# 📊 Sales Metrics & KPI Framework

**PROPRIETARY & CONFIDENTIAL**

---

## Overview

**What gets measured gets managed.**

This document defines the key performance indicators (KPIs) for BlackRoad OS sales reps, teams, and the organization.

---

## Individual Rep Metrics

### 1. Quota Attainment

**Definition:** Percentage of assigned quota achieved

**Formula:**
```
Quota Attainment = (Actual Revenue / Quota) × 100%
```

**Targets:**
- **>100%** = Exceeds expectations (full bonus)
- **80-100%** = Meets expectations (prorated bonus)
- **<80%** = Below expectations (performance improvement plan)

**Frequency:** Measured quarterly and annually

**Example:**
- Q1 Quota: $250K
- Q1 Closed: $280K
- **Quota Attainment: 112%** ✅

---

### 2. Win Rate

**Definition:** Percentage of qualified opportunities that close

**Formula:**
```
Win Rate = (Closed-Won Deals / Total Qualified Opportunities) × 100%
```

**Targets:**
- **>40%** = Excellent (strong qualification and value selling)
- **30-40%** = Good
- **<30%** = Poor (likely over-qualifying or weak positioning)

**Frequency:** Measured monthly

**Example:**
- Q1 Qualified Opps: 20
- Q1 Closed-Won: 9
- **Win Rate: 45%** ✅

**Note:** Only count "qualified" opportunities (passed BANT++ criteria). Don't dilute win rate with junk leads.

---

### 3. Average Contract Value (ACV)

**Definition:** Average annual contract value per closed deal

**Formula:**
```
ACV = Total Annual Contract Value / Number of Deals
```

**Targets:**
- **SMB Rep:** $50K+ ACV
- **Mid-Market Rep:** $150K+ ACV
- **Enterprise Rep:** $500K+ ACV

**Frequency:** Measured quarterly

**Example:**
- Q1 Deals: 5
- Total ACV: $400K
- **Average ACV: $80K** ✅

---

### 4. Sales Cycle Length

**Definition:** Average number of days from first contact to close

**Formula:**
```
Sales Cycle = Total Days from First Contact to Close / Number of Deals
```

**Targets:**
- **SMB:** <60 days
- **Mid-Market:** <120 days
- **Enterprise:** <180 days

**Frequency:** Measured quarterly

**Example:**
- Deal 1: 45 days
- Deal 2: 68 days
- Deal 3: 52 days
- **Average Sales Cycle: 55 days** ✅

**Why It Matters:** Shorter cycles = faster revenue recognition and higher rep productivity

---

### 5. Pipeline Coverage

**Definition:** Ratio of pipeline value to quota

**Formula:**
```
Pipeline Coverage = Total Pipeline Value / Remaining Quota
```

**Targets:**
- **3x coverage** = Healthy (accounts for win rate and slippage)
- **2x coverage** = At-risk (need to generate more pipeline)
- **<2x coverage** = Critical (unlikely to hit quota)

**Frequency:** Measured weekly

**Example:**
- Q2 Quota: $250K
- Q2 Closed YTD: $80K
- Remaining Quota: $170K
- Current Pipeline: $510K
- **Pipeline Coverage: 3x** ✅

---

### 6. Activity Metrics

**Definition:** Leading indicators of pipeline generation

| Activity | Target (per day) | Target (per week) |
|----------|------------------|-------------------|
| **Outreach Touches** | 30-50 | 150-250 |
| **Discovery Calls** | 1-2 | 5-10 |
| **Demos Delivered** | 0.5-1 | 3-5 |
| **Proposals Sent** | 0.2-0.5 | 1-2 |

**Frequency:** Measured daily/weekly

**Why It Matters:** Activity drives pipeline. Low activity = low pipeline = low revenue.

---

## Team Metrics

### 7. Net Revenue Retention (NRR)

**Definition:** Revenue retained + expanded from existing customers

**Formula:**
```
NRR = ((Starting ARR + Expansion - Churn) / Starting ARR) × 100%
```

**Targets:**
- **>120%** = Exceptional (strong product-market fit and expansion)
- **100-120%** = Good (retaining and growing customers)
- **<100%** = Churn problem (customers not seeing value)

