52 Weeks of FOS

Sales Metrics – Week #10 of The Financial Operating System®

April 7, 2025 by Calvin Wilder in Articles

As we dive into specific metrics, we’ll start with marketing and sales metrics as everything starts with a sale. These metrics are critical indicators of a business’s marketing and sales performance, providing insights into lead generation, customer acquisition, revenue generation, and pipeline management. Here’s a summary of key sales metrics discussed:

  1. Activity-Based Metrics:

    • Marketing Interactions: Number of touchpoints like emails, calls, or ads.
    • Website Visitors: Tracks digital engagement and potential lead generation.
    • Outbound Sales Calls and Meetings: Measures direct sales efforts.

  2. Pipeline Metrics:

    • Sales Pipeline Revenue: Total potential revenue from all qualified leads.
    • Sales Contracts Presented: Number and value of deals advanced to the proposal stage.
    • Sales Contracts Won: Number and value of signed agreements, providing the win rate.

  3. Customer Metrics:

    • New Customers: Tracks first-time buyers.
    • Revenue from New Customers: Annualized contract value from new clients.
    • Repeat Customers: Measures recurring purchases from existing clients.
    • Revenue from Repeat Customers: Revenue generated from ongoing or repeat engagements.

  4. Performance Indicators:

    • Total Customers: Number of active customers under contract or invoiced.
    • Percentage of Sales from New vs. Repeat Customers: Shows balance between customer acquisition and retention efforts.

  5. Revenue Metrics:

    • Contract Bookings: Total revenue value of signed deals (e.g., Total Contract Value (TCV) or Monthly Recurring Revenue (MRR)).
    • Revenue Growth Rate: Tracks changes in revenue over time to assess business momentum.
    • Business Line Revenue: Revenue contribution from specific products or services.

These metrics provide a comprehensive view of the sales cycle, highlight opportunities for improvement, and guide resource allocation for maximizing growth and efficiency. Tracking them enables data-driven decision-making.

Next Step:

Business owners can self-implement The Financial Operating System. Chapters are available to download at smartbooks.com/resources or you can buy the whole book from Amazon (the marketing firm version or the general business version).

If you would like assistance with implementation or would like to accelerate results for your business, please contact author Cal Wilder at cwilder@smartbooks.com or book a free consultation with our team directly using this calendar link.