You know the drill. Marketing brings in the leads, and sales says they’re junk (especially if they miss a goal). Marketing then turns around and complains that sales can’t close the amazing leads coming through the door. It’s a timeless business challenge we’ve all probably experienced but most certainly need to overcome!
Metrics can help.
By measuring and understanding your numbers, you’ll be able to improve the leads you bring in and - turn them into customers more efficiently. That way everyone wins, and the cross-departmental bickering stops. Here are some principles to live by when measuring what we like to call your Revenue Performance Management (RPM) process:
1. You can only improve what you measure.
As long as a company continues to ignore metrics, marketing and sales will bicker and revenue will suffer. It’s time to start defining metrics that will tell you where and how to improve – then start measuring! Your first analysis will give you a benchmark and you’ll make improvements from there. For example, start documenting your conversion rates (closed deals/number of leads). When your conversion rate increases from 1.5% to 2.5%, both marketing and sales will be thrilled!
2. But don’t overmeasure - it’s dangerous.
There is one classic miscue that can happen once you start to measure your RPM process. You can get too into the numbers and may start to look at very small sample sizes. This can happen when looking at lead sources, for example. If a specific blog generates 3 leads and 1 sale, you are converting at 33%. Compare that to your next blog that produces 150 leads and 3 sales, at a 2% conversion rate. The latter is actually performing better!
And remember - quality counts, That first blog may not be bringing in better leads! There simply isn’t enough data to tell. Allow yourself to get to an acceptable sample size before making a decision. That number depends on your company size, revenue, and more.
3. Don’t get overwhelmed - there’s a process you can follow.
On the flipside, metrics can be overwhelming and some people ignore them altogether. This probably happens more than overmeasuring! With all of this data floating around, you need to have a measurement strategy in place. That way, you can track what matters and ignore the rest.
Download the ebook below! This way, you can avoid analyzing the numbers too much (#2) and stop yourself before giving up altogether (#3). With the right metrics and tools in place, you’ll improve your RPM process… and you may even see your sales and marketing people at happy hour. Together!