The Rudder Group - Sales & Marketing Metrics


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The Rudder Group - Sales & Marketing Metrics

  1. 1. The Rudder Group Growth Strategies & Mentor Capital12 Metrics Sales and Marketing ShouldTrack to Stay AccountableQuantity Metrics1) Reach: Reach is the total of a companys emaildatabase, social media following, blogsubscribers -- anyone the company can reachwith content or marketing messages. This metricis key because it measures the width at the verytop of the sales and marketing funnel.2) Leads Generated: The most typical marketingmetric is leads, and it continues to be animportant metric. Once someone is a lead, youhave 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. Measurethis not only at the end of a quarter or month (whatever your sales cycle is) but alsothroughout the month compared to your goal. That way youre not surprised on the lastday of the quarter that you havent reached your goal.Quality Metrics5) Visit-to-Lead %: This metric is a measure of the effectiveness of the marketing teamscalls-to-action and offers. This metric reflects the quality of the marketing teams 1
  2. 2. The Rudder Group Growth Strategies & Mentor Capitalcontent and can identify any issues at the very top of the funnel. Its also good to look atconversion rate on offer landing pages, specifically, to understand if the problem is onthe 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 ofthe initial quality of leads presented to your sales team. If a sales rep simply wont call oremail a lead given to them (a hot, inbound lead!) then something is wrong with thequality 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 toconnect with reflects how likely or willing a marketing-generated lead is to take the nextstep to talk with sales, and/or reflects the effectiveness of the sales reps follow upapproach.9) MQL-to-Opportunity %: The percentage of MQLs that become opportunities is ameasure of the quality of MQLs specifically. If you see this metric going down, you mayneed to reassess your criteria for a lead to be considered an MQL.10) Opportunity-to-Customer %: Once a lead reaches the opportunity stage, its largelyin the sales persons hands to bring it through the final stages of the sales funnel. TheOpportunity-to-Customer % is a measure of the quality of opportunities the sales teamis creating, and how effective they are at closing these opportunities.11) Lead-to-Customer %: The final funnel metric, Lead-to-customer %, gives you onenumber on the effectiveness of your sales and marketing funnel. This is a good, singlenumber to look at to understand how youre doing as a SMarketing team, while theother metrics above can diagnose which stages need work. 2
  3. 3. The Rudder Group Growth Strategies & Mentor Capital12) Average Deal Size: Since youreconcerned about revenue more than justthe number of customers, the averagerevenue per customer account is a keymetric that can improve your companysfinancials without changing any of the othermetrics.Use Dashboards to Quickly Monitor These MetricsMeasuring all these metrics doesnt mean you have to sit and look at Excel all day, everyday. Using the analytics built into your marketing software and CRM system, you cancreate standard reports and dashboards to automatically track all of your mostimportant SMarketing metrics. Plus, dashboards save you time -- you create the reportonce and can stay up to date on all your metrics forever -- letting you skim all thesemetrics 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 CapitalHow to Establish an SLAThe final piece in using metrics for better sales and marketing alignment is to establish aservice level agreement (SLA) between the two teams. This SLA defines what each teamcommits to accomplishing in order to support the other. For example, an SLA maydetermine that the marketing team will generate 100 inbound leads per sales rep, andin turn, the sales team will work at least 90% of those leads and will pursue each lead atleast 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 keybusiness goals and keep both teams accountable and successfully working together.About The Rudder GroupThe Rudder Groupis a Strategic Consulting Firm that provides growth strategies andmentor capital to early and mid-stage technology companies, financial advisors, venturecapitalist, and private equity firms.The Rudder Group team is a distinguished network of experienced partners with aproven success record. We have founded companies; been responsible for growingrevenues; secured multiple rounds of financing; taken companies public; and, been onboth the buy and sell side of M&A activity. 4
  5. 5. The Rudder Group Growth Strategies & Mentor CapitalHow We HelpThe Rudder Group extends your management team by providing a strategic and tacticalapproach 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 StrategiesMarketing & Lead Generation ServicesThe best way to accelerate growth is to create a constant stream of demand and adynamic sales pipeline for your solution and services. The Rudder Group has anextensive network of marketing professionals that are ready to advise you, create andexecute marketing plans, or step in as an interim Marketing Chief in times of transitionor start-up.The Rudder Group assists technology clients with developing, implementing, andachieving their go-to-market strategy. We assist on a project basis or on a specificcampaign. 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