Key Performance Indicators (KPIs)

Company-Wide KPIs

These are the key metrics we track to understand overall company health.

Growth Metrics

Annual Recurring Revenue (ARR): Total recurring revenue annualized. Calculated as MRR × 12.

Customer Acquisition Cost (CAC): Cost associated with acquiring a new customer.

• Formula: Total Marketing and Sales Expenses / Number of New Customers Acquired

Customer Lifetime Value (LTV): Total revenue a customer is expected to generate throughout their relationship with Selora Homes.

• Formula: Average Revenue Per Customer / Churn Rate

LTV:CAC Ratio: Relationship between Customer Lifetime Value and Customer Acquisition Cost. Should be at least 3:1 for sustainable growth.

• Formula: LTV / CAC
• Target: 3:1 or higher

Customer Health

Customer Retention Rate: Percentage of customers you retain over a period of time.

• Formula: (Customers at End - New Customers) / Customers at Start × 100

Customer Churn Rate: Percentage of customers who cancel each period.

• Formula: 1 - Customer Retention Rate

Revenue Retention Rate: Percentage of revenue retained from existing customers, including expansions and downgrades.

• Formula: (Revenue at End - Revenue from Lost Customers) / Revenue at Start × 100

Net Promoter Score (NPS): Customer satisfaction and likelihood to recommend.

Customer Satisfaction (CSAT): Satisfaction with specific interactions.

Operational Metrics

System Uptime: Percentage of time services are available

Mean Time to Recovery (MTTR): Average time to recover from incidents

Support Response Time: Time to first response on support tickets

Support Resolution Time: Time to fully resolve support tickets

Department KPIs

Engineering

• Deployment Frequency: How often we deploy to production
• Change Failure Rate: Percentage of deployments causing incidents
• Code Coverage: Percentage of code covered by automated tests
• Technical Debt: Story points of technical debt backlog

Sales

• Pipeline Value: Total value of opportunities in sales pipeline
• Win Rate: Percentage of opportunities that close as wins
• Sales Cycle Length: Average days from first contact to close
• Annual Contract Value (ACV): Average annual value of new contracts

Customer Success

• Onboarding Time: Days from signup to first value achieved
• Adoption Rate: Percentage of features actively used by customers
• Expansion Revenue: Revenue from existing customer upgrades
• Customer Health Score: Composite score of engagement metrics

Marketing

• Website Traffic: Monthly unique visitors
• Lead Conversion Rate: Percentage of visitors who become leads
• Cost Per Lead (CPL): Marketing spend divided by leads generated
• Marketing Qualified Leads (MQLs): Leads meeting qualification criteria

Support

• First Response Time: Time until customer receives first response
• Resolution Time: Time until issue is fully resolved
• Customer Satisfaction: Rating on support interactions
• Ticket Volume: Number of support tickets per customer

How We Use KPIs

Weekly Reviews

Each department reviews their KPIs weekly to identify trends and issues early.

Monthly Business Reviews

Leadership reviews all KPIs monthly to understand company performance.

Quarterly Planning

KPIs inform our quarterly OKR setting and strategic planning.

Dashboard Access

All KPIs are available in real-time dashboards accessible to the entire team.