When it comes to SaaS metrics, you’ve got your SaaS starter pack. In addition to those, tracking sales pipeline metrics will help you get a feel for the performance of your sales process and how it affects your growth.
Alicia McDonald gives us the important pipeline metrics to track:
1. Leads – How many sales contacts are you generating each month?
2. Lead Velocity Rate (LVR) – The percentage change in leads month over month.
3. Conversion – What percentage of leads are turning into deals?
• Conversion % = Deals / Leads
4. Sales Velocity – What amount of bookings are generated over the length of the sales cycle (usually measures in months)?
• (Leads x ACV x Conversion %) / Sales Cycle
5. Customer Acquisition Costs (CAC) and CAC Payback (# of months to recoup CAC) – Tracking these by Acquisition Channel allows you to identify which channels are most expensive, which generate the most sales, etc.
Note: It is also common to calculate the metrics above with Qualified Leads. Leads become Qualified when it’s determined they have the intent and ability to buy.
Finally, make sure to keep your sales pipeline clean so your metrics are accurate.