{
  "rogueId": "sales.avg_contract_value",
  "slug": "avg_contract_value",
  "domain": "sales",
  "defaultLabel": "Average Contract Value",
  "description": "Average annualized contract value across new-customer deals signed during the period (ACV). Defines where the company plays on the SaaS deal-size spectrum and dictates the operating model — high-ACV businesses tolerate longer sales cycles and direct sales motions; low-ACV businesses must run product-led or inside-sales motions to keep CAC payback short. Common pitfall: blending new and expansion ACV obscures the new-logo deal-size trend that boards actually want to see. Anchored to KBCM/Sapphire SaaS Survey 2024 §Average Contract Value for cross-company benchmarking.",
  "fieldType": "currency",
  "unit": null,
  "maturity": "general",
  "suggestedForStages": [
    "seriesA",
    "seriesB",
    "seriesC",
    "public"
  ],
  "defaultOwningFunctions": [
    "Sales"
  ],
  "stageRelevance": {
    "seriesA": "core",
    "seriesB": "core",
    "seriesC": "core",
    "public": "core"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
    "sourceUrl": "https://www.cfodesk.co.il/wp-content/uploads/2024/10/2024_kbcm_sapphire_saas_survey.pdf",
    "sectionRef": "Average Contract Value",
    "publicationDate": "2024-09-01",
    "attributionNotice": null
  },
  "benchmark": {
    "p25": 25000,
    "median": 62000,
    "p75": 100000,
    "unit": "$",
    "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
    "sourceYear": "2024",
    "higherIsBetter": true
  },
  "formula": "Average Contract Value = New Business ARR / New Customers Added (for the same period). For multi-year contracts, use the annualized ACV (TCV / contract term in years), not Total Contract Value (TCV). Restrict to new-logo deals to keep the trend interpretable; track Expansion ACV separately if material.",
  "whyItMatters": "Sets the cost ceiling for the sales motion — at $5k ACV the company cannot afford a field sales team; at $250k ACV inside sales alone usually leaves money on the table. The board uses ACV trend to validate up-market or down-market strategy bets.",
  "interpretationGuidance": "Per KBCM/Sapphire SaaS Survey 2024 §Average Contract Value, segmentation bands: SMB ≤ $5k, Mid-Market $5k–$50k, Enterprise > $50k (often $100k+ for true enterprise). ACV doubling over four quarters is a clear up-market motion — make sure CAC and sales-cycle changes are reflected in plan. Flat ACV with rising volume = scaling the existing motion; rising ACV with flat volume = a deliberate up-market bet that needs explicit board buy-in.",
  "relatedKpiIds": [
    "sales.new_business",
    "sales.new_customers_added",
    "sales.median_deal_size",
    "sales.average_deal_size",
    "sales.avg_sales_cycle_days",
    "sales.cac"
  ]
}