Risk Factor Metric Calculations
Your business Risk Factor metrics provide a complete view of your company's sales effectiveness and growth potential, helping you make the right strategic decisions and improve daily operations.
| Metric Name | Description | Calculation | Time Period |
|---|---|---|---|
| Churn Rate | Churn Rate measures the percentage of customers or subscribers who cancel or do not renew their subscriptions within a certain period, expressed as revenue. It is a critical indicator of customer retention and satisfaction, reflecting how well a company maintains its customer base. | (Churned MRR / Starting MRR)*100 | Last 30 days of data |
| New + Expansion Growth Rate | New + Expansion Growth Rate combines the growth from new customers and existing customers (through upsells or expansions) over a period. It indicates the overall growth in revenue, accounting for both new business and additional revenue from current customers. | ((New MRR + Expansion MRR - Churned MRR) / Starting MRR)*100 | Last 30 days of data |
| Net Revenue Retention | Net Revenue Retention calculates the percentage of revenue retained from existing customers after accounting for churn, downgrades, upsells, and cross-sells. It is a comprehensive metric that shows how much revenue grows or shrinks from the existing customer base. | ((Starting MRR - Ending Churned MRR + Ending Expansion MRR + Ending Upsell MRR) / (Starting MRR))*100 | Last 12 months of data |
| New vs. Expansion Bookings | This metric differentiates the revenue generated from new customers (New Bookings) versus revenue generated from existing customers through upsells or expansions (Expansion Bookings). It helps your business understand growth drivers and assess sales strategy effectiveness. | New ARR / (New + Expansion ARR)*100 | Last 30 days of data |
| Win Rate | Win Rate is the percentage of deals closed successfully compared to the total number of deals in the sales pipeline. It provides insight into the effectiveness of the Sales team and the appeal of the product or service in the market. | Count of Deals Won / (Count of Deals Won + Count of Deals Lost)*100 | Rolling (all-time) |
| Sales Cycle Length | Sales Cycle Length measures the average time it takes for a prospect to move through the sales pipeline and become a paying customer. It is indicative of the efficiency of the sales process and can influence strategies for improving sales performance. | (Sum of total number of Days to Close all Won Deals / Count of Total Closed Won Deals) | Rolling (all-time) |
| Lead to Deal Conversion Rate | Lead to Deal Conversion Rate measures the percentage of leads that convert into actual sales or deals. This metric assesses the effectiveness of the lead generation and qualification process, as well as the Sales team's performance in closing deals. | (Total Number of Closed Won Deals / Total Number of Sales Qualified Leads)*100 | Rolling (all-time) |
| Net Promoter Score (NPS) | Net Promoter Score is a customer loyalty and satisfaction measurement taken from asking customers how likely they are to recommend your product or service to others on a scale of 0-10. It categorizes customers into Promoters, Passives, and Detractors, providing insights into customer satisfaction and loyalty. We measure NPS for all of your customers with currently active deals, which helps you be more reactive. | Each customer provides an NPS score of 0 to 10. Promoters: score of 9 to 10 Passives: score of 7 to 8 Detractors: score of 0 to 6 Total NPS = ((Count of Promoters - Count of Detractors) / Count of Companies))*100 |
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