Financial Metrics and KPIs

9 out of 10 CEOs are tracking the wrong metrics. (I learned this the hard way.) So many are flying blind. Making gut decisions. Wondering why growth feels so hard. But these 18 KPIs change everything. Here's what every CEO should be watching: REVENUE & PROFITABILITY ↳ Revenue Growth Rate shows if you're gaining momentum ↳ Gross Margin reveals your pricing power ↳ Net Profit Margin tells the real health story CASH & RUNWAY ↳ Operating Cash Flow confirms you're funding yourself ↳ Cash Runway warns when to raise or cut spend ↳ Burn Multiple shows capital efficiency to investors CUSTOMER METRICS ↳ Customer Acquisition Cost guides marketing budgets ↳ Customer Lifetime Value validates if CAC is justified ↳ LTV-to-CAC Ratio predicts long-term profitability RETENTION & GROWTH ↳ Net Revenue Retention measures product stickiness ↳ Churn Rate gives early alerts on product issues ↳ Net Promoter Score predicts retention and referrals OPERATIONAL EFFICIENCY ↳ Sales Cycle Length impacts cash flow forecasts ↳ Days Sales Outstanding signals collection efficiency ↳ Employee Turnover Rate reflects culture and hiring FINANCIAL HEALTH ↳ EBITDA strips out accounting noise ↳ Growth Efficiency Ratio reveals expansion quality ↳ Average Revenue Per Account tracks upsell impact The magic isn't in tracking everything. It's in tracking the RIGHT things consistently. Most CEOs drown in vanity metrics while missing the signals that actually predict success. These 18 KPIs cut through the noise. They give you the clarity to make confident decisions. And the confidence to sleep better at night. 🔖 Save this cheat sheet. Review it monthly. ♻️ Share it. Help a CEO in your network. P.S. Which KPI do you watch most closely? Share in the comments below. Want a PDF of the 18 KPIs for CEOs? Get it free: https://lnkd.in/dhh5irfH And follow Eric Partaker for more CEO insights. ————— 📢 Ready to become a world-class CEO? I'm hosting a FREE TRAINING: "7 Steps to Become a Super Productive CEO" Thur, June 12th, 12 noon Eastern / 5pm UK time https://lnkd.in/d9BuZcrd 📌 20+ Founders & CEOs have already enrolled in our  next CEO Accelerator cohort, starting July 23rd. Earlybird offer ENDS SOON. Learn more and apply: https://lnkd.in/dwjGUkEN

Cold Calling Is Dying. Here’s What’s Replacing It. The numbers don’t lie: • Cold call success rates have dropped to 2.3% in 2025, down from 4.8% last year (Cognism). • 72% of sales calls never reach a person, and it takes 8+ dials to connect with just one prospect. • Only 28% of reps still view cold calling as effective. Meanwhile, high-performing teams are doing something different. Research-Driven, Insight-Led Outreach Wins: • Reps who thoroughly research their prospects are 3x more likely to succeed (Clevenio). • Prospect-specific research can lift conversions by ~30%. • Insight-led outreach builds trust before a call is ever placed. Email and Social Are Outpacing Phone-First Approaches: • Personalized cold emails outperform generic ones by 32%; average reply rates are 8–9%. • 78% of social sellers outsell peers, and social-enabled teams hit quota 66% more often. Takeaway: 1. The call is no longer the first touchpoint. It’s the third or maybe the fourth; it’s only viable once you have demonstrable engagement via other channels. 2. Buyers start with research—so should you. Start with research. Deliver value. Leverage email and social. Then—and only then—call with context. You’re no longer the teacher like when you were knocking on doors. 3. This is how modern sales works. And this is how trust is built at scale. Welcome to the future, my friends. 🙌🏾 #NervousSystemsStrategist #SalesLeadership #ModernSelling #ColdCalling #SalesDevelopment #InsightSelling #SalesStrategy #SalesEnablement

