{"slug":"strategy/business-strategy/72-revenue-metrics","title":"72 — Revenue Metrics","section":"strategy","sectionLabel":"Strategy","status":"unclassified","type":"document","path":"strategy/business-strategy/72-revenue-metrics.mdx","bytes":6520,"description":null,"updated":null,"source":"integratewise/Integratewise-docs-wiki","content":"\nStatus: CANONICAL · Commercial OS — **wins every metric-definition conflict**\nOwner: Founder (RevOps hat)\nLast verified: 2026-07-21\n\n---\n\n## Purpose\n\nThe company's revenue metric dictionary and dashboard spec: one definition per metric, one owner, one cadence. Marketing ([73](73-marketing-metrics.md)), sales ([74](74-sales-metrics.md)), and CS ([75](75-customer-success-metrics.md)) metrics roll up here; when definitions conflict, this file wins.\n\n**Target audience:** Founder, future finance/RevOps hire, board/investors.\n\n---\n\n## 1. The North Star & The Tree\n\n**North star: Approved Twin Actions per active seat per week (ATA/seat/wk).** Why: it's the one number that proves the category claim — humans and Twins _actually collaborating_ on governed work. Revenue follows it: activation predicts retention, retention carries NRR, NRR carries the model.\n\n```\nARR\n├── New ARR  ← pipeline × win rate × ACV       [74 Sales]\n├── Expansion ARR ← NRR vectors V1/V2/V3       [46 Expansion, 75 CS]\n└── Churned ARR ← GRR, health, renewal plays   [47 Renewal, 75 CS]\n        all three ← activation ← ATA/seat/wk ← onboarding [45]\n                       pipeline ← demand engines [73 Marketing]\n```\n\n## 2. Canonical Definitions (the dictionary)\n\n| Metric                | Definition (exact)                                                                                                                                                     | Target (2027 steady-state)             |\n| --------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------- |\n| **ARR**               | Annualized committed subscription revenue (excl. one-time add-ons [31 §3](../05-value-pricing/31-packaging-strategy.md)); design-partner discounts at _realized_ value | per [77 plan](77-annual-gtm-plan.md)   |\n| **New ARR**           | First-order-form ARR from net-new logos                                                                                                                                | —                                      |\n| **Expansion ARR**     | Net positive change in existing-customer ARR (seats + tiers + benches)                                                                                                 | ≥ 40% of gross new ARR by end-2027     |\n| **NRR**               | Cohort ARR now ÷ cohort ARR 12 mo ago, churn included, logo-constant                                                                                                   | ≥ 120%                                 |\n| **GRR**               | Same, expansions excluded                                                                                                                                              | ≥ 92%                                  |\n| **ACV**               | Total contract value ÷ years                                                                                                                                           | Land ~$10K · blended ~$22K             |\n| **CAC**               | Fully-loaded S&M cost ÷ new logos (founder time priced at market salary — no free-founder illusions)                                                                   | < $8K blended                          |\n| **CAC payback**       | CAC ÷ (ACV × gross margin ÷ 12)                                                                                                                                        | < 6 months                             |\n| **LTV/CAC**           | (ACV × GM × avg lifetime yrs) ÷ CAC                                                                                                                                    | ≥ 4x                                   |\n| **Gross margin**      | (Revenue − COGS: infra + AI inference + connector infra) ÷ revenue (FINANCIAL_MODEL §2)                                                                                | ≥ 97%                                  |\n| **Activated seat**    | ≥ 5 approved Twin actions **and** ≥ 4 workbench-first mornings in one week ([45 §3](../08-customer-success/45-onboarding-playbook.md))                                 | ≥ 70% of seats by day 30               |\n| **ATA/seat/wk**       | Approved Twin actions (memory + execution approvals) ÷ active seats, weekly                                                                                            | ≥ 8 at maturity (5 = activation floor) |\n| **Pipeline coverage** | Open qualified pipeline $ ÷ next-quarter new-ARR target                                                                                                                | ≥ 3x                                   |\n\n**Anti-vanity rules:** signups, page views, and connector counts never appear on the revenue dashboard · design-partner cohort reported separately from standard cohort (discounted ARR would flatter NRR) · every metric reported with its denominator visible.\n\n## 3. The Dashboard & Cadence\n\n**Weekly (founder, 30 min — the Friday ritual [37](../07-sales/37-sales-playbook.md)):** ATA/seat/wk trend · pipeline coverage · stage conversions vs. [36 §2] targets · activation of live onboardings.\n**Monthly:** full tree — ARR bridge (new/expansion/churn) · NRR/GRR cohorts · CAC & payback · health-classified renewal forecast ([47 §5](../08-customer-success/47-renewal-strategy.md)).\n**Quarterly (board-grade):** cohort curves · unit economics vs. FINANCIAL_MODEL assumptions (variance explained, model updated — the model is a living document) · phase-gate status ([50 §2](../09-gtm/50-gtm-strategy.md)).\n\n**Tooling honesty:** at our stage this is a spreadsheet + CRM reports, maintained ruthlessly. The discipline is the tool. (And per Customer Zero: our own revenue workbench, as soon as the product can carry it — [44 §1](../08-customer-success/44-customer-success-playbook.md).)\n\n**KPIs of the metrics system itself:** definition-drift incidents = 0 · dashboard shipped on cadence 100% · every board number traceable to this dictionary · forecast accuracy ±15% by mid-2027.\n\n---\n\n**Related:** [73 Marketing](73-marketing-metrics.md) · [74 Sales](74-sales-metrics.md) · [75 CS](75-customer-success-metrics.md) · [77 Annual Plan](77-annual-gtm-plan.md) · FINANCIAL_MODEL: `../../product/FINANCIAL_MODEL.md`\n"}