After raising a seed round, measuring sales metrics becomes critical to prepare for a successful Series A. Investors at this stage look for signs of product-market fit, scalability, and efficient growth. Metrics like Customer Acquisition Cost (CAC), Customer Lifetime Value (CLTV), and Sales Growth help demonstrate that you can acquire and retain customers efficiently. Metrics such as Monthly Recurring Revenue (MRR) and Churn Rate reflect the stability and sustainability of the business. Having these metrics shows that you understand your business model, making you a more attractive investment.
Bowery specializes in go-to-market strategy and early talent acquisition, with a central focus on a company's revenue streams. These metrics are crucial for successfully securing a Series A funding round. This cheat sheet serves as your roadmap for the key metrics to report on right from the start and to ensure your CRM is configured to track these metrics effectively. These metrics can guide you on where and how to invest your time to influence specific outcomes.
Sales Growth: Measures revenue increase over a period. YOY growth is what is most important.
Formula: (Revenueincurrentperiod−Revenueinpreviousperiod)/ Revenueinpreviousperiod × 100
Customer Acquisition Cost (CAC): Total cost to acquire a new customer.
Formula: Total sales & marketing costs / Number of new customers acquired
Customer Lifetime Value (CLTV): Total revenue a customer generates during their lifecycle.
Formula: Average purchase value × Purchase frequency × Customer lifespan
Lead Conversion Rate: Percentage of leads turned into customers.
Formula: (Converted leads / Total leads) × 100
Pipeline Coverage Ratio: Measures the ratio of total opportunities in the pipeline to the revenue target for a period.
Formula: Total Pipeline Value / Revenue Target
Average Deal Size: Average revenue per closed deal.
Formula: Total revenue from deals / Number of deals closed
Sales Cycle Length: Time it takes to close a deal.
Formula: Total days to close deals / Number of closed deals
Sales Velocity: Measures the speed at which deals are progressing through the pipeline, helping forecast future revenue.
Formula: (Number of Opportunities × Average Deal Size × Win Rate) / Sales Cycle Length (in days)
Churn Rate: Percentage of customers lost over a period.
Formula: (Lost customers / Total customers at the start) × 100
Quota Attainment: Percentage of a salesperson’s goal achieved.
Formula: (Actual sales / Sales quota) × 100
Win Rate: Percentage of deals won from total opportunities.
Formula: (Won deals / Total opportunities) × 100
Monthly Recurring Revenue (MRR): Recurring revenue generated monthly.
Formula: Total monthly subscription revenue
