Sales Metrics

Frameworks for measuring and forecasting sales performance.

Leading vs Lagging Indicators

Leading Indicators (Predictive)

Metric	Definition	Target Setting
MQLs	Marketing qualified leads	Based on conversion rates
SQLs	Sales qualified leads	MQL x MQL-to-SQL rate
Opportunities	Discovery completed	SQL × qualification rate
Pipeline	Weighted opportunity value	3-4x quota coverage
Meetings Booked	First meetings scheduled	Based on rep capacity
Proposals Sent	Active evaluations	Based on demo-to-proposal rate

Lagging Indicators (Results)

Metric	Definition	B2B SaaS Benchmark
Win Rate	Won ÷ (Won + Lost)	20-30%
Sales Cycle	Qualified to Close	30-90 days (SMB), 90-180 days (Enterprise)
ACV	Average contract value	Varies
CAC	Total S&M ÷ New customers	< 1/3 LTV
LTV:CAC	Customer lifetime value ÷ CAC	> 3:1
CAC Payback	Months to recover CAC	< 12 months

Conversion Rate Benchmarks

Stage	Benchmark Range
Visitor to Lead	1-5%
Lead to MQL	10-30%
MQL to SQL	15-30%
SQL to Opportunity	40-60%
Opportunity to Win	20-30%

Overall Funnel:

• Top of funnel to customer: 0.5-2%
• Outbound response rate: 1-5%
• Cold email reply rate: 3-10%
• Cold call connection rate: 10-20%

Sales Capacity Model

Target Revenue: $X
÷ ACV: $Y
= Deals Needed: N

Deals Needed ÷ Win Rate (25%) = Opportunities Needed
Opportunities ÷ SQL→Opp Rate (50%) = SQLs Needed
SQLs ÷ MQL→SQL Rate (20%) = MQLs Needed

For Rep Planning:
Quota/Rep = $X (typically 4-5x OTE)
Target Revenue ÷ Quota = Reps Needed
Ramp time = 3-6 months to productivity

Activity Metrics (by Role)

SDR Metrics

Metric	Daily	Weekly	Monthly
Emails sent	50-100	250-500	1,000-2,000
Calls made	40-80	200-400	800-1,600
LinkedIn touches	20-40	100-200	400-800
Meetings booked	0.5-1	3-5	15-20

AE Metrics

Metric	Weekly	Monthly	Quarterly
Discovery calls	8-12	35-50	100-150
Demos	5-8	20-30	60-90
Proposals	3-5	12-20	35-60
Closes	1-2	4-8	12-24

Pipeline Health Metrics

Metric	Formula	Target
Coverage	Pipeline ÷ Quota	3-4x
Velocity	(Opps × Win Rate × ACV) ÷ Cycle	Trending up
Age	Days in stage	Below threshold
Progression	Opps moving forward	20%+ weekly

Pipeline Hygiene Rules:

• Close dead opps within 2x average cycle
• Update stage within 48 hours of change
• No opportunities without next step scheduled

Forecasting Framework

Category	Definition	Weighting
Closed	Signed contract	100%
Commit	Verbal yes, paperwork in flight	90%
Best Case	Strong signal, proposal accepted	50%
Pipeline	Active, qualified opportunity	25%
Upside	Early stage, unqualified	10%

Forecast Formula:

Forecast = Σ(Opportunity Value × Stage Probability)

Revenue Metrics

Metric	Formula	Why It Matters
MRR	Monthly recurring revenue	Base health
ARR	MRR × 12	Annual run rate
Net New ARR	New + Expansion - Churn	True growth
NRR	(Start + Expansion - Churn) ÷ Start	Customer health
Gross Margin	(Revenue - COGS) ÷ Revenue	Unit economics

Sales Efficiency Metrics

Metric	Formula	Good
Magic Number	Net New ARR ÷ Prior S&M Spend	> 0.75
CAC Payback	CAC ÷ (ACV × Gross Margin)	< 12 mo
Revenue/Rep	ARR ÷ Quota-carrying reps	> $500K
Pipeline/Rep	Pipeline ÷ Reps	> 3x quota