Revenue Operations Metrics That Actually Matter
Stop tracking vanity metrics. Learn the 25 RevOps metrics that actually drive decisions and revenue growth. Includes formulas, targets, and dashboards.
Spartan Labs Team
Revenue Analytics Experts
Most revenue teams track too many metrics and focus on the wrong ones. They measure everything but understand nothing. Their dashboards are cluttered with vanity metrics that look impressive but don't drive decisions or revenue growth. The result? Analysis paralysis, wasted time, and missed opportunities. The best revenue operations teams focus on 20-25 metrics that actually matter—metrics that predict revenue, identify problems early, and drive action. They ignore the rest. This guide reveals the exact metrics that top-performing B2B SaaS companies track, why they matter, how to calculate them, and what targets to aim for.
Why Most Companies Track the Wrong Metrics
Vanity metrics look good but don't drive decisions. A metric matters only if it predicts future revenue, identifies problems early, drives specific actions, is measurable and reliable, and aligns with business goals.
- Vanity metrics to avoid: Total leads (without conversion), website traffic (without conversion), social followers, email open rates alone
- The 80/20 Rule: 20% of metrics drive 80% of insights
- Target: Track 20-25 key metrics, not 100+
- Test each metric: "What action does this drive?" If no clear action, don't track it
Pipeline Health Metrics
These metrics predict your future revenue. They're the leading indicators that tell you if you're on track before it's too late.
- Pipeline Coverage = Total Pipeline / Quota. Target: 3-5x. Below 3x: Generate more pipeline urgently
- Weighted Pipeline = Σ(Deal Value × Stage Probability). Target: 1.2-1.5x quota
- Pipeline Velocity = (Opportunities × Deal Size × Win Rate) / Sales Cycle. Track trend month-over-month
- Pipeline Generation Rate = New Opps × Average Deal Size. Should equal or exceed closed revenue
- Pipeline Age: Deals > 2x sales cycle are likely dead. Review weekly
- Stage Distribution: Uneven distribution indicates bottlenecks. Healthy: 40% Discovery, 30% Proposal, 20% Negotiation, 10% Closing
Conversion and Efficiency Metrics
These metrics identify where you're losing deals and where to focus improvement efforts.
- Lead-to-Opportunity Rate = (Opps / Leads) × 100%. Target: 10-20% for B2B SaaS. Track by source
- Win Rate = (Closed-Won / Total Closed) × 100%. Target: 20-30%. Analyze lost deals for patterns
- Sales Cycle Length = Average (Close Date - Opp Created). SMB 30-45 days, Mid-market 60-90, Enterprise 90-180
- Time in Stage: Identifies specific bottlenecks. Create playbooks to accelerate slow stages
- Lead Response Time = Average (First Contact - Lead Created). Target: < 5 minutes for inbound
Revenue Growth Metrics
These metrics track overall business performance and are key for executives and investors.
- MRR/ARR: Core SaaS metric. Track New MRR, Expansion MRR, Churned MRR, Net New MRR
- Revenue Growth Rate = ((Current - Previous) / Previous) × 100%. Early stage 100%+, Growth 50-100%, Mature 20-30%
- Average Deal Size: Should increase over time. 10-20% annual growth is healthy
- CAC = (Sales + Marketing Expenses) / New Customers. Target: Decreasing over time
- LTV = (Average Revenue × Gross Margin) / Churn Rate. Target: LTV:CAC > 3:1
- CAC Payback = CAC / (Monthly Revenue × Gross Margin). Target: < 12 months SMB, < 18 mid-market
Customer Success Metrics
These metrics predict churn and expansion—critical for sustainable growth.
- Net Revenue Retention = ((Starting MRR + Expansion - Churn) / Starting MRR) × 100%. Target: > 100%, ideally 110-130%
- Gross Revenue Retention = ((Starting MRR - Churn) / Starting MRR) × 100%. Target: > 90% SMB, > 95% mid-market, > 98% enterprise
- Churn Rate = (Customers Lost / Starting Customers) × 100%. Target: < 5% monthly SMB, < 2% mid-market
- Customer Health Score: Composite of usage (40%), engagement (30%), support (15%), payment (15%). Target: > 70% healthy
- Expansion Revenue Rate = (Expansion MRR / Starting MRR) × 100%. Target: 20-30% of growth
Building Your Metrics Dashboard
Create role-specific dashboards with the right metrics for each audience.
- Executive Dashboard (5-7 metrics): Revenue vs target, NRR, Pipeline coverage, Win rate, CAC payback, Churn, Growth rate
- Sales Leader Dashboard (10-12 metrics): Pipeline coverage, weighted pipeline, velocity, win rate, cycle length, deal size, quota attainment, response time
- Sales Manager Dashboard (8-10 metrics): Team quota attainment, pipeline by rep, win rate by rep, activities, response time, deals closing, at-risk deals
- Individual Rep Dashboard (5-6 metrics): Personal quota, pipeline value, deals closing, win rate, activities, upcoming tasks
- Good benchmarks: Routing < 60 sec, Response < 5 min, Conversion improvement > 30%, Lead leakage < 2%, Automation > 95%
Key Takeaway
Stop tracking vanity metrics. Focus on the 20-25 metrics that actually predict revenue, identify problems, and drive action. Organize by category: Pipeline Health, Conversion, Revenue Growth, Customer Success, Team Performance, Operational Efficiency. Set clear targets for every metric. Review and act weekly. The best revenue teams don't just track metrics—they use them to make decisions and drive growth.
