 per month at a 70% gross margin over an estimated 36 months has an LTV of \u20ac500 \u00d7 0.70 \u00d7 36 = \u20ac12,600<\/strong>. With a \u20ac5,000 CAC, LTV:CAC is 2.52:1<\/strong>. A revenue-only calculation would produce \u20ac18,000 and 3.6:1, giving a different impression.<\/p>\n This is an illustration, not a universal target. It excludes discounting and changes in revenue. A young business may have little evidence for the lifetime assumption. Show alternative lifetimes and track realised margin by customer cohort.<\/p>\n Pipeline coverage = open pipeline expected to close in the period \/ remaining sales target for that period.<\/strong> Use the same value basis, such as annual contract value, for both.<\/p>\n A \u20ac600,000 pipeline against a remaining \u20ac200,000 target gives coverage of 3. It does not guarantee attainment. Check close dates, historical win rates and the concentration of value in a few large opportunities.<\/p>\n Customer churn = customers lost during the period \/ customers at the start \u00d7 100%.<\/strong> State whether the period is a month or a year and define when a customer is considered lost.<\/p>\n NRR = (starting MRR + expansion \u2212 contraction \u2212 churned MRR) \/ starting MRR \u00d7 100%.<\/strong> MRR is monthly recurring revenue. Include only changes from customers present at the start; exclude new customers.<\/p>\n Starting MRR of \u20ac100,000, expansion of \u20ac15,000, contraction of \u20ac5,000 and churn of \u20ac8,000 produce 102% NRR<\/strong>. Recurring revenue from that customer group increased by 2%. NRR alone does not establish satisfaction: a price increase can offset lost customers.<\/p>\nPipeline velocity: an estimate of sales throughput<\/h2>\n
CAC: the cost of acquiring a customer<\/h2>\n
LTV:CAC: distinguish revenue from margin<\/h2>\n
Pipeline coverage: compare like-for-like values<\/h2>\n
Churn and NRR: keep the starting cohort fixed<\/h2>\n
Write a metric definition before building a dashboard<\/h2>\n