Monthly Recurring Revenue (MRR) Closed vs Quota
What is MRR Closed vs Quota?
MRR Closed vs Quota is the amount of new MRR closed by a SaaS sales team vs the quota or target they were set.
How to calculate MRR Closed vs Quota:
MRR Closed / MRR Quota = MRR Closed vs Quota
For example, if a sales rep had closed $8,000 of MRR against a quota of $10,000 then there MRR Closed vs Quota would be 80%.
$8,000 / $10,000 = 80%
Sales people are intrinsically target oriented and also competitive. Measuring their progress against an MRR target and comparing their progress against peers taps into these competitive and target orientated traits do drive motivation.
Whilst MRR closed is what a sales team are targeted on, it does not mean money in the bank for a business. Even after a deal is closed issues can arise such as customers not paying or churning. Whilst it’s a great motivational tool for a sales team actual MRR paid may be more useful for financial planning.
How should you visualize MRR Closed vs Quota?