(FMCG Blueprint) 📢 Decoding Nielsen Metrics: Market Share, Share Among Handlers, Numeric Distribution & Weighted Distribution – Explained with a Biscuit Case Study 🍪 Let’s break down some Nielsen metrics that are core to our FMCG game. To make it relatable, let’s talk about biscuits – everyone’s favorite tea-time companion in India. Imagine a market with multiple biscuit brands battling it out on supermarket shelves. Here’s how these metrics would apply: 1️⃣ Market Share: This tells us how much of the total biscuit market belongs to a specific brand. • Case Study: If the total biscuit sales in a city are ₹1 crore a month and our hero brand, Bharat Biscuits, sells ₹20 lakh worth, their market share is 20% (₹20L/₹1Cr). 2️⃣ Share Among Handlers (SAH): This shows the market share of your brand only among stores that stock your biscuits. • Case Study: Out of 1,000 stores in the city, Bharat Biscuits is available in 300. If these 300 stores generate ₹40 lakh in total biscuit sales, and Bharat Biscuits contributes ₹20 lakh, their SAH is 50% (₹20L/₹40L). 3️⃣ Numeric Distribution (ND): This measures the percentage of stores stocking your brand compared to all stores in the market. • Case Study: Out of 1,000 stores, Bharat Biscuits is available in 300. Their Numeric Distribution is 30% (300/1,000). 4️⃣ Weighted Distribution (WD): This measures the sales potential of the stores stocking your brand. It’s about being present in stores where customers actually buy biscuits. • Case Study: Out of the 1,000 stores, 200 premium stores contribute 70% of total biscuit sales (₹70 lakh). If Bharat Biscuits is available in all these premium stores, their Weighted Distribution is 70%. Why Do These Metrics Matter? Let’s say Bharat Biscuits wants to grow. Should they: • Focus on increasing ND by entering more stores (even those with low sales)? • Or aim to boost WD by targeting high-sales stores? The choice depends on their strategy – go broad or go deep? Final Takeaway: In biscuits (and FMCG), it’s not just about being everywhere (ND); it’s about being where it matters most (WD). Market Share and SAH then tell you how well you’re performing in these stores. Remember, just like you wouldn’t settle for a soggy biscuit, don’t settle for just “presence” in stores. Aim for the right shelves, at the right places, at the right time! What’s your go-to strategy for distribution wins? Let’s discuss! #FMCG #SalesStrategy #NielsenMetrics #IndianFMCG

Most leaders think profit is simple. Revenue comes in, expenses go out, and profit is what’s left. But here’s where they're wrong: Profit isn’t one number—it’s multiple different stories. Gross profit. Operating Profit. Net Profit. And the elusive Contribution Margin. Each one answers a different question about your business. Confuse them, and you’ll misprice products, miss operational inefficiencies, and mislead stakeholders. Want to learn more? Download my free guide: 10 Essential Finance Concepts Leaders must Know: https://bit.ly/4ePgcNV Let’s break it down. 1️⃣ Gross Profit: Production Efficiency Gross Profit tells you how much revenue remains after covering the cost of goods sold (COGS). ↳ Formula: Revenue - COGS ↳ Use it to: • Validate pricing • Evaluate production efficiency ↳ Limits: It ignores all non-production costs. 2// Contribution Margin: Pricing Power Contribution Margin (not Profit) measures revenue after all variable costs. ↳ Formula: Sales Price - All Variable Costs (production and non-production) ↳ Use it to: • Optimize pricing and sales mix • Perform breakeven analysis ↳ Limits: Typically focuses on unit-level not overall profitability 3// Operating Profit: Operational Effectiveness Operating Profit includes all operating costs, giving a wider view of the business efficiency. ↳ Formula: Revenue - COGS - Operating Expenses ↳ Use it to: • Diagnose inefficiencies • Measure core business health ↳ Limits: Excludes interest and taxes—so it’s not the “bottom line.” 4// Net Profit: Overall Profitability Net Profit is the bottom line, showing revenue after everything—COGS, operating expenses, taxes, and interest. This is what grows the equity on your balance sheet. Or what shrinks it in the case of a Net Loss. ↳ Formula: Revenue - All Costs and Expenses ↳ Use it to: • Evaluate overall financial health • Communicate profitability to stakeholders ↳ Limits: Great for the big picture, but not for identifying specific issues. The Takeaway: Each profit margin answers a specific question: • Gross Profit: Are we producing efficiently? • Contribution Margin: Are we pricing correctly? • Operating Profit: Are we running effectively? • Net Profit: Are we truly profitable? Stop treating margins as interchangeable. Use them strategically, and you’ll make smarter decisions that drive your business's profitability. Learn more with my 5* on-demand video courses: https://bit.ly/3RlTCDD Transform your financial acumen as a leader in only 6 weeks - live program, spots are limited, starts in January: https://bit.ly/3ZCI0kr ♻️ 𝐋𝐢𝐤𝐞, 𝐂𝐨𝐦𝐦𝐞𝐧𝐭, 𝐑𝐞𝐩𝐨𝐬𝐭 if this was helpful. And follow Oana Labes, MBA, CPA for more.

