10 B2B Metrics Worth Your Commitment

10 B2B Metrics Worth Your Commitment

Matt Heinz, Principal, Heinz Marketing

December 2, 2010

© 2010 Focus, Inc. All rights reserved.

Lies, damn lies and…


Just because you can track it:

•doesn’t mean you should•doesn’t mean it’s important•doesn’t mean it should be on your exec dashboard

Choose the right metrics to drive your business to higher sales, greater pipeline yield and

profitability

The Slippery Slope…


Track leads to close and beyond

Understand efficiency, cost by lead source

Drive efficiency best practices to other channels

Bonus: Track marketing cost through to renewals, referrals

1. Marketing Cost per Sale


What are you willing to spend to acquire?

Which customers are most profitable?

How will this drive sales incentives & behavior?

Bonus: Is your customer experience team involved in defining target customers and setting expectations before the sale?

2. Customer Lifetime Value


How do you define a “nurture” lead?

What # and % of deals come out of the growing nurture database?

What systems do you use to manage this database?

Bonus: Can you predict future revenue from the nurture database over time?

3. Nurture Database Performance


How long is each stage once a lead is qualified and in the market to buy?

What “catalyzing events” exist (internally or externally) that accelerate deal velocity?

Does your lead-opportunity-sale model reflect this length & duration?

4. Sales Cycle Length


Does the full organization define the market similarly?

How does your sales goal translate to market penetration expectations?

Based on your funnel mechanics, is this number realistic?

Is your addressable market small enough?

5. Addressable Market Size


6. Lead-Opp-Sale Conversion Rates

AssumptionsProduct A ASP 15,000$ Product B ASP 50,000$ Opp/Close % 33.0%Lead/Opp % 10.0%Product A CPL 15$ Product B CPL 35$

Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTALSProduct A Sales # 50 56 63 69 238Product B Sales # 8 9 10 11 38Total Sales # 58 65 73 80 276

Product A Sales $ 742,500$ 841,500$ 940,500$ 1,039,500$ 3,564,000$ Product B Sales $ 412,500$ 453,750$ 495,000$ 536,250$ 1,897,500$ Total Sales $ 1,155,000$ 1,295,250$ 1,435,500$ 1,575,750$ 5,461,500$

Product A Pipeline # 150 170 190 210Product B Pipeline # 25 28 30 33Total Pipeline # 175 198 220 243

Product A Pipeline $ 2,250,000$ 2,550,000$ 2,850,000$ 3,150,000$ Product B Pipeline $ 1,250,000$ 1,375,000$ 1,500,000$ 1,625,000$ Total Pipeline $ 3,500,000$ 3,925,000$ 4,350,000$ 4,775,000$

Product A Leads 1500 1700 1900 2100Product B Leads 250 275 300 325Total Leads 1750 1975 2200 2425 8350

Product A Lead Budget 22,500$ 25,500$ 28,500$ 31,500$ Product B Lead Budget 8,750$ 9,625$ 10,500$ 11,375$ Total Lead Budget 31,250$ 35,125$ 39,000$ 42,875$ 148,250$


Are some deals not worth pursuing?

Do you know your sweet spot? Are you proactively targeting it?

Are you adjusting your sales & marketing strategies based on revenue, margin and lifetime value yield potential?

7. Deal Size


Do sales & marketing agree to a common definition?

Are there explicit next steps for managing these leads forward?

Are you managing & optimizing qualified lead output (#, %, $) from your marketing channels?

8. Qualified Leads


Are you maximizing measurement of referral capture without constraining volume?

What programs/incentives do you have in place to drive the right referrals?

Are you segmenting referrals from current customers vs. prospects, influencers, etc?

9. Referrals


Quantify your best customers, and ensure your sales/marketing is focused on finding & closing more of them

Is your core or most-valuable customer segment(s) growing or shrinking?

Can you quantify your share of wallet?

10. Customers


Have an objective & action for each metric (or get rid of it)

Manage review sessions to next steps

Crawl first; publish your first new dashboard by tomorrow afternoon

Actively manage “number creep”

General Metrics Best Practices

10 B2B Metrics Worth Your Commitment

Business

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