07DEFINITIONS

Every metric, defined once.

If a number matters, its math should be visible. Plain English, no hedging.

D.01

Pipeline coverage

The ratio of open pipeline value to the quota or target for the same period.

D.02

Net revenue retention (NRR)

Revenue from a cohort of customers today divided by that same cohort's revenue a year ago, including expansion, contraction, and churn.

D.03

Gross revenue retention (GRR)

Like NRR but excluding expansion: it measures pure retention.

D.04

Win rate

The share of closed opportunities that were won.

D.05

Pipeline velocity

How many dollars your pipeline produces per day.

D.06

Forecast categories

Buckets that express confidence in open deals: Pipeline, Best Case, Commit.

D.07

Ramp

The months a new rep needs to reach full productivity, expressed as a monthly percentage curve.

D.08

On-target earnings (OTE)

Total cash a rep earns at exactly 100% attainment: base salary plus variable at target.

D.09

Quota-to-OTE ratio

Annual quota divided by OTE.

D.10

ICP scoring

Scoring accounts against your ideal customer profile.

D.11

ARR bridge

The waterfall that reconciles one period's ARR to the next: starting ARR plus new business, expansion, and restarts, minus contraction and churn, equals ending ARR.

D.12

CAC payback

How many months it takes to recoup the cost of acquiring a customer: the point where cumulative gross profit from the customer equals what you spent to win them.

D.13

Magic number

Net new ARR in a quarter divided by the prior quarter's sales and marketing spend.

D.14

Rule of 40

Revenue growth rate plus free cash flow margin, in percentage points.

D.15

Burn multiple

Net cash burned divided by net new ARR added in the same period.

D.16

Cohort retention

Tracking each start-period group of customers separately over time instead of blending them.

D.17

Renewal risk score

A 0-100 weighted blend of engagement signals: usage trend, login recency, support load, NPS, and champion status.

D.18

Forecast accuracy

How close the called number lands to the closed number, per rep and per period.

D.19

Forecast bias

The direction of the miss, repeated.

D.20

MAPE

Mean absolute percentage error: the average size of the forecast miss regardless of direction.

D.21

Slippage

A deal's close date moving later.

D.22

Discount leakage

The gap between list price and what deals actually close at, summed across the book.

D.23

GTM tech spend ratio

Go-to-market tooling spend as a share of the sales and marketing budget.

D.24

Funnel conversion

The share of records that survive each stage transition, and cumulatively from first touch to closed won.

D.25

Connect rate

The share of outbound touches that reach a live human.

D.26

Meeting show rate

The share of booked meetings that actually happen.

D.27

Effective commission rate

Variable earnings divided by bookings: what a rep's incremental dollar of sales actually pays them.

D.28

SPIFF ROI

The return on a short-term incentive: incremental margin created minus the spiff's cost, over that cost.

D.29

Break-even lift

The behaviour increase a spiff must drive before it pays for itself, stated in units or as a percentage of the current baseline.

D.30

Annual recurring revenue (ARR)

The annualised value of all active recurring subscriptions at a point in time: the sum of every customer's ARR.

D.31

Net new ARR

The change in ARR over a period, combining everything gained (new customers, expansion, restarts) and everything lost (contraction, churn).

D.32

Gross new ARR

ARR from customers starting their first paid subscription in the period.

D.33

Expansion and contraction ARR

Revenue movement from customers who keep an active subscription while changing spend.

D.34

Churn ARR

ARR lost when a customer cancels their last remaining subscription.

D.35

Restart ARR

ARR from previously churned customers starting a new paid subscription within a defined window.

D.36

Average revenue per account (ARPA)

Average revenue each customer account contributes over a period.

D.37

Customer lifetime value (LTV)

The profit a customer relationship produces over its full duration: lifetime revenue less the recurring cost of serving them.

D.38

Customer acquisition cost (CAC)

Average cost of acquiring a new customer.

D.39

LTV:CAC ratio

Lifetime value over acquisition cost: the return on each dollar spent acquiring customers.

D.40

Logo retention

The share of customer accounts (logos) from a starting point that are still active, ignoring what they pay.

D.41

ARR multiple

Company valuation divided by ARR: how the market prices each recurring dollar.

D.42

Engagement ratio (DAU:MAU)

Daily active users over monthly active users: how much of your monthly audience shows up daily.