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26 Metrics & KPIs Every RevOps Team Should Track

Stan Rymkiewicz
March 15, 2024
9 min
26 Metrics & KPIs Every RevOps Team Should Track

There’s no “silver bullet” for GTM or revenue growth. But if there was, it would be revenue operations, or RevOps.

A well-oiled RevOps machine can accelerate GTM effectiveness without requiring you to hire more marketers, salespeople, or customer success reps. Rather than a specific function, RevOps is an operating model with three key elements:

  • End-to-end engagement supporting the entire customer lifecycle
  • Integration across GTM functions—sales, marketing, and customer success
  • Observable systems and processes and visibility into execution and outcomes

That last point—observability—is critical for RevOps success. But before you can observe what’s working (or not), you need to know what to look for. That’s where RevOps KPIs come into play.

Here are 26 RevOps KPIs and metrics to start tracking today if you want to accelerate revenue, tighten your pipeline, and maximize GTM resource use.

Sales & revenue metrics

Every RevOps team should start with a clear picture of sales and revenue, the foundation upon which their efforts rest. These RevOps metrics are a good place to start.

1. Monthly (MRR) and Annual Recurring Revenue (ARR) 

MRR and ARR give you a baseline for measuring current performance and alignment with revenue goals. Measuring changes in both KPIs over time indicates positive or negative business growth. 

2. Weighted Pipeline Value 

Measuring MRR and ARR, while important, are lagging indicators. Equally important are RevOps metrics that serve as leading indicators, one of which is Weighted Pipeline Value.

This compound RevOps KPI is found with the following formula: 

(Number of Deals in Pipeline) X (Average Contract Value) X (Win Rate) = Pipeline Value

So, for example, 100 deals, at $50,000 Average Contract Value, and a 30% Win Rate, gives you a Weighted Pipeline Value of $1,500,000. If that aligns with your quota, then your odds of meeting your revenue goals are good. If not, you’ll need to build pipeline. 

3. Sales Velocity

If you want to take sales forecasting to the next level, start measuring Sales Velocity. This RevOps metric measures Weighted Pipeline Value against Average Sales Cycle Length (the time it takes for a lead to start generating revenue). 

To measure Sales Velocity, divide Pipeline Value by the Average Sales Cycle Length. Continuing from the previous example, if your sales cycle is 120 days, your sales team can generate $12,500 per day. 

Measuring Sales Velocity is key to ensuring your operation remains profitable and maintaining positive cash flow. 

4. Revenue Per Employee

Revenue Per Employee is an efficiency metric calculated by dividing total revenue by number of employees. This RevOps KPI can show how efficiently your current resources are generating revenue. 

As a business scales, Revenue Per Employee will change—mature companies generate more Revenue Per Employee than early-stage companies. Low Revenue Per Employee relative to a company’s growth stage can indicate poor performance or inept RevOps processes. 

5. Sales Quota Attainment

Another key RevOps metric is Sales Quota Attainment. While most organizations see this as a measurement of sales team effectiveness, it can also indicate the alignment of your revenue expectations with reality.

Business leaders—especially in early-stage companies—often set aggressive but unrealistic targets. If your sales team is wildly missing the mark, that can be a sign that you’re expecting too much of your current team. Alternatively, it could be the result of poor processes, requiring action to improve current sales motions.

6. Lifetime Value to Customer Acquisition Cost Ratio (LTV:CAC)

This powerful combination of RevOps KPIs helps evaluate the sustainability of your business model. 

Customer Lifetime Value (LTV) indicates the total revenue a customer will bring in over the entirety of their engagement with your business. Customer Acquisition Cost (CAC) measures the total cost to acquire new customers. 

On their own, neither provides meaningful insight as a RevOps metric. Is a high CAC a bad thing? Not if you’re bringing in customers with even higher LTVs and driving a positive ROI. That’s why it’s important to measure these two RevOps KPIs as a ratio. 

Forecasting metrics

While it’s important to look back and learn from previous successes (and failures), looking ahead is equally important so you can take action before issues arise. These forecasting metrics are critical RevOps KPIs, as measuring them can help drive real-time, proactive decision making. 

7. Pipeline Predictability

Pipeline Value and Sales Velocity are only helpful if they align with actual financials. Pipeline Predictability measures the degree of variance between these predictions and reality. If the variance is too high in either direction, you need to reevaluate the data or calculations underlying both of these revenue metrics. 

8. Pipeline Coverage Ratio

Pipeline Coverage Ratio is a RevOps KPI that measures whether your current Pipeline Value is enough to cover your sales quota. If not, this is a clear sign that Marketing, SDRs, and Customer Success need to acquire new leads.

