Metrics Glossary

How to Calculate Dollar-Based Renewal Rate

GREGORY KESHIAN | Sep 18, 2018

Dollar-based renewal rate measures the percentage of renewal revenue won out of the total amount of revenue that was up for renewal in a period.  To measure dollar-based renewal rate, you take the total amount of renewal revenue won in a given period, and divide by the amount of revenue that expired in that same period.  

For example, if you had $140,000 of renewal bookings in Q2, and $150,000 of revenue that was up for renewal in Q2, then your dollar-based renewal rate would be $140,000 / $150,000 = 93%.

How to Calculate Deal-Based Renewal Rate on a Cohort Basis

GREGORY KESHIAN | Sep 18, 2018

Deal-based renewal rate, calculated on a cohort basis, measures the percentage of opportunities renewed out of the total number that were up for renewal in a period.  To measure deal-based renewal rate on a cohort basis, you take your total number of expiring subscriptions in a period, and measure how many of them got renewed, and divide the number of renewals by the number of expirations.  

How to Calculate Sales Velocity Per Opportunity

GREGORY KESHIAN | Sep 18, 2018

Sales velocity measures the expected output you would get from a sales rep or team in a given period of time.  Sales velocity on a per opportunity basis measures the expected output from a single opportunity or deal in a given period of time.  To calculate sales velocity per opportunity, you multiply your ASP and close rate, and then divide that by your sales cycle, measured over the same duration that you are measuring.