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.

Inventory Quantity

Inventory Quantity is the currently available stock for each product variant a retail location or e-commerce store has available. Keeping track of inventory quantity is important to ensure that there are enough goods in stock to meet customer demand. Businesses should identify the optimal stock level for each product variant and adjust accordingly. If inventory levels are too low, customers may not be able to purchase a desired item or find an alternative solution elsewhere. On the other hand, if levels are too high, it can lead to an overstocking of products and wasted resources.

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Leads

A Lead is an individual who has shown an interest in your product or service. Leads do not have to be qualified, meaning there is no consideration yet of need, timeline, budget, or decision-making ability. The acquisition of Leads is generally categorized as either being inbound (considered warm) or outbound (considered cold).

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Lifetime Value to Cost of Acquisition Ratio

The Lifetime Value to Cost of Acquisition (LTV/CAC) Ratio tells you if the theoretical lifetime revenue you get from a customer is higher or lower than the sales and marketing costs needed to acquire that customer.

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MRR Growth Rate

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; for example, "we are targeting 10% MRR Growth for April", or "our MRR Growth Rate was 100% last year".

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Marketing Qualified Leads

A Marketing Qualified Lead (MQL) represents a prospect who has demonstrated sufficient engagement and intent to warrant sales attention, based on criteria established collaboratively between marketing and sales teams. Unlike raw leads or contacts, MQLs have crossed specific behavioural or demographic thresholds that indicate genuine interest in your solution. This metric serves as marketing's primary deliverable to sales and forms the backbone of most demand generation strategies, with teams typically setting targets for both MQL volume and quality measures such as MQL-to-SQL conversion rates.

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Monthly Recurring Revenue

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) and cancelled subscriptions. Though not a Generally Accepted Accounting Principle (GAAP) value, it's the Revenue equivalent used by every SaaS company. MRR is used interchangeably with ARR.

Net MRR Churn Rate

Net Monthly Recurring Revenue (MRR) Churn Rate is the percentage change in MRR from existing customers due to expansions, cancellations, and downgrades. A negative Net MRR Churn Rate occurs when expansions exceed downgrades and cancellations and is a strong positive indicator of company health. This metric is typically expressed as a monthly rate, although it can also be calculated as an annual rate: Net Annual Recurring Revenue (ARR) Churn Rate.

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Net Revenue Retention Rate

Net Revenue Retention (NRR) Rate, also known as Net Dollar Retention (NDR), is the percentage of recurring revenue retained from existing customers in a defined time period, including expansion revenue, downgrades, and cancels. This churn metric gives a comprehensive view of positive as well as negative changes with respect to customer retention.

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Net Sales

Net Sales consists of gross sales less any discounting, products returns, or damaged products. It is an accurate measure of the amount of money brought in by a business.

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Number of Demos

Number of Demos is the count of total demonstrations of a product a company has given to prospective customers.

Onboarding Calls

Onboarding Calls is the number of phone calls made by the sales team to welcome new customers into the product. It is a good leading indicator of Engagement and Customer Lifetime Value.

Open Opportunities (Revenue)

The Open Opportunities (Revenue) metric measures the total revenue amount of all open or active opportunities. Often referred to as “pipeline”, sales teams and sales management use this metric to follow the progress of their sales deals and to make sure they’re on track to close. It also acts as a forecasting tool to better predict future closed won revenue.

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