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4 terms

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.

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Retention

Gross Revenue Retention

Gross revenue retention measures retained recurring revenue from an existing customer cohort before counting expansion revenue.

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Retention

Net Revenue Retention

Net revenue retention measures how much recurring revenue is retained from existing customers after churn, contraction, expansion, and price changes.

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Pipeline

Sales Velocity

Sales velocity measures how quickly qualified opportunities turn into revenue over a given period.

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