- metrics
- 31
- computable
- 30
- breakdowns
- 4
Revenue Operations / Order to Cash Metrics
Metrics for measuring the revenue lifecycle from quote to cash collection.
Pipeline Operations
Pipeline Hygiene Score
Definition: Quality assessment of pipeline data and process adherence across open opportunities.
Components:
- Opportunities with required fields complete
- Opportunities updated within SLA
- Opportunities with valid close dates
- Opportunities with accurate stage assignment
Formula:
Hygiene Score = (Complete opps + Updated opps + Valid dates + Accurate stages) / 4
Each component scored as percentage meeting criteria.
Target: >90%
What it tells you: How far you can trust the pipeline data your forecast is built on.
Forecast Accuracy
Definition: How closely forecasted revenue matched actual revenue.
Formula:
Forecast Accuracy = 1 - |Forecasted - Actual| / Actual
Benchmarks:
- Below 70%: Poor forecasting
- 70-85%: Average
- 85-95%: Good
- Above 95%: Excellent
What it tells you: How predictable revenue is, which sets how much weight plans can put on the forecast.
Commit Accuracy
Definition: Percentage of committed deals that close.
Formula:
Commit Accuracy = Deals closed from commit / Deals in commit × 100
Target: >80%
Stage Conversion Rates
Definition: Conversion rate between each pipeline stage.
Formula:
Stage Conversion = Opportunities advancing to next stage / Opportunities in stage × 100
Track for each stage transition.
What it tells you: Where deals get stuck or leak.
Quote-to-Order
Quote Volume
Definition: Number of quotes sent in a period.
Formula:
Quote Volume = Count of quotes created
Quote-to-Order Rate
Definition: Percentage of quotes that convert to orders.
Formula:
Quote-to-Order = Orders / Quotes × 100
Benchmarks:
- Below 20%: Low conversion
- 20-40%: Average
- 40-60%: Good
- Above 60%: Strong
Quote Cycle Time
Definition: Time from quote request to quote delivery.
Formula:
Quote Cycle Time = Median of (Quote sent date - Quote requested date)
Target: <24 hours for standard quotes
What it tells you: Speed of quote generation process.
Quote Accuracy
Definition: Percentage of quotes requiring no revision.
Formula:
Quote Accuracy = Quotes with no revision / Total quotes × 100
Target: >90%
Discount Rate
Definition: Discount off list price across quotes sent in the period, weighted by list price.
Formula:
Discount Rate = (List price - Sold price) / List price × 100
What it tells you: Pricing discipline and competitive pressure.
Order Processing
Order-to-Activation Time
Definition: Time from signed order to customer activation/provisioning.
Formula:
Order-to-Activation = Median of (Activation date - Order signed date)
What it tells you: How quickly customers get access after buying.
Order Processing Time
Definition: Time to process an order through internal systems.
Formula:
Processing Time = Median of (Order complete in system - Order received)
Target: Same day for standard orders.
Order Error Rate
Definition: Percentage of orders with processing errors.
Formula:
Order Error Rate = Orders with errors / Total orders × 100
Target: <2%
What it tells you: Process quality and system reliability.
Billing Operations
Billing Accuracy
Definition: Percentage of invoices generated correctly on first attempt.
Formula:
Billing Accuracy = Invoices without correction / Total invoices × 100
Target: >98%
What it tells you: Billing process reliability.
Invoice Cycle Time
Definition: Time from billing event to invoice delivery.
Formula:
Invoice Cycle Time = Median of (Invoice sent - Billing trigger date)
Measured in calendar days. A business-day count reads lower when the interval spans a weekend or holiday, so state which one you report.
Target: <7 calendar days (about 5 business days)
Billing Disputes
Definition: Percentage of invoices disputed by customers.
Formula:
Dispute Rate = Invoices disputed / Total invoices × 100
Billing Disputes are reported per payment status as of period end.
Target: <1%
What it tells you: Invoice accuracy and customer alignment.
Credit Memo Rate
Definition: Percentage of invoices requiring credit memos.
Formula:
Credit Memo Rate = Credit memos issued / Total invoices × 100
Target: <2%
What it tells you: Billing errors and adjustments.
Collections
Days Sales Outstanding (DSO)
Definition: Average days to collect payment after invoicing.
Formula:
DSO = (Accounts Receivable / Revenue) × Days in period
Benchmarks:
- Below 30 days: Excellent
- 30-45 days: Good
- 45-60 days: Average
- Above 60 days: Collection issues
Note: Finance metrics links here. This is the canonical definition.
Collection Effectiveness Index (CEI)
Definition: The share of collectible receivables actually collected in the period. Billings stand in for credit sales. Current AR is receivables aged 30 days or less.