RevOps teams that measure Pipeline Coverage Ratio proactively can spot this misalignment in enough time to move quickly. However, it requires active monitoring and early detection. Otherwise, by the time you sound the alarm, it’s too late.

9. Customer Acquisition Forecast

Another important RevOps metric is your Customer Acquisition Forecast, or the number of customers you expect to acquire within a given time period. This can be especially helpful for measuring Marketing and SDR lead generation effectiveness in supporting your revenue targets. 

10. Churn Rate Forecast

Customer churn is an unfortunate reality for any business. Rather than ignore it, RevOps teams should proactively measure and manage it. When you can identify the warning signs of churn in advance, you can take action to either manage customer attrition or offset lost revenue.

Process & operation metrics

The RevOps methodology assumes that process is as important, if not more important, than individual performance. By continually measuring and optimizing your processes, you can help ensure individual and team efforts translate into business outcomes. 

11. Lead to Customer Conversion Rate

RevOps teams must continually measure Lead to Customer Conversion Rate not only against industry standards, but historical performance. This is the first and most obvious indicator of a marketing-sales aligned process.

12. Sales Cycle Length to Average Deal Size Ratio

If we take as an assumption that larger deals take longer to close, a spike in Sales Cycle Length with no corresponding increase in Average Deal Size can indicate breakdowns in the sales process and languishing deals. 

13. Conversion Rates

Different functions use various conversion rates as KPIs. RevOps teams, however, need to measure all of them to gauge the cross-functionally health of the pipeline.

Some of the most important conversion rates for RevOps teams to measure include:

Even small improvements in conversion rates earlier in the funnel can have exponential impacts down the line. By examining the entire funnel, RevOps teams can identify these areas for optimal improvement and make changes in real time. 

14. Time Spent on Manual Tasks

Too often teams will spend time on manual tasks that distract from mission critical, revenue generating activities. RevOps teams can identify these areas—data entry, note taking, meeting scheduling, follow-ups, etc.—and propose automations and technology tools to help individuals and teams work more efficiently. 

15. Technology Utilization Rates

However, technology won’t work unless people use it. That’s why RevOps teams must also measure Technology Utilization Rates, identifying underused functions or under-engaged individuals and work to drive their adoption.

Marketing metrics

While not every marketing metric is relevant to RevOps, some directly impact the revenue cycle and require active monitoring. In addition to the conversion rates mentioned above, here are additional marketing-specific RevOps metrics to measure. 

18. Marketing-Sourced Revenue

Marketing-Sourced Revenue measures total revenue generated from marketing leads, demonstrating Marketing’s overall impact on business growth. To do this, RevOps teams require accurate attribution data to make this determination. 

Different marketing organizations will swear by first-touch, multi-touch, or last-touch attribution models when, in reality, these models each tell you different things:

  • First-touch attribution tells you the lead’s first measurable engagement and where you started tracking their journey (even though their journey began long before that first engagement)
  • Multi-touch attribution tells you how many marketing engagements are necessary to nurture a lead to become sales-ready
  • Last-touch attribution tells you which campaign or piece of content convinced the lead to move from passive to active consideration

Before RevOps teams can measure Marketing-Sourced Revenue, you need to work with Marketing and Sales leaders to determine what “counts” as a sourced lead, and use that agreed-upon definition going forward. 

17. Marketing-Influenced Revenue

Marketing-Sourced Revenue, while relatively straightforward to measure, fails to take into account a key reality in modern digital marketing: customer journeys aren’t linear, which means Marketing’s impact is often more expansive than simple attribution models show. 

Consider, for example, the following common behaviors in digital customer journeys:

  • Omnichannel customer touchpoints. Customers come into contact with your brand at many points, some of which are difficult to measure. Identifying Marketing’s impact, then, isn’t as simple as identifying the lead’s point of entry into the funnel. 
  • Double-backs. Because customer journeys are nonlinear, customers will loop back, skip stages, and enter your inbound flow at different points. 
  • Decision-making units. B2B buying decisions rarely rest on a single person. So you could have a situation where a sales rep contacts a decision maker, who is then influenced by an internal stakeholder already familiar with your marketing and brand content. 

While Marketing-Sourced Revenue is important to measure, Marketing-Influenced Revenue shows you the full scope of Marketing’s ROI. 

This requires a more complex look at attribution and more rigorous management of channels, campaigns, and engagement measurement. However, it’s important to measure those activities that influence the sales process and indirectly drive revenue.

18. Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV) by Marketing Channel

One of RevOps’s key value props to the business is the ability to identify the best places to devote resources. So RevOps teams should break down CAC and LTV by marketing channel to figure out which delivers the best ROI.

It’s important to keep in mind your attribution model at this stage. A paid LinkedIn Ad campaign, for instance, can have a high ROI. But is it because you’re investing in high-quality content to support that campaign? Or you’re maintaining an active organic LinkedIn presence and elevating your brand reputation? 

