Top KPIs for CROs at Growth-Stage PE-Backed Companies

As the simplest level, here are the fundamental KPIs every Chief Revenue Officer should focus on in Growth PE.

 

New Logo Sales  / New Customer Acquisition

Note: these should be measured per segment / per team / per territory, etc.

  • # of New Logo Opportunities in the Sales Pipeline
  • Win Rate
  • $ARPA
  • $ACV / $TCV
    • And ACL – average contract length
  • $MRR / $ARR
  • Sales Cycle
  • $ Bookings (sales bookings – New Business)
    • don’t confuse $ARR with $Bookings – $ARR can increase even if $Bookings don’t
  • Pipeline Inflow – by # Count
  • Sales Efficiency (Bessemer’s CAC Ratio, CAC Payback)

 

Expansion Sales

  • Expansion $MRR
  • Upsell
  • Cross-Sell
  • Add-On Sales
  • Expansion CAC Ratio

 

Customer Retention

  • Cohort Analyses & NDR – Net Dollar Retention (115%)
    • not Churn
  • Remaining Performance Obligation
  • Customer NPS

 

Overall Revenue and Customer Growth & Health

  • Net $MRR and Growth Trend
    • i.e. Net $MRR = Existing $MRR + ($ New Business + $ Expansion + $ Reactivation) – ($ Down-sell Contraction + $ Churned)
  • Net $ARR and Growth Trend
  • Customers – # and Growth
  • $ARPA