RevOps glossary
Clear definitions, formulas and worked examples for the metrics and terms revenue teams use every day.
Pipeline coverage ratioPipeline coverage is the value of open, qualified pipeline due to close in a period, divided by the new-business target for that period.Sales velocitySales velocity is the revenue a pipeline produces per day, calculated as the number of open qualified opportunities × win rate by count × average won deal size ÷ average sales cycle length in days.Win rateWin rate is the share of closed opportunities that were won: by count, won deals ÷ all closed deals; by value, the dollar value of won deals ÷ the dollar value of all closed deals.Weighted pipelineWeighted pipeline is the sum of each open opportunity's amount multiplied by the historical probability that deals in its stage are eventually won.Net revenue retention (NRR)Net revenue retention (NRR) is the recurring revenue at the end of a period from customers who were already customers at its start, including expansion and after contraction and churn, divided by those customers' recurring revenue at the start.Gross revenue retention (GRR)Gross revenue retention (GRR) is the share of starting recurring revenue from existing customers that remains at the end of a period after contraction and churn, excluding any expansion, so it can never exceed 100%.CAC payback periodCAC payback period is the number of months of gross profit it takes a new customer to repay the cost of acquiring them.Forecast accuracyForecast accuracy is 100% minus forecast error, where forecast error is the absolute difference between a saved forecast and the actual result, divided by the actual.Speed to leadSpeed to lead is the time from when a lead becomes sales-ready, such as when a demo request is submitted, to the first qualifying human touch.Stage exit criteriaStage exit criteria are the conditions, verified by evidence from the buyer rather than by seller activity, that an opportunity must meet before it can move to the next stage of the sales process.