19. Sales and Marketing SLA (Service Level Agreement) Compliance

Mature Marketing and Sales organizations leverage Service Level Agreements (SLA) to ensure Marketing provides sufficient leads for Sales to meet quota, and Sales takes sufficient action on those leads to generate revenue. RevOps teams should ensure both parties’ compliance with SLAs to ensure both teams can meet their individual KPIs. 

Customer success metrics

While generating new business should be every organization’s core focus, retaining or increasing revenue from current customers presents low-hanging fruit. Here are some RevOps KPIs that measure Customer Success’s maintenance of your existing customer base.

20. Net Revenue Retention (NRR)

Customer Success’s primary job is to retain and grow revenue among existing customers. Net Revenue Retention (NRR) is a good RevOps metric for customer health because it takes into account the realities of business: upgrades, downgrades, and churn. 

NRR is calculated according to the following formula:

NRR = (Net recurring revenue - Revenue lost from churned customers - Revenue lost from downgrades + Revenue gained from cross-sells and upsells) / (Base recurring revenue) x 100

So let’s say a company started January with $80,000 from existing customers, ended with $100,000 from those same customers, lost $5,000 from churn, $3,000 from downgrades, and $7,000 from cross-sells and up-sells, NRR would be:

NRR = ($100,000 - $5,000 - $3,000 + $7,000) / $80,000 X 100

NRR = 123%

In most industries, an NRR greater than 100% is a great sign, so this organization is doing well. Additionally, NRR can be calculated on a monthly or annual basis, allowing for flexibility depending on your business model. 

21. Average Contract Value (ACV) Growth

In addition to driving retention, Customer Success teams are responsible for cross-selling and upselling. This means that Average Contract Value (ACV) Growth is a key metric to determine their effectiveness at this core function. 

22. Customer Satisfaction Score (CSAT)

The challenge with the previous two metrics is that they measure performance after the fact. Customer Satisfaction Scores (CSAT), on the other hand, are a leading indicator. If CSATs trend downwards, that’s a sign you need to move quickly to avoid future churn. 

CSATs are measured by surveying customers and asking them to rank-order their satisfaction on a scale of 1-5, then using the following formula:

CSAT = # of satisfied respondents (rated you a 4 or 5) / # of total survey respondents X 100

So if 225 out of 250 customers rate you a 4 or a 5, the result would be:

CSAT = 225 / 250 X 100

CSAT = 90%

If you want to be able to catch CSAT variances, your Customer Success team needs to capture survey data in real time. For example, at the end of onboarding calls, check-ins, and renewals. That way, you’re constantly seeing changes as they happen, and can drive action faster. 

23. Adoption Rates

Despite CSAT’s helpfulness, it’s still a subjective metric. For a more holistic view of customer satisfaction, you need objective indicators of customer satisfaction, which Adoption Rates can provide.

It’s also important to measure CSAT against Adoption Rates. If there’s a high variance, perhaps your primary contact isn’t accurately reflecting the opinion of the end user and giving you a false sense of confidence in their likelihood of renewal. 

Technology & system metrics

RevOps teams are also responsible for managing the systems and technologies used across Marketing, Sales, and Success organizations. So it’s important for them to measure the technology performance to avoid major breakdowns that impede revenue teams’ success. 

24. System performance

For starters, RevOps teams need to make sure all systems are functioning efficiently. Which means staying on top of the following metrics:

  • Uptime
  • Downtime
  • Response time
  • Integration efficiency
  • Platform availability
  • Error rates

Small problems in these areas will require additional troubleshooting. Major problems—like misfiring integrations—could require you to replace your current solution. 

25. Data quality

Key to measuring a system’s performance is the quality of data. If you have a point solution that captures data, but your API won’t port it to your CRM or marketing automation platform, you can’t effectively measure inbound performance—which means RevOps can do its job.  

26. Internal adoption rates

If no one uses your technology, it won’t help your organization. That’s why it’s important to measure internal adoption rates across all functions. Then you can conduct training, communicate the value of the tools, drive accountability, and, in extreme cases, consider switching to more comprehensive, user-friendly solutions. 

Final thoughts on RevOps KPIs and metrics

Sound like a lot? That’s probably because RevOps is a comprehensive methodology that demands insight into many areas. 

To measure all of these metrics, you need systems and technology that will function seamlessly, prevent data loss, and ensure you not only can identify problems but pinpoint solutions in your marketing and sales funnels.

Because Default is an all-in-one inbound platform, all your data stays secure in one location, enabling clear, consistent measurement of key RevOps KPIs. 

See Default in action—schedule a demo today.

Revenue Operations
All Articles
Stan Rymkiewicz
March 15, 2024
9 min

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