Purpose of this page

This page provides high-level reference definitions for key go-to-market (GTM) metrics used across Sales, Marketing, and Revenue Operations.

These definitions are intentionally descriptive rather than prescriptive.
Exact calculations, thresholds, and interpretations should be adapted to the company’s GTM motion, maturity, and operating model.

Tier 1 — Executive Outcomes

Revenue (ARR / Bookings)

Represents recognized or contracted revenue over a defined period.
Used to assess overall business performance and growth.

Typically reviewed at an executive and board level.

Pipeline Coverage Ratio

The ratio between active pipeline value and revenue targets for a given period.

Indicates whether sufficient demand exists to support future revenue goals.
Best interpreted alongside pipeline quality and stage distribution.

Net Revenue Retention (NRR)

Measures revenue retained and expanded from existing customers over time, including upsells, downsells, and churn.

Used to assess the durability and quality of growth.

Tier 2 — Sales & Marketing Drivers

Sales Representative Performance

A composite view of individual contributor effectiveness, often including quota attainment, deal quality, and execution consistency.

Used to inform capacity planning, enablement, and territory design.

Sales Development (SDR) Performance

Reflects the effectiveness of early-stage demand qualification and opportunity creation.

Often assessed through opportunity acceptance, meeting quality, and conversion into active pipeline.

Channel Contribution to Pipeline

Represents the share of pipeline creation attributable to different acquisition channels (e.g. inbound, outbound, partners).

Used to understand channel mix and inform investment decisions — not as a standalone performance score.

Tier 3 — GTM Health & Efficiency

Deal Velocity & Stage Aging

Combines overall time-to-close with time spent in individual pipeline stages.

Used to identify friction points, stalled deals, and structural inefficiencies in the sales process.

Critical Stage Conversion Signals

Focuses on a small set of stage-to-stage transitions that materially influence revenue outcomes.

Which transitions are considered “critical” depends on the company’s GTM motion, deal complexity, and sales process design.

Pipeline Slippage Rate

Measures the proportion of deals that move out of their originally forecasted close period.

Used as an indicator of pipeline quality, forecasting discipline, and deal execution risk.

Final note

These metrics are most effective when:

  • Reviewed at the appropriate cadence
  • Interpreted in context (territory, segment, deal size)
  • Used to inform decisions, not as static scorecards

Not all metrics are relevant at all times. Focus should shift based on business priorities and growth stage.