# 15 Key Agency Numbers to Track, With Formulas > Agencies should track 15 numbers across sales, retention and delivery: customer acquisition cost, churn, lifetime gross profit, revenue growth rate, referral rate, lead conversion rate, show up rate, qualified rate, qualified close rate, sales cycle length, average response time, average time to value, lost cash ratio, health score and completion rate. Each has a simple formula you can start using today. Source: https://fluxomate.com/blog/15-key-agency-numbers.html Published by Fluxomate (https://fluxomate.com/), 2024-08-11. Section: Full breakdowns. Video: https://www.youtube.com/watch?v=S_bmqPaBDh4 ## Key takeaways - Metrics and KPIs overlap. All metrics can be tracked, and KPIs are the ones that matter most to your goals. - Define one number before you use it to explain another. Churn comes before lifetime gross profit. - Sales numbers (conversion, show up, qualified, close rate) show where leads drop out of the funnel. - Delivery numbers (response time, time to value, health score) show where clients may leave. - Qualified close rate is a fairer view of your sales team than overall close rate. ## Which numbers should an agency track? Tracking the right numbers tells you what is really happening in your agency and improves everyday decisions. These are the 15 we track. Metrics and KPIs are related terms. All KPIs are metrics, but not all metrics are KPIs, and they can be split further into leading and lagging indicators. You do not need to get that technical to start. Each number below has a plain definition and a formula. The examples are illustrations of the method, not results. ## How do you calculate acquisition, churn and lifetime profit? These three numbers describe what a client costs to win, how fast clients leave and what a client is worth. **Customer acquisition cost (CAC)** is the cost of winning one new client. It includes all marketing and sales costs, not only ad spend. That covers marketing salaries, creative costs, ad spend, sales salaries and commission. Formula: total marketing and sales expenses divided by the number of new clients. Example: two salespeople at 40,000 a year each plus 40,000 of ad spend, for 10 new clients, gives (80,000 + 40,000) divided by 10, which is 12,000. **Churn** measures how many clients leave in a period. Formula: clients lost during the period divided by clients at the start, times 100. Example: starting with 1,000 clients and keeping 800 means 200 left, so churn is 20%. **Lifetime gross profit** is what a client is worth to the agency in profit. Formula: 1 divided by churn (as a decimal), times monthly gross profit per client. Example: with 10% churn (0.1), a client stays about 10 months on average. If a client pays 5,000 a month and costs 1,000 a month to serve, gross profit is 4,000 a month, so lifetime gross profit is 4,000 times 10, which is 40,000. You can compare CAC with lifetime gross profit as a ratio, but it does not need to be on your regular tracking list. ## How do you track growth and referrals? **Revenue growth rate** shows how fast revenue grows per month, quarter or year. Formula: (current period revenue minus previous period revenue) divided by previous period revenue, times 100. Example: going from 20,000 to 25,000 in a quarter is 25% growth. You can use the same formula for profit. It helps to compare your rate with the growth of your market. **Referral rate** is the share of clients who refer you to friends, family or contacts. Formula: total referrals divided by total clients, times 100. Example: 50 referrals from 400 clients is 12.5%. There are more accurate ways to calculate it, but this is an easy way to start. ## Which numbers measure your sales funnel? Together these show where people fall out between a lead and a client. - Lead conversion rate: clients divided by leads, times 100. Example: 10 clients from 100 leads is 10%. - Show up rate: people who attend divided by total appointments, times 100. Example: 38 show ups from 50 appointments is 76%. Higher is better, since you pay to book leads. - Qualified rate: qualified people who attended divided by people who showed up, times 100. Define qualified for your own business. For us it means we can help them and they can afford it. A good qualified rate suggests your marketing attracts the right people. - Qualified close rate: closes divided by qualified appointments, times 100. Example: 12 closes from 30 qualified appointments is 40%. Using all 75 appointments would make the sales team look weaker than they are, which is why we track this over the plain close rate. - Sales cycle length: total days to close every client divided by number of clients, counted from lead to client. Example: 31, 24, 10 and 21 days gives an average of 22 days. It is a lagging indicator, so you do not need to check it daily. ## Which numbers measure client service? These numbers show how clients experience you and warn you before they leave. - Average response time: total time taken for every response divided by the number of responses. It works for emails, tickets or calls. Keep it low. If it keeps rising, consider hiring more customer support. - Average time to value: total time to a first win divided by number of clients. Define a measurable first win, such as launching a reactivation campaign. The lower the number, the better, since early wins affect churn and lifetime gross profit. - Lost cash ratio: negative revenue (refunds, chargebacks, disputes) divided by new revenue over the same period. Example: 40,000 of negative revenue against 351,000 of new revenue gives 0.11. Keep it low. A ratio above 1 means you lose more than you make and the offer needs to change. - Health score: a view of how each client performs against your usual client KPIs. It is not a simple formula. Example: a short form editing agency tracks follower growth, subscriber growth and views. A client below the target on all three has a low score and one above on all three has a positive score. It helps your team spot a client who needs more resource before they leave. - Completion rate: people who finish a program divided by people who started, times 100. It applies if you run a program with a set outcome over a set period. Example: 18 of 20 finishing is 90%. ## How do you start tracking? Pick the numbers that match your model and begin with the ones you can calculate from data you already have, such as your CRM and billing records. Track them on a regular schedule and compare them over time. Many of these numbers combine. Lead conversion rate plus lifetime gross profit tells you what a lead is worth. Qualified rate and show up rate tell you whether your marketing and booking process work. Once tracking is automated, you can see problems earlier. ## Questions people ask ### What is customer acquisition cost for an agency? It is the cost of winning one new client. Add all marketing and sales expenses, including salaries, creative costs, ad spend and commission, then divide by the number of new clients in the same period. ### How do you calculate churn? Take the number of clients lost in a period, divide by the number you started with and multiply by 100. For example, losing 200 of 1,000 clients is 20% churn. ### What is the difference between close rate and qualified close rate? Close rate counts every appointment. Qualified close rate divides closes by qualified appointments only. It shows how well sales converts the people who are a real fit, so it is a fairer view of the sales team. ### What is a client health score? It compares each client's results with your usual client KPIs. Clients below target on key measures get a lower score. It helps support teams find clients who need attention before they leave. Tools used: Google Sheets Free templates for this guide: https://fluxomate.com/resources.html?r=15-key-agency-numbers