Working with Unit Economics KPIs
The Unit Economics KPI scorecard provides a clear, actionable overview of the revenue and costs associated with acquiring and serving customers.
The scorecard consolidates key subscription metrics-including average contract value (ACV), growth efficiency (Quick Ratio), magic number, customer acquisition cost (CAC)-into a single, interactive dashboard.
Unit Economic KPI Scorecard Key Components
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Data sources - Subscriptions, contracts, and billing data.
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Visualization - KPI tiles (MRR or ARR per employee, CAC, LTV, Quick Ratio) and summary tables showing KPI values, variance, and percentage variance.
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Filters - Metric (ARR or MRR), customer, item, department, class, and location.
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Reporting periods - Select a period and a comparison period to analyze and compare results.
Key Terms and Definitions
The following tables list the KPI definitions and what each KPI reveals.
|
KPI |
Definition |
Purpose |
|---|---|---|
|
MRR / ARR per Employee |
Monthly or annual recurring revenue divided by the number of employees. |
Shows how efficiently your team generates recurring revenue. |
|
Growth Efficiency (Quick Ratio) |
Ratio of new and upsell revenue to lost revenue. |
Helps you see if your growth outpaces churn. |
|
Average Annualized Contract Value (AACV) |
Average yearly value of all active contracts. |
Reveals the typical annual revenue per customer contract. |
|
Average Revenue Per Account (ARPA) |
Total recurring revenue divided by the number of accounts. |
Shows how much revenue each customer brings in on average. |
|
Average Selling Price (ASP) by Deal Size |
Average deal value across all closed sales. |
Reveals trends in deal size and sales effectiveness. |
|
Average Selling Price (ASP) by Item |
Average selling price for each product or service. |
Shows which items command higher or lower prices. |
|
Magic Number |
Ratio of new recurring revenue to sales and marketing spend. |
Shows how quickly sales investments pay off. |
|
Customer Acquisition Cost (CAC) |
Total sales and marketing spend divided by new customers acquired. |
Reveals how much it costs to gain a customer. |
|
CAC Ratio |
Ratio of customer acquisition cost to gross margin from new customers. |
Shows if acquisition costs are sustainable. |
|
CAC Payback Period |
Time needed to recover customer acquisition cost from gross profit. |
Reveals how quickly investments are recouped. |
|
LTV/CAC Ratio |
Ratio of customer lifetime value to acquisition cost. |
Shows if customer relationships are profitable over time. |
The scorecard updates based on your selections and your access permissions.
To view the unit economics KPI scorecard:
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Go to Subscription Metrics > Unit Economics > View.
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From the Metric filter, select ARR or MRR.
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(Optional) Apply the applicable filters.
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Select the period and comparison period to view current and previous values for each KPI.
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Check the summary table for values, variance, and percentage variance.
For deeper analysis, explore other dashboard portlets such as roll forward reports and graphs.