Fig. 01 · Glossary
Sales Efficiency
Also known as Sales Efficiency Ratio
Definition
Sales efficiency compares sales and marketing investment to the new recurring revenue it creates. It is used to evaluate whether growth is repeatable, whether CAC payback is acceptable, and whether go-to-market execution is improving or consuming cash.
Sales efficiency separates growth from expensive motion. A company can grow revenue while destroying value if the acquisition engine consumes too much cash for too little durable ARR.
Boards should review sales efficiency alongside win rate, cycle time, gross margin, retention, and forecast accuracy.
Human Renaissance glossary · operator-grade definitions · Research methodology
