Presentation deck from Sales 2.0 conference presentation, April 3, 2012

1. B2B Sales & Marketing Metrics
Wor th Tracking (and a few that are
wor thless)
Matt Heinz
President, Heinz Marketing Inc
@heinzmarketing
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

2. Lies, damn lies and…
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

3. The Slippery Slope…
Just because you can track it:
•doesn’t mean you should
•doesn’t mean it’s important
•doesn’t mean it should be on your exec dashboard
Choose the right metrics to drive your business to
higher sales, greater pipeline yield and profitability
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

4. 1. Marketing Cost per Sale
Track leads to close and beyond
Understand efficiency, cost by lead source
Drive efficiency best practices to other channels
Bonus: Track marketing cost through to renewals,
referrals
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

5. 2. Customer Lifetime Value
What are you willing to spend to acquire?
Which customers are most profitable?
How will this drive sales incentives & behavior?
Bonus: Is your customer experience team involved in
defining target customers and setting expectations
before the sale?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

6. 3. Nurture Database Performance
How do you define a “nurture” lead?
What # and % of deals come out of the growing nurture
database?
What systems do you use to manage this database?
Bonus: Can you predict future revenue from the
nurture database over time?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

7. 4. Sales Cycle Length
How long is each stage once a lead is qualified and in
the market to buy?
What “catalyzing events” exist (internally or externally)
that accelerate deal velocity?
Does your lead-opportunity-sale model reflect this
length & duration?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

8. 5. Addressable Market Size
Does the full organization define the market similarly?
How does your sales goal translate to market
penetration expectations?
Based on your funnel mechanics, is this number
realistic?
Is your addressable market small enough?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

9. 6. Lead-Opp-Sale Conversion Rates
Assumptions
Product A ASP $ 15,000
Product B ASP $ 50,000
Opp/Close % 33.0%
Lead/Opp % 10.0%
Product A CPL $ 15
Product B CPL $ 35
Q1 2010 Q2 2010 Q3 2010 Q4 2010 TOTALS
Product A Sales # 50 56 63 69 238
Product B Sales # 8 9 10 11 38
Total Sales # 58 65 73 80 276
Product A Sales $ $ 742,500 $ 841,500 $ 940,500 $ 1,039,500 $ 3,564,000
Product B Sales $ $ 412,500 $ 453,750 $ 495,000 $ 536,250 $ 1,897,500
Total Sales $ $ 1,155,000 $ 1,295,250 $ 1,435,500 $ 1,575,750 $ 5,461,500
Product A Pipeline # 150 170 190 210
Product B Pipeline # 25 28 30 33
Total Pipeline # 175 198 220 243
Product A Pipeline $ $ 2,250,000 $ 2,550,000 $ 2,850,000 $ 3,150,000
Product B Pipeline $ $ 1,250,000 $ 1,375,000 $ 1,500,000 $ 1,625,000
Total Pipeline $ $ 3,500,000 $ 3,925,000 $ 4,350,000 $ 4,775,000
Product A Leads 1500 1700 1900 2100
Product B Leads 250 275 300 325
Total Leads 1750 1975 2200 2425 8350
Product A Lead Budget $ 22,500 $ 25,500 $ 28,500 $ 31,500
Product B Lead Budget $ 8,750 $ 9,625 $ 10,500 $ 11,375
Total Lead Budget $ 31,250 $ 35,125 $ 39,000 $ 42,875 $ 148,250
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

10. 7. Deal Size
Are some deals not worth pursuing?
Do you know your sweet spot? Are you proactively
targeting it?
Are you adjusting your sales & marketing strategies
based on revenue, margin and lifetime value yield
potential?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

11. 8. Qualified Leads
Do sales & marketing agree to a common definition?
Are there explicit next steps for managing these leads
forward?
Are you managing & optimizing qualified lead output (#,
%, $) from your marketing channels?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

12. 9. Referrals
Are you maximizing measurement of referral capture
without constraining volume?
What programs/incentives do you have in place to drive
the right referrals?
Are you segmenting referrals from current customers
vs. prospects, influencers, etc?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

13. 10. Customers
Quantify your best customers, and ensure your
sales/marketing is focused on finding & closing more of
them
Is your core or most-valuable customer segment(s)
growing or shrinking?
Can you quantify your share of wallet?
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

14. Five meaningless sales metrics
1. Dials
2. Demos or appointments scheduled
3. Talk time
4. Salesforce.com logins
5. Logged activities
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

15. General Metrics Best Practices
• Have an objective & action for each metric (or get rid
of it)
• Manage review sessions to next steps
• Crawl first; publish your first new dashboard by
tomorrow afternoon
• Actively manage “number creep”
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012

16. Questions?
Matt Heinz
matt@heinzmarketing.com
@heinzmarketing
877-291-0006
SALES 2.0 CONFERENCE • @Sales20Conf / #S20c • APRIL 2-3, 2012