Can you explain what happened here? If you can't, your business may be in BIG trouble. If you work in strategic finance, understanding how to comprehend + explain financial data is not a nice to have...it's a MUST. It doesn't matter whether you are presenting to leadership...the board of directors...or investors. If you don't have a tight grip on your data, you'll be faced with some catastrophic surprises. Let's learn how to interpret + present this by walking through this report together 👇 ➡️ PROFIT & LOSS SUMMARY Your P&L might look decent at first glance... We beat our bottom line net income by 14% 🙌 But a closer look reveals some important details... - Revenue is down 10% ($50K below budget) This is a pretty alarming metric and may mean that your assumptions are too aggressive here. Was it because your conversions rates were lower than expected? Was churn higher than expected? - COGS is actually BETTER than expected by 40% This makes sense...your revenue was lower, so your COGS should also be lower. But there's something more interesting to address here... your gross margin was 80%, compared to your projected 70%. While the variance is favorable it highlights an important question - do you have a strong grip on your unit economics? - Operating expenses are 10% favorable compared to budget. That's good...but why? Which accounts? Was it timing? Was it a change to your plans? - Net Other Income was -$10k compared to your projected +10k. Accounts here typically relate to interest income/expense, depreciation/amortization, and non core business activity. Although $10k may not seem like a lot, it warrants an important analysis This all leads to a $15k favorable net income, which is 14% higher than expected. All done with our analysis? Not quite... We've analyzed the PROFITABILITY of our business, now it's time to analyze our CASH FLOWS ➡️ CASH FLOWS SUMMARY This is where things get puzzling: - Collections are down $70k (78% below target 🤯 ) - Inventory up by $20k over budget - Total cash flows is $35k below budget Woah! We beat earnings but missed our cash flows by 27%?? Believe it or not, this story happens all the time...and it's up to you to see the forest beyond the trees and take action QUICKLY. ➡️ PUTTING IT ALL TOGETHER Your P&L is looking OK, but there are some strong indicators that you don't have a grip on your unit economics, and your revenue projections may be a bit overstated. But the biggest issue by far is your cash flows. You were supposed to collect $90k more than you invoiced this month but instead you only collected $20k. If you have $1m in the bank that may not be too material. But if you have $200k in the bank? Now things get more dangerous. That's why it's CRUCIAL to review this report each and every period - you don't want to be taken by surprise. === How would you interpret these results? What actions would you take? Share your analysis in the comments below 👇

"We need bigger deals to hit our revenue targets." Every VP of Sales says this. Then they discover what sucks about enterprise sales: As deal size goes up, win rates go down. Dramatically. Let's look at some super fun data to set the stage: - SMB ($5K-$25K): 35-45% win rate, 30-60 day cycle. - MM ($25K-$100K): 22-28% win rate, 90-120 day cycle. - ENT ($100K-$500K): 12-18% win rate, 180-270 day cycle - Strategic ($500K+): 8-12% win rate, 300+ day cycle. Now, the math gets fugly quickly: - SMB Rep: 40% win rate x 24 deals/year = 9.6 wins x $15K = $144K. - ENT Rep: 15% win rate x 8 deals/year = 1.2 wins x $250K = $300K. Sure, the ENT rep makes 2x the revenue. But look a tiny bit closer, starting with the risk analysis: - SMB rep: Predictable $144K +/- 20%. - ENT rep: Volatile $300K +/- 80%. And pair that with an ENT rep's reality: - Great year: $500K (2 big wins). - Average year: $300K (1-2 wins). - Bad year: $75K (zero wins). Versus a SMB rep's reality: - Great year: $175K (11 wins). - Average year: $144K (9-10 wins). - Bad year: $115K (7-8 wins). Which would you rather forecast? lol exactly. Look, we all know this, but worth repeating that as deal size increases, complexity explodes: - 4x more decision makers. - 5x longer cycles. - Higher budget scrutiny. - More competitors. Each factor multiplies the others. A $500K deal isn't 10x harder than $50K. It's 50x harder. Soooo what's a leader to do? Try building portfolios following the 60/30/10 rule: - 60% pipeline in reliable $25-75K deals (bread and butter). - 30% in growth $75-200K deals (stretch but achievable). - 10% in moonshot $200K+ deals (lottery tickets). You get base revenue from reliable deals, growth from MM expansion, AND upside from enterprise wins. Of course, be sure to build a specialized team. SMB reps need speed, process discipline, and volume management. Meanwhile, ENT reps need patience, relationship building, and the ability to navigate complexity. Don't try to have the same reps execute both motions...you'll just have a team that's mediocre at everything. tl;dr = bigger deals aren't better deals. They're different deals. Higher risk, higher reward, higher unpredictability. Before chasing ENT logos, ask yourself: - Can your team handle 85% rejection rates? - Can your forecast handle massive quarterly swings? - Can your pipeline handle 9-month cycles? If not, stay in your lane until you can. Because there's nothing wrong with winning consistently at $50K deals. But there's EVERYTHING wrong with losing consistently at $500K deals.

