Metrics with Benchmarks Metrics – Page 3

Customer Acquisition Cost (CAC) Ratio is a sales and marketing efficiency metric that measures the return on investment from customer acquisition efforts. It calculates how many dollars of new subscription revenue (adjusted for gross margin) a company generates for each dollar spent on sales and marketing. Unlike simple revenue multiples, CAC Ratio accounts for the actual profit economics of delivering the service by incorporating gross margin, providing a more accurate picture of unit economics and capital efficiency.

Customer Retention Rate is the percentage of existing customers a business keeps from one period to the next, excluding newly acquired customers.

DAU/MAU Ratio (Daily Active Users to Monthly Active Users ratio) measures how active monthly users are on a daily basis. In other words, this engagement metric measures the number of days in each month that users performed an activity that qualifies them as active users. A higher DAU/MAU Ratio generally indicates high stickiness, meaning users consistently return to the app.

Days Sales of Inventory (DSI) is the average number of days a company takes to convert its inventory into sales. It measures how long stock sits before it sells, making it a key indicator of operational efficiency, liquidity, and working capital management.

Defect Rate is the percentage of finished units that fail to meet quality standards. It measures how many units are nonconforming at inspection, during production, or after delivery when a customer identifies a defect. Lower is better because it reflects stable processes, fewer escalations, and less rework.

Earnings Before Interest and Taxes (EBIT) is a measure of a company's core operating profit, calculated before the effects of interest expenses and income taxes. EBIT isolates operational performance, independent of capital structure or tax jurisdiction.

EBITDA is a measure of a company's core operational profitability. It strips out interest, taxes, depreciation, and amortization to show how much a business earns from its operations alone, independent of financing decisions, tax treatment, and non-cash accounting charges.

EBITDA Margin is a financial ratio that measures a company's earnings before deducting non-operating expenses as a percentage of revenue. The calculation excludes accounting expenses such as interest, taxes, depreciation, and amortization to give an overall view of operating profitability and cash flow generation capability.

Email Bounce Rate is the percentage of sent emails that were not delivered to recipients. It is calculated by dividing the number of bounced emails by the total number of emails sent. Tracking this metric helps assess list health and delivery infrastructure. A high bounce rate can damage sender reputation and reduce campaign reach.

Email Click Rate is the number of unique recipients who clicked on any link in your email, represented as a percentage of successfully delivered emails. This metric is a good indicator of how click-worthy your subject lines are, and can also be used to gauge email deliverability.

Email Hard Bounce Rate is the percentage of sent emails that fail to deliver due to permanent, irreversible causes, such as invalid addresses, closed accounts, or inactive domains.

Email Open Rate is the percentage of all delivered emails that are opened by recipients. A high Email Open Rate indicates that your email has captured the interest of your recipients and ensures that your message is seen by your target audience.