CHEAT SHEET - Drivetrain x lative

3 KPIs to track to improve revenue efficiency in FY24

Across startups and scaleups, growth continues to be weighted higher, and expected to be achieved in a capital-efficient fashion—meaning the cost structure driving your revenue growth has to be sustainable.  

Among the several dozens of metrics you can track, here are the three you should aim to be above the median benchmark for an efficient growth engine.

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Page one of the 3 key metrics for driving revenue efficiency cheat sheet. It shows a preview and the Q factor metric in particular

Track your course to profitability

Revenue isn't the only measure of a SaaS company's success. Revenue generation efficiency matters, equally.

While no two companies are the same, it's unproductive to list all possible the revenue metrics that Finance and RevOps teams must track across stages, business models, sales motions, etc.

This cheat sheet highlights the three metrics one should strive to be in the green band along with some helpful tips:

Q Factor: An ROI-based projection metric to set quotas to improve GTM efficiency. It simplifies sales quota management, ensures equitable compensation, and drives better resource allocation decisions.
Average Sales Productivity: A metric that measures the yield per rep per unit time. It can be used to pinpoint where productivity is rising, where it's falling, and what to do about it.
Average Sales Cost Efficiency: The ratio of selling costs to revenue generated per unit time. It can be used to benchmark relative cost efficiency across teams, product lines, regions or other business dimensions.

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