Unveiling the Secrets of Product Metrics: A PM's Guide to Unlocking Product Success In todays landscape product management, data reigns supreme. Product metrics, the quantitative heartbeat of product performance, provide PMs with the invaluable insights they need to decipher user behavior, optimize features, and propel their products to success. By mastering the art of tracking and analyzing these metrics, PMs can transform their products into growth engines. Why Product Metrics Matter for PMs Product metrics are not just numbers; they're the language of product success. They provide PMs with a crystal-clear understanding of how their products are performing, enabling them to set realistic goals, identify areas for improvement, and prioritize product development efforts with precision. In this handy guide, Paweł Huryn 🇺🇦, provides a comprehensive list that outlines the essential product metrics that PMs should track. Essential Product Metrics: The AARRR Framework The AARRR framework, provides a structured way to categorize and analyze product metrics. The framework consists of five key stages: 1/ Acquisition: This stage focuses on how users discover and learn about the product. Key metrics include website traffic, marketing campaign performance, and social media engagement. 2/ Activation: This stage measures the percentage of users who experience value from the product. Key metrics include signup completion rates, feature adoption rates, and time to first use. 3/ Retention: This stage evaluates how well the product retains users over time. Key metrics include daily active users (DAU), monthly active users (MAU), churn rate, and customer lifetime value (CLTV). 4/ Revenue: This stage monitors the financial performance of the product. Key metrics include monthly recurring revenue (MRR), average revenue per user (ARPU), and revenue growth rate. 5/ Referral: This stage assesses how enthusiastic users are about the product. Key metrics include net promoter score (NPS), referral rates, and social media mentions. Prioritizing Product Metrics While tracking all metrics can be tempting, PMs should consider the following factors when prioritizing product metrics include: 1/ Product Goals: Align metrics with the specific goals of the product, such as increasing user engagement, improving retention, or boosting revenue. 2/ Business Objectives: Select metrics that are relevant to the overall business objectives, such as increasing customer lifetime value or reducing customer acquisition costs. 3/ Data Availability: Ensure that the data required for the metrics is readily available and reliable. 4/ Impact on Decision-Making: Prioritize metrics that will directly inform product decisions and drive meaningful change. Are you a data-driven PM? Share what are the most impactful product metrics you track? How have these shaped your product's success journey #productmanagement #productmetrics #userbehavior #productsuccess #growthhacking #PM101

"Our funnel is completely clogged, and our CEO and investors are starting to panic," shared a CMO from a $375MM SaaS firm. The other Huddlers sympathized, noting they were facing similar challenges. Sound familiar? The old playbook of flooding the funnel, scoring MQLs, and handing off to sales isn't just broken; it's toxic. Here's why your funnel is clogged and what actually works now: 1. Your data is a disaster. The average customer contact database health score? A pathetic 47%, according to research from BoomerangAI. More than half of B2B companies haven't updated their database in six months—or ever. Bad data isn't just an operational issue. It erodes every layer of your funnel. Fix this first. Assign database ownership cross-functionally. Tie enrichment to your GTM motions. And please activate alumni contact programs. Only 12% of companies have formal programs for contacts who left employers, yet they're gold mines. 2. You're still pitching tours when buyers want tools. Recent TrustRadius research shows that 52% of buyers say prior experience is their #1 decision input. Only 13% say a demo "blew them away." 3. Stop the demo obsession. Launch website-based product exploration tools. Add pricing guidance. Create modular content for AI summarization since 90% of buyers who see AI-generated summaries click through to cited sources. 4. The MQL addiction is killing you. As one CMO put it: "MQLs are problematic... we’re trying to figure out how to get fewer, better leads." Track conversion quality at each funnel stage. Hold weekly demand gen and sales alignment meetings. Ditch vanity metrics for outcome-based KPIs. 5. You're pitching spend instead of displacement. Few CFOs are greenlighting net-new spending, but they will approve reallocation when the ROI is crystal clear. Reframe your pitch: "Invest in this → reduce spend on that." Connect to CFO logic, not just user pain. 6. You're making promises instead of proving value. Buyers want proof in 120 days or less. The "trust us, it'll pay off eventually" era is dead. If you have the data, create 120-day value realization case studies. Use prospect data to build "speed-to-value" narratives. Lead with time-to-value, not feature lists. The companies unclogging their funnels aren't working harder—they're working smarter. They've ditched the old playbook for data-driven precision. Your move. PS - For a longer look at this issue, please check out my May 2025 #HuddleUp newsletter.

