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3 Critical Outbound Metrics

Outbound SDR teams sell to companies, not individuals, so your outbound prospecting funnel should be focused on companies. Having a deep understanding of your outbound prospecting funnel is necessary for forecasting and improving your team's performance. In this presentation, we'll talk about the metrics that make up your funnel and why they are critical.
Created by Taft Love & Chris Bryson.

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3 Critical Outbound Metrics

  1. 1. 3 CRITICAL OUTBOUND METRICS Taft Love & Chris Bryson
  2. 2. E-mail: Web: 02 CHRIS BRYSON Enterprise AE, Dropbox TAFT LOVE VP Sales, DocSend Co-Founder, Iceberg RevOps
  3. 3. E-mail: Web: 03 A LITTLE HISTORY Chris and Taft worked together to build Sales Development and Operations functions for PandaDoc and SmartRecruiters before moving into enterprise sales and sales leadership. Led 5 teams across 4 cities Hired more than 50 SDRs together Generated over $150m in AE pipeline Helped build and improve dozens of SDR programs
  4. 4. UPLEVEL THE SDR FUNCTION. Help SDR leaders and their teams get a seat at the executive table. OUR GOAL
  5. 5. E-mail: Web: 05 WHO IS THIS FOR? Teams doing focused outbound prospecting in Mid Market and Enterprise. Leaders Understand your funnel and plan accordingly Reps Understand your funnel so you know what inputs lead to pipeline Execs Know what metrics you need from SDRs to forecast outbound pipeline
  6. 6. E-mail: Web: 06 WHAT WE NOTICED... Data-driven outbound Sales Development wins up-market. Outbound programs are the new norm in MM and Enterprise. BUT THERE’S A PROBLEM... Sales Development doesn’t have a seat at the proverbial table. Few SDR leaders can accurately project outbound pipeline.
  7. 7. E-mail: Web: 07 VP SALES A qualified VP Sales can reliably forecast her output with four metrics: # Opportunities $ Average Opp % Win Rate T Sales Cycle SALES Outbound Prospecting Inbound Marketing ?
  8. 8. “Tracking sales velocity over time allows you to benchmark your own sales velocity against other teams, compare the effectiveness of individual reps or regions, and see how changes to the sales processes impact your business, for better or worse.” - Marketo Blog (Source) E-mail: Web: 08 SALES VELOCITY RATE SVR = Deal Cycle (T) # Opps Avg Opp $ Win RateX X
  9. 9. E-mail: Web: 09 MARKETING FUNNEL A qualified VP Marketing can reliably forecast his output with: Budget Cost Per Lead Lead-MQL Rate SALES Outbound Prospecting Inbound Marketing ?
  10. 10. E-mail: Web: 10 SALES Outbound Prospecting Inbound Marketing ?
  11. 11. E-mail: Web: 11 SALES DEVELOPMENT METRICS Call volume Call-to-connect ratio TACTICAL PERFORMANCE METRICS: Email response rates Number of meetings Email open rates Meetings set Closed outbound revenue RESULTS METRICS: Pipeline creation
  12. 12. WHAT’S MISSING?
  13. 13. E-mail: Web: 13 Qualified Meeting Set Engaged Activated Who: SDR & Marketing • Mark Accounts as active in CRM • Create account plan with Sales • Add relevant Contacts to Account • Begin outbound sequences Who: SDR & Marketing • At least 1 prospect responds to outreach • SDRs qualify before passing to AEs Who: SDR • Meeting set btw prospect and AE • Logged as Event in Salesforce Who: SDR & Sales • Opportunity created • Passed to Account Executive • This is the top of the Sales funnel OUTBOUND PROSPECTING FUNNEL
  14. 14. E-mail: Web: 14 METRIC 1 Activated Accounts Per Opportunity On average, how many accounts do you need to approach to create a new opportunity? You have to clearly define “active”. For example: 3 contacts have received at least 1 touch. Activation should be measured, not self-reported. It’s difficult for SDRs to focus on their job and tracking their own metrics. Activation should be the north star. Nothing else matters if you don’t approach the right number of acounts. Separate values for different segments. Don’t blend MM, and Ent opportunities into a single value.
  15. 15. E-mail: Web: 15 METRIC 2 Average Opportunity Value On average, how much pipeline does an opportunity add? Only factor in Outbound opportunities. Until you can measure it, guess conservatively. This is especially true for Land-and-Expand sales. Separate values for different segments. Don’t blend MM, and Ent opportunities into a single value.
  16. 16. E-mail: Web: 16 METRIC 3 Outbound Cycle Time How long does it take you to create a new opportunity via cold outbound? To measure this, you have to mark when an account is activated. This is why clearly defining activation is so important. Separate values for different segments. Don’t blend MM, and Ent opportunities into a single value.
  17. 17. E-mail: Web: 17 OUTBOUND VELOCITY RATE OVR = Outbound Cycle Time AAC* Active/Opp Avg OppX X
  18. 18. E-mail: Web: 18 WHY DOES THIS MATTER? Standard SDR metrics like call volume, connect rate, and email response rate are tactical and focused on individuals, not companies. Sales Development earns a seat at the table when they can quantify AND project their contribution to the business.