> ## Documentation Index
> Fetch the complete documentation index at: https://hc.pillargtm.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Economics Signals

> Financial health signals: budget overruns, unit economics, S&M efficiency

# Economics Signals

Economics signals alert to financial health issues at the organizational level. These signals fire when financial metrics cross configurable thresholds.

## Signal Types

| Signal Type                         | Description                                           |
| ----------------------------------- | ----------------------------------------------------- |
| Budget Overrun                      | Actual spend exceeds planned budget                   |
| Territory Below Breakeven           | Territory cost-to-yield ratio is too high             |
| Headcount Plan Risk                 | Headcount scenario yields negative P\&L               |
| Unit Economics Degradation          | LTV:CAC ratio or payback period outside healthy range |
| Retention vs. Acquisition Imbalance | Over-investing in acquisition relative to retention   |
| S\&M Efficiency Warning             | Sales & Marketing spend too high relative to revenue  |

## Recomputation

Economics signals are recomputed daily.

## Recommended Actions

| Signal                     | Typical Action                                                            |
| -------------------------- | ------------------------------------------------------------------------- |
| Budget overrun             | Review spend categories, identify overages, adjust allocation             |
| Territory below breakeven  | Rebalance territories, evaluate rep productivity, adjust coverage model   |
| Headcount plan risk        | Revise hiring timeline, adjust quota assumptions, model alternatives      |
| Unit economics degradation | Review pricing, reduce CAC, improve retention programs                    |
| Retention vs. acquisition  | Rebalance investment, increase CS resources, reduce new logo spend        |
| S\&M efficiency warning    | Audit marketing spend ROI, consolidate channels, improve conversion rates |

> Detailed threshold configurations and severity logic are available in the PILLAR Implementation Guide provided to active customers.