Average Deal Size
Average Deal Size divides the total booked revenue in a given time period by the number of deals closed in that time. Remember to stay consistent in your times chosen (month, quarter, year, etc.) to better understand your change in deal size over time.
(Pro tip: You can use this calculator to compare deal sizes for certain reps, regions, partners, etc.).
How to get data: Reference your sales software to see how many deals were closed in the specified time frame much revenue was booked or attained.
Read more here.
Win-Loss Rate
"Win-Loss compares the amount of deals won versus deals lost. Ideally, you'd want to see the percentage of deals won growing over time. You can further analyze your win-loss review by comparing reasons for lost deals – which sums automatically – or just enter your total lost deals.
(Pro tip: You can use this calculator to analyze win-loss for certain reps, regions, partners, etc.)."
How to get data: Review your sales software to see how many deals were won and lost. For further detail, dig into the loss reason (price, features, timeline, revisit, etc.) and fill those reasons into the bracketed [Reason #] lines. This will help you determine what the primary cost of your deal loss is.
Read more here.
Revenue by Product Line
The purpose of analyzing revenue by product line is to help your sales team have certainty in the popularity and profitability of the products and services in your suite for a given time frame. This analysis, in turn, can be passed off to your company's product and marketing teams so they can better understand which products and services to improve and promote, respectively. We've also provided a graph for visual aid.
Read more here.
Sales Employee Turnover Rate
Sales is notorious for having a high industry turnover rate, and this is why you should constantly monitor your turnover rate to see how you're doing.
The number is calculated by dividing the number of employees added to your sales team by the average number of employees in that same time frame.
Read more here.
Average Deal Size
Cost of Goods Sols (COGS) calculates the amount your company spent on direct materials that were sold in a given time period.
It looks at the amount of inventory you started off with and later purchased in that time and subtracts the cost of the inventory that was sold. High COGS suggests you're selling inventory quickly, which is a good thing.
How to get data: Check your recorded inventory levels at the start of the period, your current (ending) inventory, and your order invoices for purchased inventory.
Read more here.
Customer Acquisition Cost
Customer acquisition cost, or CAC, is the amount of money spent on sales and marketing required to close a deal. It is calculated by summing a company's total sales and marketing spend and dividing it by the number of new customers. Companies can calculate CAC for a given time period or all time, and the metric is helpful to compare the effectiveness of different marketing tactics and strategies. A lower CAC is better, as it suggests your marketing and sales teams are efficient and properly scaled.
Read more here.
Customer Lifetime Value
Customer lifetime value equates to the revenue an average customer will provide a company before they discontinue their patronage. There are a few different equations used to calculate CLV, but for our purposes, we'll be using the simple CLV formula to multiply average annual revenue by the average lifespan of a customer.
Read more here.
CAC-to-CLV
This metric compares the customer's acquisition cost to the revenue that customer will provide over time. It helps businesses know if customers churn before they start contributing profit to the company. Sales teams can use this information to determine better pricing strategies and how to better position their products in the sales process to reduce churn.
How to get data: Refer to the metrics calculated on the previous two tabs, which will be entered on this tab if they've already been determined. You can also enter the numbers manually if you have them recorded.
Read more here.
Customer Retention Rate
Retention rate is a metric used to see how many customers have stopped coming to your business or have cancelled their membership, subscription, or patronage. A low churn rate is good – that means you're keeping most of your clients and customers happy.
How to get data: Choose a specific period of time – one year, one month, all time, etc. – and be consistent in entering the metrics from that time for accuracy.
Read more here.
Revenue Churn
Revenue churn reveals how much revenue was lost in a given period. For subscription-based companies, this is an important metric to calculate.
How to get data: Choose a specific period of time – one year, one month, all time, etc. – and be consistent in entering the metrics from that time for accuracy.
Read more here.
Note: If the number above is in parentheses, that's good! It shows you had a negative churn, meaning your revenue actually grew.