**Frequency:** Measured annually

**Example:**
- Starting ARR (Jan 1): $5M
- Expansion (upsells): $1.2M
- Churn (lost customers): $300K
- Ending ARR (Dec 31): $5.9M
- **NRR: 118%** ✅

---

### 8. Customer Acquisition Cost (CAC)

**Definition:** Total cost to acquire a new customer

**Formula:**
```
CAC = (Sales + Marketing Expenses) / Number of New Customers
```

**Target:** **<12 months payback** (CAC should be recovered within 1 year)

**Frequency:** Measured quarterly

**Example:**
- Q1 Sales + Marketing Spend: $500K
- Q1 New Customers: 20
- **CAC: $25K per customer**
- Average ACV: $60K
- **Payback Period: 5 months** ✅

---

### 9. CAC Ratio (Magic Number)

**Definition:** Efficiency of sales and marketing spend

**Formula:**
```
CAC Ratio = (New ARR × Gross Margin %) / (Sales + Marketing Spend)
```

**Targets:**
- **>1.0** = Efficient (invest more in sales/marketing)
- **0.5-1.0** = Acceptable
- **<0.5** = Inefficient (need to improve conversion or reduce spend)

**Frequency:** Measured quarterly

**Example:**
- New ARR added in Q1: $800K
- Gross Margin: 80%
- Sales + Marketing Spend: $500K
- **CAC Ratio: ($800K × 80%) / $500K = 1.28** ✅ (invest more!)

---

### 10. Win Rate by Source

**Definition:** Win rate segmented by lead source

**Why It Matters:** Identifies highest-ROI channels

**Example:**

| Lead Source | Opps | Wins | Win Rate |
|-------------|------|------|----------|
| **Inbound (website)** | 30 | 15 | **50%** ✅ |
| **Outbound (cold)** | 40 | 12 | **30%** |
| **Referral** | 10 | 7 | **70%** ✅ |
| **Events** | 15 | 5 | **33%** |

**Action:** Double down on inbound and referrals (highest win rate).

---

## Operational Metrics

### 11. Time to First Value

**Definition:** Days from contract signing to customer achieving first milestone

**Target:** **<30 days** (fast onboarding = happy customers = low churn)

**Frequency:** Measured per customer

---

### 12. Proposal-to-Close Rate

**Definition:** Percentage of proposals that result in closed deals

**Formula:**
```
Proposal-to-Close = (Closed-Won / Proposals Sent) × 100%
```

**Target:** **>50%** (if lower, proposals aren't well-qualified)

---

### 13. Demo-to-Close Rate

**Definition:** Percentage of demos that result in closed deals

**Formula:**
```
Demo-to-Close = (Closed-Won / Demos Delivered) × 100%
```

**Target:** **>30%**

---

## Forecasting Metrics

### 14. Weighted Pipeline

**Definition:** Pipeline value adjusted by stage probability

**Formula:**
```
Weighted Pipeline = Σ (Deal Value × Stage Probability)
```

**Stage Probabilities:**
- Qualify: 10%
- Discover: 25%
- Demo: 40%
- Proposal: 60%
- Negotiation: 80%
- Verbal Commit: 90%

**Example:**

| Deal | Value | Stage | Probability | Weighted Value |
|------|-------|-------|-------------|----------------|
| Acme Corp | $100K | Demo | 40% | $40K |
| TechCo | $250K | Proposal | 60% | $150K |
| FinServ Inc | $500K | Negotiation | 80% | $400K |

**Total Weighted Pipeline: $590K**

---

### 15. Forecast Accuracy

**Definition:** How accurate are your forecasts?

**Formula:**
```
Forecast Accuracy = (Actual Revenue / Forecasted Revenue) × 100%
```

**Target:** **90-110%** (within 10% of forecast)

**Why It Matters:** Accurate forecasts enable better planning (hiring, product, finance).

---

## Dashboard Example

**Sales Rep Weekly Dashboard:**

| Metric | This Week | Last Week | Target | Status |
|--------|-----------|-----------|--------|--------|
| **Pipeline Coverage** | 3.2x | 2.8x | 3x | ✅ |
| **Outreach Touches** | 180 | 160 | 150-250 | ✅ |
| **Discovery Calls** | 7 | 5 | 5-10 | ✅ |
| **Demos Delivered** | 4 | 3 | 3-5 | ✅ |
| **Proposals Sent** | 2 | 1 | 1-2 | ✅ |
| **Deals Closed** | 1 ($75K) | 0 | - | ✅ |

