Annual Contract Value (ACV)

ACV is a sales metric that measures the amount of revenue generated from contracts over a one-year period. It is an important measurement in sales operations as it helps gauge the success and growth of sales efforts. Calculating ACV involves adding up all active contract values, then dividing by the number of active contracts. This metric can also be used to compare sales performance across teams or sales representatives. By monitoring ACV, sales leaders can make strategic decisions and adjustments to drive greater revenue growth.