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Revenue Metrics glossary
Metrics for retention, efficiency, pipeline movement, and revenue quality.
Efficiency
CAC Payback Period
CAC payback period is the time it takes for gross profit from a customer to recover the sales and marketing cost required to acquire that customer.
FormulaP1
Retention
Gross Revenue Retention
Gross revenue retention measures retained recurring revenue from an existing customer cohort before counting expansion revenue.
FormulaP0
Retention
Net Revenue Retention
Net revenue retention measures how much recurring revenue is retained from existing customers after churn, contraction, expansion, and price changes.
FormulaP0
Pipeline
Sales Velocity
Sales velocity measures how quickly qualified opportunities turn into revenue over a given period.
FormulaP1