The Rudder Group - Sales & Marketing Metrics


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The Rudder Group - Sales & Marketing Metrics

  1. 1. The  Rudder  Group        Growth  Strategies  &  Mentor  Capital      12   Metrics   Sales   and   Marketing   Should  Track  to  Stay  Accountable  Quantity  Metrics    1)  Reach:   Reach   is   the   total   of   a   companys   email  database,   social   media   following,   blog  subscribers   -­‐-­‐   anyone   the   company   can   reach  with  content  or  marketing  messages.  This  metric  is  key  because  it  measures  the  width  at  the  very  top  of  the  sales  and  marketing  funnel.  2)   Leads   Generated:  The  most  typical  marketing  metric   is   leads,   and   it   continues   to   be   an  important   metric.   Once   someone   is   a   lead,   you  have  their  contact  information  and  can  nurture  them  more  effectively.   3)   Revenue   Pipeline:   Revenue   pipeline   takes   the  leads  marketing  generates  and  projects  the   value   of   that   lead   based   on   lead   close   rates   and   average   revenue   per   sale.   Revenue   pipeline   is   a   surprisingly   clarifying   metric   because   you   can   directly   line   up   marketings   efforts   with   sales   quota   to   make   sure   the   teams  are  aligned  to  reach  the  same  end  goal.   4)   Revenue:   The   ultimate   goal   of   the   entire   sales   and   marketing   team:   revenue.   Measure  this   not   only   at   the   end   of   a   quarter   or   month   (whatever   your   sales   cycle   is)   but   also  throughout  the  month  compared  to  your  goal.  That  way  youre  not  surprised  on  the  last  day  of  the  quarter  that  you  havent  reached  your  goal.  Quality  Metrics    5)   Visit-­‐to-­‐Lead   %:  This  metric  is  a  measure  of  the  effectiveness  of  the  marketing  teams  calls-­‐to-­‐action   and   offers.   This   metric   reflects   the   quality   of   the   marketing   teams   1  
  2. 2. The  Rudder  Group        Growth  Strategies  &  Mentor  Capital    content  and  can  identify  any  issues  at  the  very  top  of  the  funnel.  Its  also  good  to  look  at  conversion  rate  on  offer  landing  pages,  specifically,  to  understand  if  the  problem  is  on  the  initial  CTA  or  the  landing  page.    6)   Lead-­‐to-­‐Marketing   Qualified   Lead   (MQL)   %:  The   lead-­‐to-­‐MQL   percentage   is   a   measure   of   how   effective   marketing   is   at   converting   leads   beyond   the   stage   of   simply   having   someones   contact   information,   to   a   stage   of   qualification.   7)   Leads   Presented-­‐to-­‐Leads   Worked   %:  The   percentage  of  leads  worked  by  the  sales  team   is  a  great  -­‐-­‐  not  to  mention  quick  -­‐-­‐  measure  of  the  initial  quality  of  leads  presented  to  your  sales  team.  If  a  sales  rep  simply  wont  call  or  email   a   lead   given   to   them   (a   hot,   inbound   lead!)   then   something   is   wrong   with   the  quality  of  the  lead,  or  the  handoff/agreement  between  sales  and  marketing.  8)   Leads   Worked-­‐to-­‐Leads   Connected   %:  The   percentage   of   leads   that   sales   is   able   to  connect  with  reflects  how  likely  or  willing  a  marketing-­‐generated  lead  is  to  take  the  next  step   to   talk   with   sales,   and/or   reflects   the   effectiveness   of   the   sales   reps   follow   up  approach.  9)   MQL-­‐to-­‐Opportunity   %:  The   percentage   of   MQLs   that   become   opportunities   is   a  measure  of  the  quality  of  MQLs  specifically.  If  you  see  this  metric  going  down,  you  may  need  to  reassess  your  criteria  for  a  lead  to  be  considered  an  MQL.  10)  Opportunity-­‐to-­‐Customer  %:  Once  a  lead  reaches  the  opportunity  stage,  its  largely  in  the  sales  persons  hands  to  bring  it  through  the  final  stages  of  the  sales  funnel.  The  Opportunity-­‐to-­‐Customer  %  is  a  measure  of  the  quality  of  opportunities  the  sales  team  is  creating,  and  how  effective  they  are  at  closing  these  opportunities.  11)   Lead-­‐to-­‐Customer   %:  The   final   funnel   metric,   Lead-­‐to-­‐customer   %,   gives   you   one  number  on  the  effectiveness  of  your  sales  and  marketing  funnel.  This  is  a  good,  single  number   to   look   at   to   understand   how   youre   doing   as   a   SMarketing   team,   while   the  other  metrics  above  can  diagnose  which  stages  need  work.     2  
