KPIs
Your accountant, your service manager and any future buyer all ask for different numbers. Here’s every KPI an MSP runs on, with its formula, its owner and the range a healthy shop lands in.
- Every KPI with its formula, owner and how often to measure it.
- Target, acceptable range and danger value, each with its source.
- Free to read, with no account needed.
Client Health
Client Net Promoter Score (NPS)The percentage of client contacts who would recommend the MSP (9 or 10 out of 10) minus the percentage who would not (0 to 6).Gross Revenue Retention (GRR)The share of recurring revenue from existing clients kept over a year, counting losses and downgrades but not expansion.Largest Client Share of RevenueThe percentage of total revenue that comes from the single largest client, with the top three clients tracked beside it.Logo Churn RateThe percentage of managed services clients that ended their agreement during the year.Net Revenue Retention (NRR)The recurring revenue from existing clients a year later, including expansion and price increases, as a percentage of what they paid a year ago.
Finance
Adjusted EBITDA MarginEarnings before interest, taxes, depreciation and amortization, adjusted for one-time and owner-specific items, as a percentage of revenue.All-In Seat Price (AISP)The average monthly recurring revenue earned per supported user seat across all managed services clients.Days Sales Outstanding (DSO)The average number of days it takes to collect payment after invoicing.Effective Hourly RateThe service revenue actually earned for each hour of technician labor delivered, across agreements, projects and hourly work.Gross MarginTotal revenue minus the direct cost of delivering it (technician labor, tools, resold product), as a percentage of total revenue.Managed Services Gross MarginThe gross margin earned on recurring managed services agreements alone, after the labor and tools needed to deliver them.Monthly Recurring Revenue (MRR)The total revenue billed each month under recurring agreements, such as managed services, security and cloud subscriptions.Recurring Revenue as Share of TotalThe percentage of total revenue that comes from recurring agreements rather than projects, product resale and hourly work.
People
Employee Net Promoter Score (eNPS)The percentage of employees who would recommend the MSP as a place to work minus the percentage who would not.Employee Turnover RateThe percentage of employees who left the MSP over a year, voluntarily or not.Service Multiple of WagesService revenue earned for every dollar paid in service delivery wages.Service Revenue per EmployeeAnnual service revenue divided by total headcount, a single measure of pricing, productivity and staffing combined.Technician Billable UtilizationThe percentage of a technician's available working hours logged against client work.
Sales and Growth
CAC Payback PeriodThe number of months of gross margin from a new client needed to recover the sales and marketing cost of winning that client.Client Lifetime Value to CAC RatioThe gross margin a typical client produces over its lifetime, divided by the cost of acquiring that client.Managed Services Revenue GrowthThe year over year percentage change in managed services revenue, from new clients and from growth inside existing ones.Pipeline CoverageThe value of qualified open pipeline compared with the new revenue target for the same period.Sales Cycle LengthThe average number of days from first qualified contact to a signed agreement for new clients.Win RateThe share of qualified sales opportunities that close as won in a period.
Security Operations
Backup Success RateThe share of scheduled backup jobs that completed successfully in the period.Mean Time to Identify and Contain a BreachThe average days from the start of a confirmed security breach to its identification, plus the days from identification to containment.MFA CoverageThe share of client user accounts enforced to use multi-factor authentication, with admin accounts tracked separately.Patch Compliance RateThe share of managed endpoints with critical and high severity patches installed within the patch SLA.Phish-Prone PercentageThe share of client users who click a link, open an attachment or enter credentials in a simulated phishing test.Restore Test Pass RateThe share of scheduled test restores or automated backup verifications that recovered data or systems successfully.
Service Delivery
Average Hands-On Time per TicketThe average technician labor time logged against each reactive ticket, as opposed to the calendar time it stayed open.Endpoints per TechnicianThe number of fully managed endpoints supported for each service technician, a measure of delivery capacity and staffing efficiency.Project Gross MarginThe gross margin earned on project work after labor and direct costs, measured per project and across all projects in a period.SLA AttainmentThe share of tickets where the MSP met the response and resolution times promised in the client agreement.Tickets Closed per Technician per DayThe average number of tickets each technician closes in a working day, reported by support tier.
Service Desk
Aged Ticket BacklogThe number of open tickets older than 30 days, and the open ticket load each technician carries.Client Satisfaction (CSAT)The share of post-ticket survey responses that rate the support experience positively.First Contact Resolution (FCR)The share of support tickets resolved during the client's first contact, with no escalation, callback or follow-up ticket.First Response TimeThe average time between a client submitting a ticket and the first human acknowledgment from the MSP.Mean Time to Resolve (MTTR)The average elapsed time from ticket creation to resolution for reactive client tickets.Ticket Reopen RateThe share of closed tickets that were reopened because the issue was not actually fixed.Tickets per Endpoint per MonthThe average number of reactive tickets each managed endpoint generates in a month, a measure of how noisy the managed estate is.
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