Most businesses track vanity metrics that make them feel busy but don't predict revenue. Pipeline value, lead count, activity volume—these numbers tell you what happened, not what will happen.
Here are the 5 metrics that actually predict future revenue and tell you where to focus your effort.
The LASER Metrics Framework
L - Lead Response Time
**Why it matters:** Speed kills deals. The difference between responding in 5 minutes vs. 30 minutes is often the difference between winning and losing.
**Target:** Under 5 minutes for initial response
**Impact:** 10x higher conversion rate
**How to track:** Time between lead capture and first contact
A - Activity-to-Outcome Ratios
**Why it matters:** Not all activities create equal results. Track which activities actually generate meetings and deals.
**Key ratios:**
- Calls to conversations: 1:4
- Conversations to meetings: 1:3
- Meetings to proposals: 1:2
- Proposals to deals: 1:3
S - Sales Velocity
**Formula:** (Number of opportunities × Average deal size × Win rate) ÷ Sales cycle length
**Why it matters:** Shows revenue generation speed. Higher velocity = more predictable growth.
E - Engagement Quality Score
**Track prospect engagement:**
- Email open and click rates
- Meeting attendance and participation
- Response time to your outreach
- Questions asked and depth of interaction
R - Revenue per Customer Contact
**Calculate:** Total revenue ÷ Total customer interactions
**Why it matters:** Reveals efficiency of your sales process and helps optimize resource allocation.
The 5-Minute Daily Dashboard
Track these metrics in 5 minutes each morning:
**Yesterday's Numbers:**
- New leads generated
- Response time average
- Meetings scheduled
- Proposals sent
- Deals closed
**This Week's Trends:**
- Pipeline velocity changes
- Conversion rate improvements
- Activity effectiveness
- Revenue per contact trends
Common Metrics Mistakes
Tracking Too Many Metrics
Focus on 3-5 key metrics that directly impact revenue. More metrics = more confusion.
Measuring Activities, Not Outcomes
Calls made doesn't matter. Conversations had does. Track results, not just effort.
Ignoring Leading Indicators
Revenue is a lagging indicator. Track metrics that predict future revenue, not just report past performance.
"What gets measured gets managed. But what gets managed intelligently gets optimized."
Implementation Strategy
Week 1: Set up LASER metrics tracking
Week 2: Establish baseline measurements
Week 3: Identify improvement opportunities
Week 4: Implement process changes and measure impact
Remember: the best metrics tell you where to focus next, not just how you performed yesterday.