#ThursdayThoughts – Importance of a Singular Metric for Marketing and Sales


 

Hey, everybody. Today we’re gonna be talking about the importance of a singular metric for marketing and actually even sales. And the reason this is so important, well, it’s for a lot of reasons, you’re gonna have to watch a little more, but mostly because of focus. And when I say focus, having a singular metric means that you can focus your time, your team, your resources, everything towards one common goal so we can align all the different campaigns we’re running, teams we’re managing, and spend we have to our disposal, and all of this focus is gonna allow us to see success in a lot shorter timeline.

Now I’m gonna be speaking from the perspective of the singular metric we use at Directive. And this is for sales and marketing, so this isn’t for our entire business, and so take this through the lens of marketing and sales. New user acquisition, lead generation, this is the metric we use.

Now the reason this is gonna be valuable, hopefully, is illuminate how we think about it, how we’ve done it, and hopefully you can draw similarities to your own business and see if maybe that metric doesn’t fit for you, but the consistency and the singularity of a metric will fit for you. So the first thing we want our metric to be, and in Directive’s case, it’s proposals given. Now this is so important to have the clarity there, because we started with the word “opportunities,” but what does sales call an opportunity? What does marketing call an opportunity? And now the difference between both of them is now confusing everything and we can’t look at each department in an apples to apples lens, and now both parties, there becomes infighting between your marketing team and your sales team, because they’re having different goals and words that mean different things, and we don’t want any of that, right? We want continuity between our marketing and our sales.

So we measure proposals given. It started as opportunities, and as we kind of talked about just now, that meant something different to sales than it did to marketing. And so now we just use proposals given. But before we got to proposals given, we called it just proposals. Now the problem is, is sales was calling anytime someone set a proposal as a proposal, but then there wasn’t maybe enough followup to make sure that all the people that got comped on setting the proposal, actually the proposal occurred, because maybe the person, the client, the prospective customer doesn’t show up.

And so as simple as it sounds, getting to the point of saying that our singular metric is proposals given, was a powerful moment for Directive, and I know it can be powerful for your firm. And now knowing this, anytime that we’re talking with sales or we’re talking with marketing or we have a group discussion, we can ask them, okay, that campaign, how did it work? How many proposals given or resulted from that campaign, from that SDR, from that email, from whatever it was, we can tie it back to a singular metric to measure its success.

Now, this metric should also be something that the parties involved have control of. So we’re not measuring revenue, because revenue is a trailing metric. Revenue in one month is indicative usually of proposals given in a prior month, and we want to have real-time feedback on the metric we’re using, so we use proposals given, not just revenue by channel if you’re wondering there.

Next, it should be measurable. We can easily measure how many proposals were given and then what channel they came from. You can either use a Google click ID, and then integrate that with your Salesforce, or you can use a tool like Bizible. Whatever you’re doing, you want to make sure that you can measure it. It’s very important.

So you have a measurable singular metric. It’s descriptive, in that just saying it alone makes it a goal and it aligns to revenue. Proposals, not really a metric, proposals given is a descriptive metric, and it’s tied to revenue. So you want to make sure that it’s measurable, descriptive, and tied to revenue. And, last but definitely not least, that it’s singular. It is really, really hard to manage a marketing team when you’re measuring them on a thousand different KPIs. Okay, well how many keywords are ranking? Okay, what’s our bounce rate? How many visitors do we have? How many visitors by channel do we have? When we have goals for every single thing across every single channel, we get caught into the minutia. We get dragged into the fine print of all these little channels and we lose sight of what pays everybody in the room, and that is why having a singular metric that we can constantly just default to is so important.

Now I’m not saying you shouldn’t have sub-metrics that you look at and that, you know, it’s not valuable to not measure everything. Measuring things is incredibly important, but in our communication with our marketing team, with our sales team, to executives, to outside vendors, to internal peers, we need to make sure that we have consistent singularity coming from the metric that matters most to our business, especially as sales and marketing professionals.

Garrett Mehrguth
CEO & Co-Founder
Twitter: @gmehrguth
LinkedIn: Garrett Mehrguth
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