  3. 3. The  Rudder  Group        Growth  Strategies  &  Mentor  Capital    12)   Average   Deal   Size:  Since   youre  concerned   about   revenue   more   than   just  the   number   of   customers,   the   average  revenue   per   customer   account   is   a   key  metric   that   can   improve   your   companys  financials  without  changing  any  of  the  other  metrics.  Use  Dashboards  to  Quickly  Monitor  These  Metrics    Measuring  all  these  metrics  doesnt  mean  you  have  to  sit  and  look  at  Excel  all  day,  every  day.   Using   the   analytics   built   into   your   marketing   software   and   CRM   system,   you   can  create   standard   reports   and   dashboards   to   automatically   track   all   of   your   most  important  SMarketing  metrics.  Plus,  dashboards  save  you  time  -­‐-­‐  you  create  the  report  once   and   can   stay   up   to   date   on   all   your   metrics   forever   -­‐-­‐   letting   you   skim   all   these  metrics  to  look  for  any  issues  as  they  pop  up.  Here  are  some  tips  in  creating  your  dashboard  for  ultimate  SMarketing  alignment:  • Create   a   shared   dashboard   that   includes   the   key   metrics   for   both   teams.   That   gives   you   one   place   for   everyone   to   look   for   a   high-­‐level   view   of   how   youre   doing.    • Make   the   dashboard   accessible  to   keep   both   teams   accountable   to   their   metrics.    • Look   at   the   metrics   by   short-­‐term   and   long-­‐term   timeframes.   Look   at   our   metrics   by   day   (for   the   month)   and   by   month   (for   the   year).   That   gives   you   both   a  detailed  and  high-­‐level  view  at   the  same  time.    • Check   the   dashboard   every   day.  If   these   are   your   most   important   metrics,   you   should   know   how   youre   doing   at   all   times.   Whether   you   manually   check  your  dashboard  every  day   or   you   have   the   dashboard   emailed   to   your   inbox,   make   sure  you  know  your  metrics.   3  
  4. 4. The  Rudder  Group        Growth  Strategies  &  Mentor  Capital      How  to  Establish  an  SLA    The  final  piece  in  using  metrics  for  better  sales  and  marketing  alignment  is  to  establish  a  service  level  agreement  (SLA)  between  the  two  teams.  This  SLA  defines  what  each  team  commits   to   accomplishing   in   order   to   support   the   other.   For   example,   an   SLA   may  determine  that  the  marketing  team  will  generate  100  inbound  leads  per  sales  rep,  and  in  turn,  the  sales  team  will  work  at  least  90%  of  those  leads  and  will  pursue  each  lead  at  least  5  times  over  a  month  before  considering  it  unreachable.  To  establish  your  own  SMarketing  SLA:  • Run  an  analysis  on  the  close  rates  by  type  of  lead  (ebook  vs.  demo,  Healthcare   segment  vs.  Technology  segment).    • Determine   the   number   of   leads   (or   lead   value,   such   as   the   revenue   pipeline   metric   mentioned   above)   needed   per   sales   rep   to   reach   his/her   quota.   This   becomes  the  Marketing  SLA    • Define  the  number  and  frequency  of  attempts  a  sales  rep  must  work  the  leads   generated  for  them.  This  becomes  the  Sales  SLA.    • Include  these  metrics  on  the  dashboard  you  look  at  daily.    Using   data   is   a   great   way   to   bring   sales   and   marketing   together   to   align   towards   key  business  goals  and  keep  both  teams  accountable  and  successfully  working  together.      About  The  Rudder  Group    The   Rudder   Group   is   a   Strategic   Consulting   Firm   that   provides   growth   strategies   and  mentor  capital  to  early  and  mid-­‐stage  technology  companies,  financial  advisors,  venture  capitalist,  and  private  equity  firms.        The   Rudder   Group  team  is   a   distinguished   network   of   experienced   partners   with   a  proven   success   record.     We   have   founded   companies;   been   responsible   for   growing  revenues;  secured  multiple  rounds  of  financing;  taken  companies  public;  and,  been  on  both  the  buy  and  sell  side  of  M&A  activity.   4  
  5. 5. The  Rudder  Group        Growth  Strategies  &  Mentor  Capital    How  We  Help    The  Rudder  Group  extends  your  management  team  by  providing  a  strategic  and  tactical  approach  to  operational,  business  and  executive  related  matters...     • Secure  Capital    &  Work  with  VCs     • Develop  New  Routes  to  Market   • Globalize  Solutions     • Accelerate  Growth  &  Revenue  Plan   • Implement  Social  Marketing  Strategies  Marketing  &  Lead  Generation  Services    The   best   way   to   accelerate   growth   is   to   create   a   constant   stream   of   demand   and   a  dynamic   sales   pipeline   for   your   solution   and   services.   The   Rudder   Group   has   an  extensive  network  of  marketing  professionals  that  are  ready  to  advise  you,  create  and  execute  marketing  plans,  or  step  in  as  an  interim  Marketing  Chief  in  times  of  transition  or  start-­‐up.    The   Rudder   Group   assists   technology   clients   with   developing,   implementing,   and  achieving   their   go-­‐to-­‐market   strategy.   We   assist   on   a   project   basis   or   on   a   specific  campaign.  Some  of  the  ways  The  Rudder  Group  can  be  of  assistance  are:     • Positioning,  Branding  and  Messaging   • Integrated  Marketing  Plans   • Product  Launch   • Product  Marketing  &  Positioning   • Demand  &  Lead  Generation  Programs   • Social  Media  &  Audience  Development   • Website  Development  &  Content  Creation   • Trade  Shows  &  Conferences   • Collateral  &  Sales  Tool  Development   • Webinars,  Podcasts  &  Bloggers   • Public  Relations     • Channel  Development   5