Every PM wants to measure the success of their product. But most struggle to do it correctly. As a product management hiring manager, leader, and coach, I've seen that many product managers struggle with defining the right success metrics They focus on generic metrics like acquisition, engagement,  retention These are insufficient. My recommendation is to ask concrete questions when thinking of metrics Here's a list of questions I ask: 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝘂𝘀𝗲𝗿 𝗳𝗶𝗿𝘀𝘁 1. What is the user’s goal? 2. What human need do they want to fulfill? 3. What action signifies that their need is met? 4. Is that action enough to know user’s job is done? 5. How can I measure that action? 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝘂𝘀𝗮𝗴𝗲 𝗮𝗻𝗱 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 1. How many users are using the product? 2. How many users should be using it? 3. Which users aren't using it but should be using it? 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝗵𝗼𝘄 𝗺𝘂𝗰𝗵 𝘂𝘀𝗲𝗿𝘀 𝗲𝗻𝗷𝗼𝘆 𝘆𝗼𝘂𝗿 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 1. How many users like the product? 2. How much do they like it? 3. What action(s) show they “like” it? 4. How can I measure those actions 5. Do they like it enough to keep coming back? 6. If yes, how often should they come back? 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝗲𝘅𝗽𝗲𝗿𝗶𝗲𝗻𝗰𝗲 𝘁𝗵𝗲𝘆 𝗮𝗿𝗲 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝘄𝗵𝗶𝗹𝗲 𝘂𝘀𝗶𝗻𝗴 𝘁𝗵𝗲 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 1. Are users finding it hard to complete certain actions? 2. Are there things that users dislike? 3. Are there enough options for users to choose from? 4. Are there things that users want to do, but the product doesn’t allow them to? 5. Can we measure all the above? 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗾𝘂𝗮𝗹𝗶𝘁𝘆 𝗼𝗳 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 1. Can I cheat on any of the above metrics? 2. Do above metrics give the most accurate answer? 3. Are all metrics simple enough for everyone to understand? 𝗧𝗵𝗶𝗻𝗸 𝗮𝗯𝗼𝘂𝘁 𝘁𝗵𝗲 𝗻𝗲𝘁 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗼𝘃𝗲𝗿𝗮𝗹𝗹 𝗽𝗿𝗼𝗱𝘂𝗰𝘁/𝗰𝗼𝗺𝗽𝗮𝗻𝘆 1. Are  above metrics a true representation of success? 2. Any other parts of user journey I should measure? 3. Will a positive impact on above metrics lead to a negative impact on other critical metrics? 4. Is the tradeoff acceptable? -- How easy or tough do you find creating success metrics? What is your process?

Nobody talks about this. High growth companies are getting killed by their churn, and they're not noticing it. Here's how: Most b2b customers churn year 2. Which won't show up in the results until year 3. This means that the churn of one year's new business will not be visible in the results until 2 years later. With me so far? High growth companies tend to have a significant increase in new business every year. This means that your churn is disproportionally taken into account to the increased revenue of that year. A simplified example: Year 1 renewal: New business added: 100 000 ARR on 10 customers. Total ARR: 100 000. Churn: 0 ARR on 0 customers. Year 2 renewal: New business added: 300 000 ARR on 30 customers Total ARR: 400 000. Churn: 30 000 ARR on 3 customers. Counts as 7.5% but is actually 30% of the customers acquired before year 1 renewal. This is where it gets interesting. What ends up happening is that you think you're losing 7.5% annually, which seems manageable. But actually, you're losing 30% of your acquired customers each year, a rate that's alarmingly high. As long as you keep growing rapidly year after year, it will be hard to spot this. But as soon as your growth stagnates this effect will be seen in everything, everywhere, all at once. Suddenly, it's clear that churn isn't just a small issue -- it's been a significant problem all along. But then it will be too late. So how do companies get around this? 1. Be aware of this "lagging churn" effect. 2. Prioritise retaining customers over acquiring new ones 3. Scrutinise the customers you bring in early. Are they the right fit? Will they get value from the product? Will they stay? Will they be high or low maintenance? And take this seriously. I've seen so many companies fall into this trap. Usually around year 5-6 is when the effects really get overbearing. What are your views on this effect? Any suggestions on how to tackle it? #customersuccess #churn #growth #b2b