Sales Metrics – Page 3

Cost per Activated Lead measures the costs involved in generating one activated lead. An activated lead is a potential customer who demonstrates intention to purchase your product.

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.

Customer Effort Score (CES) is a measure of how easy or difficult it is for customers to interact with your company, whether that means making a purchase, accessing a free trial, resolving a problem, navigating your website, or getting something done in your product. CES is measured by surveying customers after a specific interaction and asking them to rate how easy or difficult it was to accomplish their goal. High-effort interactions, ones that make customers repeat information, deal with multiple people or screens, or search through irrelevant content, are the primary driver of disloyalty.

Customer Lifetime Value (LTV) represents the total net revenue a business can reasonably expect to generate from a single customer account throughout the entire duration of their relationship. This metric goes beyond simple transaction analysis by incorporating customer retention patterns, purchasing frequency, and profit margins to provide a comprehensive view of customer economic value. LTV serves as a cornerstone metric for strategic decision-making, enabling businesses to optimise acquisition spending, prioritise retention efforts, and identify high-value customer segments that drive sustainable growth.

CSAT is a measure of how satisfied customers are with a company's products or services, most often collected through a survey. It captures customer perception at a specific point in time and is one of the most widely tracked customer experience metrics because it is simple to collect, easy to interpret, and flexible enough to apply at both a granular and aggregate level.

One of the most fundamental metrics, Customers is the total count of paying patrons of your business. Without paying customers there is no growth and no value in your business. To accurately assess your customer base, it's important to track new and returning customers as they play a different role in your business. New Customers refer to users who just signed up or made their first purchase with your company while Returning Customers are those who have already made a purchase in the past.

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.

Expansion Monthly Recurring Revenue (MRR) Growth Rate measures how quickly your existing customers are increasing their spending with you, expressed as a percentage of your total MRR base. This metric captures the velocity of revenue expansion from upsells, cross-sells, add-ons, and seat expansions within your current customer cohort. While typically reported monthly (e.g., "Our Expansion MRR Growth Rate was 4.2% in March"), it can also be annualised for strategic planning purposes (e.g., "We achieved a 65% annual Expansion MRR Growth Rate last year"). This metric is fundamentally different from simple expansion revenue totals because it contextualises growth against your entire revenue base, making it particularly valuable for benchmarking and forecasting as your business scales.

First Response Time (FRT) is the average time an agent takes to send an initial reply to a customer support ticket or inquiry. It measures the gap between when a customer submits a request and when your team first acknowledges it — a direct signal of support team availability and operational maturity.

Goal conversions represent the successful completion of predefined actions that align with your business objectives and indicate meaningful user engagement with your website or digital platform. Unlike simple page views or clicks, goal conversions measure outcomes that directly contribute to your business success, such as form submissions, product purchases, newsletter sign-ups, or content downloads. Understanding goal conversions is essential for evaluating the effectiveness of your marketing campaigns, website design, and overall digital strategy.

Gross Margin is a profitability ratio that measures Gross Profit as a percentage of total revenue. Typically, it is calculated as Gross Profit divided by Revenue. This metric is a key indicator of a company's financial health and operational efficiency.

Gross Monthly Recurring Revenue Churn Rate (Gross MRR Churn Rate) is the percentage of recurring revenue lost due to both cancellation and downgrades. Note that it is common to express this metric as a monthly rate, though it can also be expressed as Gross ARR Churn Rate.