Sales people are intrinsically target-oriented and also competitive. Measuring their progress against an MRR target and comparing their progress against peers taps into these competitive and target-orientated traits that do drive motivation.

What is MRR Closed vs Quota?

MRR Closed vs Quota is the amount of new MRR closed by a SaaS sales team vs the quota or target they were set.

How to calculate MRR Closed vs Quota:

MRR Closed / MRR Quota = MRR Closed vs Quota

For example, if a sales rep had closed $8,000 of MRR against a quota of $10,000 then their MRR Closed vs Quota would be 80%.

$8,000 / $10,000 = 80%

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What is Customer Lifetime Value (LTV)?

LTV measures the revenue your business makes from any given customer. It is an estimate of the average gross revenue that a customer will generate before they churn.

How to calculate Customer Lifetime Value (LTV):

Average Revenue Per Account (ARPU) / Customer Churn Rate = Customer Lifetime Value (LTV)

Customer Lifetime Value helps you make important business decisions about sales, marketing, product development, and customer support. Some useful applications include tracking your LTV to Cost of Acquiring a Customer (CAC) ratio, measuring LTV for each marketing channel in order to identify those channels which acquire the most valuable users, or minimizing churn by nurturing customers with the highest LTV in order to maximize MRR growth.

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What is Completion Rate?

Completion Rate measures the percentage of users who complete a specific business goal or a series of goals e.g. sharing a document, subscribing to a mailing list, connecting a dashboard to a screen. Within your onboarding process, it will be an indicator of whether the users who have activated your service are ready to move to the next step in your funnel.

How to calculate Completion Rate:

(#)of users who completed the goal(s) / total (#)of users who have activated the service = Completion Rate

You can use either Google Analytics or Mixpanel to track your key events.

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