Metrics Glossary

How to Calculate Cohort-Based Sales Cycle

GREGORY KESHIAN | Sep 18, 2018

Cohort-based sales cycle measures the average amount of time between when an opportunity or deal is created, and when it is closed won, tracked by the created date of the opportunity.  To calculate cohort-based sales cycle, you first isolate all the deals that you won that were created in a particular period. Then, for each one, you track the number of days between when it was created and when it was closed.  You sum up all those days from all the opps, and then divide by the number of opps won.

How to Calculate Sales Cycle

GREGORY KESHIAN | Sep 18, 2018

Sales cycle measures the average amount of time between when an opportunity or deal is created, and when it is closed won.  To calculate sales cycle, you first isolate all the deals that you won in a period. Then, for each one, you track the number of days between when it was created and when it was closed.  You sum up all those days from all the opps, and then divide by the number of opps won.

How to Calculate Cohort-Based Lead Conversion Rate

GREGORY KESHIAN | Sep 18, 2018

Cohort-based lead conversion rate measures the percentage of your leads that end up converting to opportunities, of the leads created in a certain period.  To calculate lead conversion rate, you take the number of leads created in a period, and divide that into the number of those same leads that were converted to opps.

For example, if you had 100 leads that were created in March, and of those 100 leads, 12 converted to opportunities, then your cohort-based lead conversion rate would be 12 / 100 = 12%.  

How to Calculate Lead Conversion Rate

GREGORY KESHIAN | Sep 18, 2018

Lead conversion rate measures the percentage of your leads that end up converting to opportunities.  To calculate lead conversion rate, you take the number of leads converted to opportunities in a period, and divide that by the number of leads created in that period.

For example, if you had 100 leads that were created in March, and you had 18 leads converted to opportunities in March, then your lead conversion rate would be 18 / 100 = 18%.

How to Calculate Opportunity Push Rate

GREGORY KESHIAN | Sep 18, 2018

Opportunity push rate measures the percentage of your opportunities that are set to close in a period that end up pushing out to the next period.  To calculate push rate, you first measure the number of opportunities that are open, and set to close in a timeframe as of the beginning of that timeframe.  Then, once the timeframe is over, you track how many of those are still open but set to close in a later period.

How to Calculate Cohort-Based Close Rate

GREGORY KESHIAN | Sep 18, 2018

A cohort-based close rate measures how many deals you won, divided by the total number of opps created.  To calculate a cohort-based close rate, you take the number of closed won deals that were created in a particular time period and divide by the total number of opportunities you created in that period.

For example, if you created 10 opps in September, and have won 6 of them, then your cohort-based close rate from September would be 6 / 10 = 60%.

How to Calculate Close Rate (Closed Funnel)

GREGORY KESHIAN | Sep 18, 2018

A closed funnel close rate measures how many deals you won, divided by the total number of deals closed, won or lost.  To calculate a closed funnel close rate, you take the number of closed won deals in a particular time period and divide by the total number of deals won plus lost with a close date in that same period.

For example, if you won 5 deals in September, and lost 10 deals in September, then your closed funnel close rate in September would be 5 / (5 + 10) = 33.3%.

How to Calculate Cohort-Based ASP

GREGORY KESHIAN | Sep 18, 2018

ASP stands for Average Selling Price.  To measure cohort-based ASP, you take your total amount of revenue or bookings won from a set of opportunities you created in a specific period, and divide by the number of deals you closed, that were created in that same period.  For example, if you won $50,000 of revenue from the opps you created in March, and closed 5 deals from the opps you created in March, then your cohort-based ASP for March would be $50,000 / 5 = $10,000.