Key Metrics for RevOps

Revenue Operations (RevOps) is a relatively new methodology but one that’s growing quickly in popularity for its ability to align functional teams for revenue growth. You want to adopt RevOps or even launch a RevOps team, but what are the key metrics for measuring RevOps success?

Gartner predicts that 75% of the highest growth companies in the world will be using a RevOps model by 2025 to move from a sales-based approach to a revenue-focused team-aligned strategy. Doug Bushée, senior director analyst in the Gartner Sales practice, says:

“Progressive organizations are beginning to align sales, marketing and customer success technology, data and KPIs to provide an end-to-end view of the revenue-generating engine.”

So, what are the KPIs for RevOps?

How to Measure RevOps Success

RevOps shifts attention to an end-to-end view of operations. It means leaders must support and manage sales but also revenue-generating marketing and customer teams. RevOps, per Gartner, “offers a continuous feedback loop across the buyer journey and creates one singular go-to-market model for driving end-to-end revenue growth and customer acquisition.”

Your goals for RevOps and the associated metrics will depend on your organisation's size, structure, and industry. They will also vary as to whether you lead RevOps, create a RevOps team, or even have RevOps ambassadors in each core RevOps function. Your company language will also be appropriate to its culture, but this list is a broad idea of what can be measured.

RevOps metrics generally focus on KPIs for marketing, sales, and customer teams and combine these elements:

Value

Metrics that quantify deal size (or value) as they move through the sales process and become revenue. 

Volume

The number of deals moving through the sales process to become revenue. 

Velocity

The speed at which deals move through a sales process or pipeline and turn into revenue. 

‍Conversion Rates

These are the rates at which deals move from stage to stage and can be from lead-to-revenue or from another stage, such as prospect-to-revenue, depending on how you segment your pipeline.

Revenue metrics

Annual Recurring Revenue (ARR)

Recurring revenue based on repeat customers or yearly subscriptions.

Revenue Retention Rate

Also expressed as Net Revenue Retention and calculated by taking the net increase in revenue from existing customers at the end of a given time and dividing it by the beginning period revenue from the same customers. 

You’ll also use more common revenue metrics and periodic totals to track your RevOps success. 

Sales metrics 

Sales Pipeline Velocity

Individual pipelines can be segmented for this metric, for instance, one calculation for small business customers and another for enterprise clients. 

Sales Velocity = Number of Opportunities x Deal Value x Win Rate / Length of Sales Cycle

Sales Forecast

The volume of sales (revenue) over a given period.

Customer Lifetime Value (CLV)

The total value of a customer to your business over time. This metric identifies the value of maintaining long-term customer relationships. 

Win/Conversion Rate

The sales generated over a given period.

Customer Turnover Rate

The number of lost customers over a given period.

Average Deal Size

The average revenue value per deal. 

Win/Loss Ratio

The number of deals won versus the number of deals lost by a sales team. 

Sales Cycle Time

The number of days for a deal to close divided by the number of closed deals

Marketing metrics

Marketing Qualified Leads (MQLs)

The number of leads that make it through the marketing funnel and are passed to the sales team. 

Customer Acquisition Cost (CAC) 

The cost of acquiring a new customer. Calculated by total sales and marketing costs divided by the number of new customers acquired over a given period.  

Lead Conversion Rate (LCR)

The percentage of leads converted into customers. Calculated by the number of conversions divided by leads generated expressed as a percentage (*100%). 

Cost Per Lead (CPL)

Calculated by total marketing spend divided by the total number of new leads over a given period. 

Marketing Campaign ROI

The return on investment (ROI) of a marketing campaign. This metric can be calculated by taking the sales growth from a product line, subtracting the marketing costs and dividing by the marketing cost. 

Customer metrics

Customer Churn

The percentage of customers lost over a given period.

Customer Satisfaction Score (CSAT)

A metric for how satisfied your customers are with their experience. This is calculated by taking the sum of all positive responses (for instance a rating of 4 or 5 out of 5) divided by the total responses collected and then multiplied by 100. 

Net Promoter Score (NPS)

This measures customer satisfaction and loyalty. It can be calculated by taking a custom survey to discover how likely they are to recommend your business on a scale of 0-10. You can organise the response into Detractors (0-6), Passives (7-8), and Promoters (9-10). To calculate NPS, subtract the percentage of Detractors from the percentage of Promoters.

There are many more variations, and your pricing and sales process will determine further metrics, for example, if you have a subscription model. 

Of vital importance is that you are monitoring, measuring, and reviewing the success of your RevOps strategy. Any KPIs must always follow the “SMART” rule of being Specific, Measurable, Achievable, Relevant, and Time-Bound to make for meaningful goals teams can understand and use to track their own progress. 

We’ve purposefully segregated this list into revenue, sales, marketing, and customer metrics, but KPIs and goals can also be shared between teams or cross-functional projects to ensure that departmental barriers and silos are removed and each department shares the revenue focus. 

To achieve the greatest outcome, RevOps metrics must be aligned with your overall business goals. This will ensure seamless collaboration between teams, leaders, and processes towards the singular goal of revenue generation. 

Today’s powerful marketing and CRM platforms are revenue-focused and use AI to intelligently track and analyse a multitude of metrics for your business. That means you don’t have to find yourself manually calculating your RevOps success over a given time. If you’re using an intelligent, comprehensive platform across all departments, you’ll be able to access visual dashboards in real time, share performance instantly with your teams, and respond accordingly with powerful data-driven decision-making. 

If you haven’t yet adopted a RevOps-focused platform or need help turning your RevOps goals into KPI-led performance and revenue growth, consider a technology partner focused on RevOps.