Understanding SaaS metrics separates prepared candidates from everyone else. These are the numbers that drive every conversation in tech sales.
Revenue Metrics
**ARR (Annual Recurring Revenue)** - The yearly value of subscriptions. A company with 100 customers paying $10K/year has $1M ARR.
**MRR (Monthly Recurring Revenue)** - ARR divided by 12. Used for more granular tracking.
**ACV (Annual Contract Value)** - The average ARR per customer. Higher ACV typically means longer sales cycles and fewer deals needed.
Customer Metrics
**CAC (Customer Acquisition Cost)** - Total sales and marketing spend divided by new customers acquired. Companies obsess over this number.
**LTV (Lifetime Value)** - Total revenue expected from a customer over their lifetime. Healthy SaaS companies have LTV:CAC ratios of 3:1 or higher.
**Churn Rate** - Percentage of customers who cancel. For SaaS, under 5% annual churn is good; under 2% is excellent.
Sales Metrics
**Quota** - Your sales target, typically measured in ARR or number of meetings booked.
**Quota Attainment** - Percentage of reps hitting quota. Ask this in interviews—it reveals a lot.
**Sales Cycle Length** - Time from first touch to closed deal. SMB: 14-30 days. Mid-market: 30-90 days. Enterprise: 90-365 days.
**Win Rate** - Percentage of opportunities that close. Varies widely by segment and company.
Why This Matters
When an interviewer asks "Why sales?" and you respond with fluent knowledge of these metrics, you demonstrate genuine interest and preparation.
When you ask "What's the average quota attainment on the team?" you show business acumen.
Learn these cold. They're the language of tech sales.