Three Key Revenue Metrics to Track in 2024

“If you don’t take a holistic view, you only focus on your sliver of the problem. I can promise you that there is almost always something up the chain, that if you solve that, it can make a big difference.

In our ever-evolving business landscape, it’s become abundantly clear that we can’t just rely on intuition; we need data-driven insights to truly thrive and make change.

Instead of telling you that you need more data, I want to help you narrow your focus in 2024 so you’re not overloaded with metrics that aren’t actionable or won’t move the needle for your business. The three key revenue metrics I’m going to break down are the three things you should be focusing on to improve the health of your overall business and revenue. 

The second question I’ll answer after we’ve defined your top metrics for 2024 is, “Now what?” The great thing about these top three revenue metrics, again, is they will be actionable. But you have to take a holistic view and remove the silos between your revenue teams: Marketing, Sales, and Customer Success. But we’ll get to that. First, let’s start with the three key revenue metrics that will significantly influence your growth this year:

1. Sales Efficiency (Sales Cycles) – more deals closed in less time.
2. Conversion Rates – a higher % of leads converted into business instead of focusing on more leads.
3. Customer Churn – more customers renewing. You can’t grow on new business alone.

Recap: Data-Driven Revenue Decisions: The Most Important Metrics for Your Business in 2024

Skip ahead to:

• 2:18 – I can’t stress enough the importance of tracking the right metrics. Today, I will cover the three most important ones to track.
• 3:00 – The first is sales efficiency, focusing on identifying bottlenecks in the sales process. It’s all about understanding where things might be taking longer than they should.
• 3:56 – The second is conversion rates, which is closely tied to sales efficiency. It’s essential to pinpoint where deals might be getting stuck or unqualified.
• 4:30 – The third metric is customer renewals and churn, which I also like to think of as expansion.
• 5:25 – If you don’t know these numbers, it’s really difficult to make change.
• 6:10 – RevOps is crucial to see the entire value chain, and problems often arise when each revenue team (marketing, sales, CS) views things in isolation.
• 7:33 – If you don’t take a holistic view, you’re only focusing on your sliver of the problem, and I can promise you that there is almost always something up the chain that, if you solve that, it can make a big difference.
• 9:45 – RevOps is instrumental in addressing churn by looking throughout the funnel. The main challenge is often the misalignment of expectations set by the Sales team, and churn cannot only be solved by working with Customer Success.
• 11:36 – One of the most crucial points I wanted to make was about the importance of having someone responsible for the holistic journey in business for 2024. Without this, businesses risk wasting time and energy on the wrong problems.
• 14:50 – Every sales leader, you need to know this for your team: How efficient are you at moving people through the process holistically; conversion rates/what percent of people are moving; and if you deal with churn, what are the leading indicators of churn and how can you reduce those.

3 Key Revenue Metrics You Should Care About

1. INCREASED SALES EFFICIENCY

The first key revenue metric is sales efficiency, which is all about time. At what stage are deals going long? And at what stage are deals going long for individual reps compared to the team? Knowing both can help you create targeted training for moving deals from step A to step B or B to C. 

Why it matters:

• Decreasing the time to close means more deals closed each month and quarter, increasing your annual revenue.
• Efficient sales processes can be scaled, leading to even more growth.

Key indicators:

• Shorter sales cycles – broken down by stage and by rep.

2. IMPROVED CONVERSION RATES

The second key revenue metric is very closely tied to the first – conversion rates. At what stage do deals most often get stuck? At what stage do conversion rates drop off? Maybe too many unqualified people are moving to later stages. Maybe you’re losing too many people at meeting three. 

Sales efficiency looks at how long it takes people to get to the next step; conversion rates calculate how many people are getting to the next step.

Why it matters:

• Understand and optimize the customer journey and experience.
• Increase Closed/Won from the same number of leads.

Key indicators:

• Funnel analysis: Identify and address potential leaks – by stage and by rep.

3. REDUCED CUSTOMER CHURN

Lastly is customer renewals and churn, which I also like to look at with expansion. For this one, obviously, customers either renew or they don’t, so what you want to track is leading indicators of churn, such as power usage and adoption if your SaaS company. 

Why it matters:

• Retained customers are often more profitable than new ones.
• Ensures a predictable and steady revenue stream.

Key indicators:

• Churn rate analysis: Monthly or annual percentage of customers lost.
• Post-sale customer journey analysis: Identify points of dissatisfaction or disengagement.

Related Content: Driving Revenue in 2024: Embracing RevOps & End-to-End Visibility to Maximize Performance

How to Improve These 3 Key Revenue Metrics with RevOps

Having a Revenue Operations team at your back will be crucial to see the entire value chain and customer experience. Most problems arise when each revenue team in an organization looks at things in isolation. 

If you don’t take a holistic view, you’ll only ever focus on a sliver of the problem, and I can promise you that there is almost always something up the chain that’s affecting later-stage deals or customer churn that needs to be solved. And organizations won’t be able to do it unless they have someone looking at the whole picture. 

RevOps is a strategic approach that aligns sales, marketing, and customer service operations to maximize revenue.

FOR INCREASED SALES EFFICIENCY

RevOps Role: Facilitate regular communication between these teams to refine lead qualification and sales processes.

• Sales: Prioritize high-quality leads based on insights from marketing campaigns and customer success feedback.
• Marketing: Collaborate with sales to understand which lead sources and campaigns yield the fastest sales cycles.
• Customer Success: Share insights on what features or benefits resonate most with customers to help sales position effectively.

FOR IMPROVED CONVERSION RATES

RevOps Role: Ensure that tools and platforms are integrated, providing a unified view of the customer, thus allowing for more personalized and effective conversion strategies.

• Sales: Use feedback from marketing on lead quality to tailor sales pitches and target high-conversion segments.
• Marketing: Develop campaigns based on feedback from sales and customer success about what appeals most to leads and customers.
• Customer Success: Guide potential upsells or cross-sells based on customer feedback and usage patterns.

FOR REDUCED CUSTOMER CHURN

RevOps Role: Implement systems to track and analyze customer health scores, ensuring all teams are informed and can proactively address potential churn risks.

• Sales: Set clear expectations during the sales process to ensure customer satisfaction and reduce the potential for churn.
• Marketing: Use insights from customer success to create content that educates and engages current customers, reinforcing their decision to buy.
• Customer Success: Collaborate with sales to identify potential churn risks early in the customer journey and develop strategies to mitigate them.

Most Important Thing You Can Do to Prepare for 2024

One of the most crucial points I want to leave you with is the importance of having someone responsible for the holistic journey of your business in 2024. Without this, you risk wasting time and energy on the wrong problems. 

Whether you build your own team or hire a Revenue Operations Consultancy like Skaled, focusing on these three key revenue metrics and taking a holistic approach to improving them is the only way to grow – fast and efficiently.