What are the most common business metrics across sales, marketing, and finance? Explain what each measures and why it matters.

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Understanding common business metrics across departments is foundational knowledge for BI analysts, as you will be asked to report on, calculate, and analyze these regularly.

Sales metrics focus on revenue generation and pipeline health. Revenue is the total income from sales. Monthly Recurring Revenue, or MRR, tracks predictable subscription income and is critical for SaaS businesses. Average Deal Size shows the typical value of a closed deal. Sales Conversion Rate measures what percentage of leads become paying customers. Pipeline Value represents the total potential revenue from active opportunities. These metrics help sales leaders understand current performance and forecast future results.

Marketing metrics measure the effectiveness of acquiring and engaging customers. Customer Acquisition Cost, or CAC, calculates the total cost of acquiring a new customer including marketing and sales expenses. Return on Ad Spend, or ROAS, shows how much revenue each dollar of advertising generates. Website conversion rate tracks the percentage of visitors who take a desired action. Lead volume and quality metrics show how many potential customers enter the funnel and how qualified they are. Marketing attribution connects revenue to specific campaigns and channels.

Finance metrics assess overall business health and profitability. Gross Margin is revenue minus cost of goods sold, expressed as a percentage. Operating Margin subtracts operating expenses to show operational efficiency. Cash Flow tracks the actual movement of money in and out of the business. Burn Rate measures how quickly a company spends cash, critical for startups. Accounts Receivable Aging shows how long customers take to pay invoices.

Customer metrics span all departments. Customer Lifetime Value, or CLV, estimates the total revenue a customer generates over their entire relationship. Churn Rate measures the percentage of customers who stop using the product. Net Promoter Score, or NPS, gauges customer satisfaction and loyalty.

For each metric, a BI analyst should understand the formula for calculation, what data sources feed into it, how frequently it should be measured, what constitutes good versus concerning values, and what actions stakeholders take based on changes. This understanding transforms you from someone who produces numbers into someone who provides business insights.