How to measure revenue operations

Benefits of measuring these KPIs

 1. Pipeline generation  

• Why it’s beneficial: Understand overall demand and if you’re creating enough pipeline to achieve your sales targets. You can also calculate down funnel metrics based using this information.   

• How to calculate pipeline generation: review the number of leads created  

2. Win rate  

• Why it’s beneficial: Focus on win rate and understand what that says about customer experience—and how your solutions resonate with customers.  
• How to calculate win rate: closed-won deals / closed-won + closed-lost deals 

3. Sales as a percentage of plan  

• Why it’s beneficial: This shows how well you’re pacing to meet your goal and where there may be opportunities to drive more business  
• How to calculate sales as a percentage of plan: Closed-won deals / plan goal  

4. Percent of sales from cross-sell, upsell, and new logos  

• Why it’s beneficial: You need to understand how you’re growing the base of the business Net new logos show effective marketing is, while cross-sell and upsell indicate if the customer is having a good experience.  
• How to calculate the percent of sales from cross-sell, upsell, or new logos: Number of cross-sell deals / total closed-won deals  

5. Lifetime value (LTV)  

• Why it’s beneficial: It’s important to understand the long-term health and profitability of your business. It enables you to look beyond short-term KPIs that are easily affected by macro events, such as seasonality, political-economic factors, and global pandemics.  
• How to calculate LTV: value of the customer to the business  

6. Customer Acquisition Costs (CAC)  

• Why it’s beneficial: CAC determines how costly—and ultimately how profitable—growth is for your company. If CAC is too high relative to LTV, then growth won't be sustainable because acquiring customers will cost more than the profit generated from each customer. CAC also helps you understand how to create scale efficiency over time.  
• How to calculate CAC: Total expenses to acquire customers (cost of sales and marketing) / total number of customers acquired over a given time.  

7. Customer satisfaction and feedback (CSAT)  

• Why it’s beneficial: You can learn about general customer happiness and measure your business against your competition.  
• How to calculate CSAT: The number of satisfied customers (those who rated you 4 or 5) / the total number of responses  

8. Customer churn  

• Why it’s beneficial: This data provides critical insights into the strengths, weaknesses, and opportunities associated with your company and its offerings.  
• How to calculate customer churn: Lost Customers / total customers at the start of time period  

9. Regrettable attrition  

• Why it’s beneficial: Employee turnover consists of employees deciding to leave the organization of their own accord, providing insight into the strengths and weaknesses of your process. It can also help predict hiring and onboarding costs for new hires.  
• How to calculate regrettable attrition: Number of attritions/average number of employees  

10. Sales productivity  

• Why it’s beneficial: This KPI allows you to look at the sales process to see where efficiency can be gained. Look at close rate, deals by stage, touchpoints logged, etc.  
• How to calculate sales productivity: total sales revenue / the total number of sales team members  

These metrics are a great starting point, but without reliable data, they mean nothing. Data can be siloed between departments which creates inconsistency and incompleteness.   

To dismantle data silos, you need to connect the dots from scattered systems. Make your tech stack work for you by streamlining point systems and overlapping functionality between teams and tools.  

Revenue solutions are known for being complicated, disconnected, and difficult to manage. Conga’s Revenue Lifecycle Solution connects and standardizes processes across all teams to create one unified system—not several fragmented ones. Eliminate silos and inform insight-driven, executive decision-making from a single source of truth with trusted analytics of the entire revenue lifecycle.  

Read all about using data to enhance the entire revenue lifecycle by reading our blog The Quote-to-Cash Process in 10 Steps.