Formula:
CEI = (Beginning AR + Credit sales - Ending AR) / (Beginning AR + Credit sales - Ending current AR) × 100
Benchmarks:
- Below 70%: Poor
- 70-80%: Average
- Above 80%: Good
Aging Buckets
Definition: Distribution of receivables by age.
Buckets:
- Current (0-30 days)
- 31-60 days
- 61-90 days
- 90+ days
Formula:
Bucket % = AR in bucket / Total AR × 100
Aging Buckets is reported per bucket: one share for each age bucket, each over the whole outstanding balance, so the shares sum to 100%. Age is the days from invoice date to the period end. Bounds are inclusive, so the 90+ bucket starts at 91 days.
Targets:
- Current: >80%
- 31-60: <15%
- 61-90: <4%
- 90+: <1%
Accounts Receivable Balance
Definition: Total amount outstanding on open invoices at period end.
Formula:
AR Balance = Sum of outstanding amounts on open invoices at period end
Population: The invoice snapshot at period end, invoices with an outstanding amount above zero.
Accounts Receivable Balance is reported per payment status (unpaid, partial and so on) as of period end.
Note: AR Balance should reconcile to balance_sheet.accounts_receivable, which DSO reads. Differences are unapplied cash or write-offs.
What it tells you: How much billed cash is still to be collected. The payment status breakdown shows how much of it sits in partly paid or written-off invoices.
Bad Debt Rate
See Finance for the canonical definition: bad debt expense over GAAP revenue.
Payment Method Distribution
Definition: Breakdown of payments by method.
Formula:
Method share = Invoiced amount in period paid by the method / Invoiced amount in period with a known method
Methods:
- Credit card
- ACH/Direct debit
- Wire transfer
- Check
Payment Method Distribution is reported per method: one share for each method, with the shares summing to 100%.
What it tells you: Collection risk and processing costs by method.
Revenue Recognition
Recognized vs Billed
Definition: Ratio of recognized revenue to billed revenue.
Formula:
Recognized/Billed = Recognized revenue / Billed revenue
What it tells you: Revenue recognition timing vs cash collection.
Deferred Revenue Balance
Definition: Revenue billed but not yet recognized. A balance of cumulative billings less cumulative recognized revenue, independent of when cash is received.
Formula:
Deferred Revenue = Cumulative billings - Cumulative recognized revenue
What it tells you: Revenue already billed that the company still owes in service.
Unbilled Revenue
Definition: Revenue recognized but not yet invoiced.
Formula:
Unbilled Revenue = Recognized revenue - Billed revenue (where recognition > billing)
What it tells you: Service already delivered that billing has to catch up on.
Revenue Recognition Accuracy
Definition: Percentage of revenue correctly recognized per ASC 606.
Formula:
Recognition Accuracy = Revenue recognized correctly / Total revenue × 100
Target: 100%
Renewal Operations
Renewal Notification Rate
Definition: Percentage of renewals where customer was notified on time.
Formula:
Notification Rate = Renewals notified on time / Total renewals × 100
Target: 100%
Auto-Renewal Rate
Definition: Percentage of renewals processed automatically.
Formula:
Auto-Renewal Rate = Auto-renewed contracts / Total renewals × 100
What it tells you: Renewal process efficiency.
Renewal Processing Time
Definition: Time to process a renewal from trigger to completion.
Formula:
Processing Time = Median of (Renewal complete - Renewal trigger)
Systems & Data Quality
System Sync Accuracy
Definition: Data consistency across RevOps systems (CRM, billing, ERP).
Formula:
Sync Accuracy = Records matching across systems / Total records × 100
Target: >99%
Data Completeness
Definition: Percentage of required fields populated in RevOps systems.
Formula:
Completeness = Fields populated / Required fields × 100
Target: >95%
Summary Table
| Metric | Type | Primary Indicator Of |
|---|---|---|
| Forecast Accuracy | Pipeline Ops | Revenue predictability |
| Quote-to-Order Rate | Quote-to-Order | Sales process efficiency |
| Billing Accuracy | Billing | Invoice reliability |
| DSO | Collections | Cash collection speed |
| AR Balance | Collections | Cash still to collect |
| Bad Debt Rate | Collections | Collection effectiveness |
| Deferred Revenue | Recognition | Future revenue liability |
| Auto-Renewal Rate | Renewals | Process automation |
Related Metrics
These metrics are connected in the GASP relationship graph.
Downstream: what metrics on this page drive
- Forecast Accuracy drives Pipeline Coverage (Sales)
- Days Sales Outstanding reduces Free Cash Flow (Finance)