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 such as average contract value (ACV), growth efficiency (Quick Ratio), magic number, customer acquisition cost (CAC) into a single, interactive dashboard.
Unit Economics KPI Scorecard Key Components
The unit economics KPI scorecard includes the following key components:
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Data sources - Subscriptions, contracts, and billing data from NetSuite.
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Visualization - KPI tiles (MRR or ARR per employee, CAC, LTV, growth efficiency) 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 filters to refine your results.
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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.