Founder Metrics – Page 5

R&D Productivity is a performance measure of how much new revenue is associated with dollars invested into R&D within a technology company.

Refunded Charges is the total value of payments returned to customers within a defined period. It measures how much revenue you are reversing and helps identify product, service, or fulfilment issues driving refund volume.

Refunded Charges Count is the total number of individual refund transactions processed back to customers within a given period.

Renewal rate is the percentage of customers who renew their subscription within a defined invoicing cohort, measured against the total customers up for renewal in that period. It tracks churn and retention at the cohort level rather than against total customer count, making early trends easier to spot.

Return on Incremental Invested Capital (ROIIC) is an efficiency metric that measures the change in net operating profit after tax as a percentage of the change in invested capital from a prior period. It isolates the productivity of new investment, making it a sharper tool for evaluating whether growth spending is creating value.

Revenue Growth Rate measures the percentage increase in a company's revenue over a specific time period. This fundamental metric indicates your company's momentum, market position, and overall business health. As one of the most scrutinized metrics by investors, executives and stakeholders, it provides critical insights into the effectiveness of your sales strategies, market expansion efforts, and product development initiatives.

Sales Cycle Length is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.

SAM measures the revenue opportunity of capturing a specific market for a product or service within your limitations and reach.

Serviceable Obtainable Market (SOM) measures the realistic revenue potential of a product or service in a particular market.

Spend Lift is a loyalty metric that measures the increase in customer spending between two time periods, showing whether loyalty programs or promotions are driving real revenue growth.

The Rule of 40 is a SaaS financial metric that balances revenue growth versus profit margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of your SaaS company.

Total Addressable Market (TAM) is a measure of the maximum revenue opportunity available if a product or service captured 100% of its target market.