sales-metrics

# Sales Metrics

Frameworks for measuring and forecasting sales performance.

## Leading vs Lagging Indicators

### Leading Indicators (Predictive)

| Metric | Definition | Target Setting |
|--------|------------|----------------|
| **MQLs** | Marketing qualified leads | Based on conversion rates |
| **SQLs** | Sales qualified leads | MQL × MQL→SQL rate |
| **Opportunities** | Discovery completed | SQL × qualification rate |
| **Pipeline** | Weighted opportunity value | 3-4x quota coverage |
| **Meetings Booked** | First meetings scheduled | Based on rep capacity |
| **Proposals Sent** | Active evaluations | Based on demo→proposal rate |

### Lagging Indicators (Results)

| Metric | Definition | B2B SaaS Benchmark |
|--------|------------|-------------------|
| **Win Rate** | Won ÷ (Won + Lost) | 20-30% |
| **Sales Cycle** | Qualified to Close | 30-90 days (SMB), 90-180 days (Enterprise) |
| **ACV** | Average contract value | Varies |
| **CAC** | Total S&M ÷ New customers | < 1/3 LTV |
| **LTV:CAC** | Customer lifetime value ÷ CAC | > 3:1 |
| **CAC Payback** | Months to recover CAC | < 12 months |

## Conversion Rate Benchmarks

| Stage | Benchmark Range |
|-------|-----------------|
| Visitor → Lead | 1-5% |
| Lead → MQL | 10-30% |
| MQL → SQL | 15-30% |
| SQL → Opportunity | 40-60% |
| Opportunity → Win | 20-30% |

**Overall Funnel:**
- Top of funnel to customer: 0.5-2%
- Outbound response rate: 1-5%
- Cold email reply rate: 3-10%
- Cold call connection rate: 10-20%

## Sales Capacity Model

```
Target Revenue: $X
÷ ACV: $Y
= Deals Needed: N

Deals Needed ÷ Win Rate (25%) = Opportunities Needed
Opportunities ÷ SQL→Opp Rate (50%) = SQLs Needed
SQLs ÷ MQL→SQL Rate (20%) = MQLs Needed

For Rep Planning:
Quota/Rep = $X (typically 4-5x OTE)
Target Revenue ÷ Quota = Reps Needed
Ramp time = 3-6 months to productivity
```

## Activity Metrics (by Role)

### SDR Metrics

| Metric | Daily | Weekly | Monthly |
|--------|-------|--------|---------|
| Emails sent | 50-100 | 25