10 B2B Metrics Worth Your Commitment


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B2B Metrics & Analytics Best Practices presentation from Focus Virtual Conference on December 2, 1010

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10 B2B Metrics Worth Your Commitment

  1. 1. 10 B2B Metrics Worth Your Commitment<br />Matt Heinz, Principal, Heinz Marketing<br />December 2, 2010<br />
  2. 2. Lies, damn lies and…<br />
  3. 3. The Slippery Slope…<br />Just because you can track it:<br /><ul><li>doesn’t mean you should
  4. 4. doesn’t mean it’s important
  5. 5. doesn’t mean it should be on your exec dashboard</li></ul>Choose the rightmetrics to drive your business to higher sales, greater pipeline yield and profitability<br />
  6. 6. 1. Marketing Cost per Sale<br />Track leads to close and beyond<br />Understand efficiency, cost by lead source<br />Drive efficiency best practices to other channels<br />Bonus: Track marketing cost through to renewals, referrals<br />
  7. 7. 2. Customer Lifetime Value<br />What are you willing to spend to acquire?<br />Which customers are most profitable?<br />How will this drive sales incentives & behavior?<br />Bonus: Is your customer experience team involved in defining target customers and setting expectations before the sale?<br />
  8. 8. 3. Nurture Database Performance<br />How do you define a “nurture” lead?<br />What # and % of deals come out of the growing nurture database?<br />What systems do you use to manage this database?<br />Bonus: Can you predict future revenue from the nurture database over time?<br />
  9. 9. 4. Sales Cycle Length<br />How long is each stage once a lead is qualified and in the market to buy?<br />What “catalyzing events” exist (internally or externally) that accelerate deal velocity?<br />Does your lead-opportunity-sale model reflect this length & duration?<br />
  10. 10. 5. Addressable Market Size<br />Does the full organization define the market similarly?<br />How does your sales goal translate to market penetration expectations?<br />Based on your funnel mechanics, is this number realistic?<br />Is your addressable market small enough?<br />
  11. 11. 6. Lead-Opp-Sale Conversion Rates<br />
  12. 12. 7. Deal Size<br />Are some deals not worth pursuing?<br />Do you know your sweet spot? Are you proactively targeting it?<br />Are you adjusting your sales & marketing strategies based on revenue, margin and lifetime value yield potential?<br />
  13. 13. 8. Qualified Leads<br />Do sales & marketing agree to a common definition?<br />Are there explicit next steps for managing these leads forward?<br />Are you managing & optimizing qualified lead output (#, %, $) from your marketing channels?<br />
  14. 14. 9. Referrals<br />Are you maximizing measurement of referral capture without constraining volume?<br />What programs/incentives do you have in place to drive the right referrals?<br />Are you segmenting referrals from current customers vs. prospects, influencers, etc?<br />
  15. 15. 10. Customers<br />Quantify your best customers, and ensure your sales/marketing is focused on finding & closing more of them<br />Is your core or most-valuable customer segment(s) growing or shrinking?<br />Can you quantify your share of wallet?<br />
  16. 16. General Metrics Best Practices<br />Have an objective & action for each metric (or get rid of it)<br />Manage review sessions to next steps<br />Crawl first; publish your first new dashboard by tomorrow afternoon<br />Actively manage “number creep”<br />