ChatGPT Prompt: Describe a KPI, Including the Formula

This prompt will give you the description and mathematical formula for any business KPI. It is a great way to learn how KPIs are calculated and what business performance they’re designed to report on.

Provide the generic formula for calculation and a brief description for each of the following SaaS KPIs

SaaS

• Churn Rate
• Monthly Recurring Revenue (MRR)
• Revenue Churn
• Annual recurring revenue (ARR)
• Committed Monthly Recurring Revenue (CMRR)
• Cash
• Customer Acquisition Cost (CAC)
• Customer Lifetime Value (CLV)
• Lead Velocity Rate (LVR)
• Net promoter score (NPS)

Here are the generic formulas and brief descriptions for the following SaaS KPIs:

1. Churn Rate: This KPI measures the percentage of customers who cancel their subscriptions over a given period of time. The formula for churn rate is: (Number of customers who churned during the period / Total number of customers at the beginning of the period) x 100%.
2. Monthly Recurring Revenue (MRR): This KPI measures the amount of revenue that is expected to be received each month from subscriptions. The formula for MRR is: (Total recurring revenue for the month / Number of customers)
3. Revenue Churn: This KPI measures the amount of revenue lost due to churn. The formula for revenue churn is: (MRR lost due to churn during the period / MRR at the beginning of the period) x 100%.
4. Annual Recurring Revenue (ARR): This KPI measures the amount of recurring revenue expected over a year. The formula for ARR is: (MRR x 12).
5. Committed Monthly Recurring Revenue (CMRR): This KPI measures the amount of revenue that is contracted to be received each month from subscriptions. The formula for CMRR is: (Total recurring revenue under contract / Number of customers).
6. Cash: This KPI measures the amount of cash available to the company. The formula for cash is: (Cash and cash equivalents + short-term investments).
7. Customer Acquisition Cost (CAC): This KPI measures the cost of acquiring a new customer. The formula for CAC is: (Total sales and marketing expenses / Number of new customers acquired).
8. Customer Lifetime Value (CLV): This KPI measures the total revenue a customer is expected to generate over their lifetime with the company. The formula for CLV is: (Average revenue per account per month / Churn rate).
9. Lead Velocity Rate (LVR): This KPI measures the rate at which leads are being generated over time. The formula for LVR is: (Number of leads generated in the period / Number of leads generated in the previous period) x 100%.
10. Net Promoter Score (NPS): This KPI measures the likelihood of customers recommending the company to others. The formula for NPS is: (Percentage of promoters – Percentage of detractors) x 100%. Promoters are customers who rate the company 9 or 10 out of 10, while detractors are customers who rate the company 0 to 6 out of 10.

Provide the generic formula for calculation and a brief description for each of the following manufacturing KPIs

Manufacturing

• On-Time Delivery
• Production Schedule Attainment
• Total Cycle Time
• Throughput
• Capacity Utilization
• Changeover Time
• Yield
• Scrap
• Planned Maintenance
• Availability
• Customer Return Rate

Here are the generic formulas and brief descriptions for the following manufacturing KPIs:

• On-Time Delivery: This KPI measures the percentage of products or orders that are delivered on time to the customer. The formula for on-time delivery is: (Number of products/orders delivered on time / Total number of products/orders delivered) x 100%.
• Production Schedule Attainment: This KPI measures the percentage of production schedule that was completed within the expected time frame. The formula for production schedule attainment is: (Actual production output / Planned production output) x 100%.
• Total Cycle Time: This KPI measures the time it takes to produce one unit or batch of products, from the beginning of the process to the end. The formula for total cycle time is: (End time – Start time).
• Throughput: This KPI measures the rate at which products are produced over a specific period of time. The formula for throughput is: (Total production output / Total production time).
• Capacity Utilization: This KPI measures the percentage of a manufacturer’s total production capacity that is being used. The formula for capacity utilization is: (Actual output / Maximum output) x 100%.
• Changeover Time: This KPI measures the time it takes to switch a production line from one product to another. The formula for changeover time is: (End time – Start time).
• Yield: This KPI measures the percentage of usable products that are produced in a given batch. The formula for yield is: (Total usable products produced / Total products started) x 100%.
• Scrap: This KPI measures the amount of unusable materials or products that are discarded during the production process. The formula for scrap is: (Total unusable products produced / Total products started) x 100%.
• Planned Maintenance: This KPI measures the percentage of planned maintenance activities that were completed on time. The formula for planned maintenance is: (Number of planned maintenance activities completed on time / Total number of planned maintenance activities) x 100%.
• Availability: This KPI measures the percentage of time that equipment or machinery is available for production. The formula for availability is: (Total time equipment/machinery was available / Total time equipment/machinery should have been available) x 100%.
• Customer Return Rate: This KPI measures the percentage of products that are returned by customers due to defects or other issues. The formula for customer return rate is: (Number of products returned / Total number of products sold) x 100%.