STATSFORSTARTUPS
Average basket size refers to the number of items getting sold in a single purchase. This is an excellent support metric for AOV as it can provide con...
The average number of transactions over a specified period of time.
Average revenue per account (ARPA) is a profitability measure that assesses a company’s revenue per customer account. ARPA is generally measured on a ...
Average revenue per user measures how much revenue you’re generating for each active customer.
Average Selling Price (ASP) is the average price a given product is sold for.
Fully-loaded S&M spend to acquire $1 of new ARR across all customers. Want the CAC to be as low as possible.In order to be a successful business tha...
Contribution margin is a business’ sales revenue less its variable costs. The resulting contribution dollars can be used to cover fixed costs (such as...
Ratio of contribution margin to sales revenue The closer a contribution margin percent, or ratio, is to 100%, the better. The higher the ratio, the ...
The cost to acquire one net new dollar of ARR.
Conversion Rate is a measure of the amount of visitors who have completed a goal on a website. The higher the conversion rate, the more successful the...
A Cost per Lead is an important metric that measures your marketing and sales campaigns' efficiency when generating new leads for your sales team. CPL...
Cost per Mille or CPM is what you pay for 1,000 impressions. This was a popular way of determining ad costs for print ads, and it is still sometimes t...
The amount of money a company has to spend in a given period to retain an existing customer. Retention costs include customer support, billing, promot...
A ratio showing how often people who see your ad or free product listing end up clicking it. Clickthrough rate (CTR) can be used to gauge how well you...
Your average deal size is the average size of your deals. It is the total revenue achieved in a set period (e.g., a month, a quarter, a year) divided ...
The amount it costs to get $1 annual contract value (ACV). Best efficiency is 1:1. A GEI value of under 1 is viewed as optimal revenue acquisition,...
Gross Sales Efficiency simply looks at Gross New ARR (which does not include churn) A ratio between 0-0.5 usually indicates the company doesn't ha...
The Lead Conversion Rate is the percentage of visitors who come to your website and are captured as leads. This is one of the most important top-of-th...
How many potential customers are considered very likely to become actual customers. The Lead Velocity Rate is the growth percentage of qualified leads...
The SaaS Magic Number is a widely used formula to measure sales efficiency. It measures the output of a year's worth of revenue growth for every dolla...
A Marketing Qualified Lead is one whom has been deemed more likely to become a customer compared to other leads. This qualification is based on which ...
Net yearly recurring revenue refers to the yearly value of newly acquired accounts to your sales system and yearly added value to current accounts, mi...
NPS is a metric used in customer experience programs. NPS measures the loyalty of customers to a company. NPS scores are measured with a single questi...
Net Sales Efficiency measures Net New ARR, which is reduced by Churn A ratio between 0-0.5 usually indicates the company doesn't have a sustainabl...
Online Share of Voice (OSOV) measures the relative share of online mentions of a brand (company or product) - especially in Social Media forums - rela...
Win rate is the percentage of leads that convert to sales. This measures how many opportunities you won, divided by the total number of opportunities ...
What percent of reps hit quota? This generally sits between 70-100% (if it’s >100%, you need higher quotas). This is the anchor number for knowing whe...
This is the percentage of people who almost complete a purchase, only to leave. They put something in their cart and maybe even make it all the way to...
Implied compounded monthly revenue growth rate between two disparate months
The volume of referred purchases as a percentage of your total purchase. The global average referral rate is about 2.3%. If you already have product...
Return On Advertising Spend, (ROAS), is a marketing metric that measures the efficacy of a digital advertising campaign. ROAS helps online businesses ...
Capital efficiency is the ratio of how much a company is spending on growing revenue and how much they're getting in return. For example, if a company...
Revenue per click is simply the average revenue for each individual click on all of your pay-per-click keywords and ads.
The rolling retention rate formula includes customers that return on a specified day or any day after. Basically, customers that perform a certain act...
Sales Accepted Leads (SALs) are marketing qualified leads (MQLs) that have met certain agreed-upon criteria and are passed along to the sales team whe...
The attach rate, also commonly referred to as an attach ratio, is the number of add-on products/units sold in relation to a primary product/unit. ...
Session length is typically used in terms of app usage. It is the amount of time from when a user lauches teh app until they stop using or leave the a...
Sales pipeline coverage (SPC) is how full your pipeline is relative to your quota for a given period. This valuable metric provides you with a good ov...
A Sales Qualified Lead involves a prospective customer - who has been qualified - being deemed ready for the sales team of your company to get in cont...
Number of units sold in a period, divided by number of items at the beginning of the period. What is a good sale through rate? It varies on a case b...
Use this formula if you have a tiered product or service in which users can upgrade to a higher level. It helps to determine how pleased users are and...