---

**Sales Team Monthly Dashboard:**

| Metric | This Month | Last Month | Target | Status |
|--------|------------|------------|--------|--------|
| **Revenue** | $620K | $550K | $600K | ✅ |
| **New Customers** | 12 | 10 | 10 | ✅ |
| **Average ACV** | $52K | $55K | $50K | ✅ |
| **Win Rate** | 42% | 38% | 40% | ✅ |
| **Sales Cycle** | 58 days | 65 days | <60 days | ✅ |
| **CAC** | $22K | $25K | <$30K | ✅ |

---

## How to Use These Metrics

### For Individual Reps:

**Daily:**
- Track activity metrics (outreach, calls, demos)
- Update CRM with all activities

**Weekly:**
- Review pipeline coverage (do you have 3x quota?)
- Identify at-risk deals and create action plans

**Monthly:**
- Review quota attainment (on track?)
- Analyze win/loss reasons (what's working?)

**Quarterly:**
- Assess ACV, win rate, sales cycle
- Set goals for next quarter

---

### For Sales Leaders:

**Weekly:**
- Review team pipeline and forecast
- Identify reps needing coaching
- Spot trends (win rate dropping? Sales cycle lengthening?)

**Monthly:**
- Review team attainment and revenue
- Analyze CAC, NRR, and efficiency metrics
- Adjust hiring, comp, or strategy as needed

**Quarterly:**
- Board-level reporting (revenue, growth, efficiency)
- Strategic planning (new markets? New products?)

---

## Red Flags to Watch

🚩 **Pipeline Coverage <2x**
- **Action:** Increase outreach activity, run marketing campaigns

🚩 **Win Rate <30%**
- **Action:** Improve qualification, refine value prop, provide coaching

🚩 **Sales Cycle >Target +50%**
- **Action:** Multi-thread deals, improve urgency, shorten proposal times

🚩 **CAC Payback >18 months**
- **Action:** Increase ACV, reduce sales cycle, improve win rate

🚩 **NRR <100%**
- **Action:** Improve onboarding, fix product gaps, proactive CS outreach

---

## Tools for Metrics Tracking

**Recommended Stack:**
- **CRM:** HubSpot (pipeline, activity tracking)
- **Analytics:** Tableau, Looker, or Metabase (dashboards)
- **Call Recording:** Gong or Chorus (win/loss analysis)
- **Forecasting:** Clari or Avoma

---

## Compensation Alignment

Metrics should tie to compensation:

| Metric | % of Comp |
|--------|-----------|
| **Quota Attainment** | 70% (base salary + variable) |
| **New Logo Acquisition** | 15% (bonus for new customers) |
| **NRR / Expansion** | 10% (reward retention and growth) |
| **Activity / Leading Indicators** | 5% (ensure consistent effort) |

**Example Comp Plan:**
- **Base Salary:** $100K
- **Variable (at 100% attainment):** $100K
- **Total OTE (On-Target Earnings):** $200K
- **Top Performer (120% attainment):** $240K+

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## Final Thoughts

**Metrics are a means, not an end.**

The goal is not to "hit numbers." The goal is to **build a predictable, scalable sales engine** that creates value for customers and the business.

Use metrics to:
- ✅ Identify what's working (double down)
- ✅ Spot problems early (course-correct)
- ✅ Reward high performers (comp alignment)
- ✅ Coach and develop reps (data-driven feedback)

**Metrics tell the story. Execution writes the ending.**

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**Version:** 1.0.0
**Last Updated:** January 4, 2026
**Owner:** Joaquin, Sales Master

*Measure what matters. Manage what you measure. Win.*