B2B Sales Metrics That Impact Revenue and Customer Lifetime Value
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B2B sales is complex due to metrics like CAC, LTV, ARPU that must be analyzed against deal size and churn rates impacted by product experience. While the sales funnel is non-linear, with 50% of conversions after trials, effective B2B sales still requires a consultative approach through analyzing customer data in the context of identifying the ideal customer profile and their needs rather than a purely self-service model.
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B2B Sales Metrics That Impact Revenue and Customer Lifetime Value
- 3. B2B sales is inherently complex
- 5. CAC = cost per acquisition. LTV = how much $$ in a user's lifetime VERSUS annual deal size. ARPU = Revenue per customer segment VERSUS annual deal size. CAC/LTV = cost for acquiring against how much revenue should be high. Churn and Retention = product management (DATA + customer discovery). The SaaS metrics that impact $$
- 7. Good Sales people make product experience better
- 8. Funnel is not linear: 50% of conversions after trial-end
- 9. Consumerization of B2B doesn’t mean buyers wants self-service
- 10. Analyse data in the lens of ICP, Consultative approach
Editor's Notes
- How they react, goals of all different people Champions / Adopters
- Paradox of freedom and choices. In G2 Crowd, 375 CRMs, 208 Live chat solutions, overwhelming! Right recommendations, Relevance of offerting, Tailoring on-boarding to maximize values
- ICP (Ideal Customer Profile) Segment by use-case, customize onboarding goals and tailoring sequences
- Price is exchange rate for the values Fierce competition: # of Martech company 400 → 5000 Consumers don’t appreciate product features, NPS goes down
- WTP (Willingness to pay) Add-Ons: premium support Differentiable features: taste in coffee Huge discrepancy what we think we’re building and what customers thiknk we’re building
- Data driven pricing Talk to customer (current, target, using panel…) - Basic statistical models (Relative preference, Price sensitivity) - Analysis & Recommendations You need to have pricing process
- Change pricing every 6-9 months Move features around, adjust different add-ons, discount rate for yearly subscription etc. Use different value proposition, Case studies, Value matrics (vs. feature differentiated) - increases WTP Localize pricing??
- The more users, the more product/market fits Not a fixed one, reinventing
- Like a person Beautiful design, meaningful (personalized, context), and evolving