Most common formulas for rev ops KPIs

1. Customer Acquisition Cost(CAC)

Where: Total Cost of Sales and Marketing includes salaries, overheads, marketing campaigns, advertisements, etc., over a specific period. Number of New Customers Acquired is the count of new clients gained over the same period.

2. Customer Lifetime Value(CLTV)

Where:

• Average Revenue per Account(ARPA) is the average revenue generated from a customer each month.
• Gross Margin is the percentage profit earned from the customer after deducting servicing costs.
• Average Customer Lifespan is the average number of months a customer stays with the company.

3. Sales Cycle Length

This isn't a formulaic KPI but a measurement. It's calculated by taking the average number of days it takes to close a deal, from the initial contact to the final sale.

4. Lead Conversion Rate

5. Account Expansion Rate

6. Net Promoter Score(NPS)

Where:

• Promoters are customers who give a score of 9 or 10(on a scale of 0 to 10) when asked about their likelihood to recommend the company.
• Detractors are those who give a score of 0 to 6.

7. Churn Rate

8. Proposal - to - Close Ratio

9. Average Order Value(AOV)

10. Purchase Frequency(PF)

11. Cart Abandonment Rate(CAR)

12. Customer Retention Rate(CRR)

13. Return on Advertising Spend(ROAS)