Key Sales Metrics To Look For

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In reviewing startups, here are the key metrics investors should look for:

Annual contract value -- the value the customer spends on the product in one year.

This needs to be a meaningful amount of money in order to grow a startup.

Customer lifetime value -- the total amount of money the customer spends on the product.

This indicates how well the product meets the customer's needs.

Sales pipeline -- the number and revenue value of sales prospects.

This shows ongoing demand for the product from new customers.

Conversion rate -- this shows how many leads turn into sales.

This needs to be a known figure so as to calculate how many leads to generate to meet a sales goal.

Sales team turnover -- this shows how long sales reps stay with a company.

This shows how many salespeople need to be recruited and trained.

Referrals -- shows how many leads come from partner channels.

This shows how many partners need to be recruited and trained.

Customer retention -- this shows how long customers use the product.

This determines how many new customers need to be recruited.

The goal of metrics is to define the current business model so it can be tuned to operate efficiently.

Look to see how well defined these metrics are for a potential startup investment.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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