The SaaS Magic Number is a ratio showing yearly recurring revenue growth gained for every sales and marketing dollar spent. It indicates the level of operational efficiency of a company, as well as the sustainability of sales and marketing expenditure.

SaaS Quick Ratio is used to measure the growth efficiency of a company, but is often overlooked by early stage entrepreneurs and investors. Think of SaaS Quick Ratio as a health measure of company growth.

Sales Cycle Length is the count of the number of days or months it takes on average to close a deal. This metric can be helpful when creating sales forecasts, measuring sales efficiency, and speaking with investors. It is often referred to as the Average Deal Cycle and is usually expressed in months.

A Sales Qualified Lead (SQL) represents a prospect who has progressed beyond initial marketing engagement and demonstrates genuine potential for conversion. Unlike Marketing Qualified Leads (MQLs) that indicate early interest, SQLs have been vetted by sales professionals and meet specific criteria that suggest a higher likelihood of becoming a paying customer. These leads sit strategically in the middle of your sales funnel, having moved past the awareness stage but not yet reached the final purchase decision point.

The Sales and Marketing to Revenue Ratio represents the percentage of total revenue that a company invests in its sales and marketing activities. This metric serves as a critical indicator of how efficiently a company is acquiring and retaining customers relative to the revenue those efforts generate. It encompasses all costs associated with customer acquisition, including advertising spend, sales team compensation, marketing technology, promotional activities, trade shows, content creation, and customer relationship management systems. This ratio is particularly valuable for assessing the scalability and sustainability of a company's growth strategy. A well-optimised ratio indicates that the company is investing appropriately in revenue-generating activities without over-spending on customer acquisition, while maintaining the ability to compete effectively in its market. The metric also provides insight into a company's operational maturity and its ability to generate profitable growth over time.

Scrap Rate is the ratio of discarded material to the total production run. The definition of scrap varies somewhat but often includes both waste material, as well as production, rejects. Scrap Rate is easy to measure and is one of the most important quality metrics in manufacturing. Scrap is usually measured as pieces or units. Tracking this metric and improving this over time will lower raw material costs, improve throughput, and is better for the environment.

Search Impression Share is the percentage of impressions won by an ad campaign or ad group or keywords, out of the total impressions the campaign is eligible for. Ad targeting, keywords, and ad scheduling all play a role in the SIS won.

Search Lost Impression Share (Budget) is the percentage of Search Impression Share lost out of the total eligible impressions, due to campaign budget. It is generally measured at the campaign level on digital advertising platforms.

Search Lost Impression Share (Rank) is the percentage of search impression share lost out of the total eligible impressions, due to Ad Rank. Ad Rank depends on factors such as relevant keywords and targeted ads.

SAM measures the revenue opportunity of capturing a specific market for a product or service within your limitations and reach.

Serviceable Obtainable Market (SOM) measures the realistic revenue potential of a product or service in a particular market.

A Session, also known as a Website Visit, represents a group of user interactions with your website that occur within a given timeframe. Google Analytics defines a session as a period of continuous user engagement that begins when a user arrives on your site and ends when they leave or after 30 minutes of inactivity. Each session can contain multiple activities including page views, events, downloads, form submissions, and e-commerce transactions. Sessions are fundamental to understanding user behaviour patterns and website performance, as they capture the complete journey a user takes during a single visit to your site.