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.
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: Can you trust your pipeline data?
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: Predictability of revenue. Critical for planning.
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 generated 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: Average discount applied to deals.
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)
Target: <5 business days
Billing Disputes
Definition: Percentage of invoices disputed by customers.
Formula:
Dispute Rate = Invoices disputed / Total invoices × 100
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: Also defined in Finance metrics. Same definition.
Collection Effectiveness Index (CEI)
Definition: How effective collections are at collecting receivables.
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
Targets:
- Current: >80%
- 31-60: <15%
- 61-90: <4%
- 90+: <1%
Bad Debt Rate
Definition: Percentage of revenue written off as uncollectable.
Formula:
Bad Debt Rate = Write-offs / Revenue × 100
Target: <1%
Note: Also defined in Finance metrics. Same definition.
Payment Method Distribution
Definition: Breakdown of payments by method.
Methods:
- Credit card
- ACH/Direct debit
- Wire transfer
- Check
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: Total revenue collected but not yet recognized.
Formula:
Deferred Revenue = Cumulative billings - Cumulative recognized revenue
What it tells you: Future revenue already paid for.
Unbilled Revenue
Definition: Revenue recognized but not yet invoiced.
Formula:
Unbilled Revenue = Recognized revenue - Billed revenue (where recognition > billing)
What it tells you: Revenue owed but not yet invoiced.
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 |
| Bad Debt Rate | Collections | Collection effectiveness |
| Deferred Revenue | Recognition | Future revenue liability |
| Auto-Renewal Rate | Renewals | Process automation |