Revenue efficiency stands out compared to other performance metrics

  • Revenue efficiency rate.
  • Customer lifetime value compared to cost of customer acquisition, often simply referred to as LTV:CAC.
  • Win rate for account executives.
  • Qualified leads collected per month, including marketing-qualified leads and sales-qualified leads.
  • Lead-to-conversion rate.
  • Sales per lead.
  • Uses actual dollar figures and not estimates.
  • Clearly connects investments and their outcomes.
  • Easily compares performance quarter over quarter, year over year, or any other period.
  • LTV:CAC — While CAC is based on actual numbers (because those costs are known), LTV is an educated estimate based on past customer patterns. No company truly knows what any given customer will spend ahead of time or how long a buyer will remain a customer.
  • Win rate for account execs — Although win rate tracks individual performances and can show a broader picture of sales team activity, this metric does not accurately offer any insight on company-wide investments.
  • Qualified leads per month — The leads can be quantified, but it is murkier attempting to apply the results to revenue and spending. There’s no way ahead of time how much revenue a lead will bring in.
  • Lead to conversion rate — Again, this is a ratio that is easily calculated, but similar to qualified leads, it’s tricky to compare it to earnings or costs.

“If the sales or marketing team has an idea they believe will drive revenue that requires investment, revenue efficiency provides everyone with a stake in the outcome with a very easy way to track whether or not that investment was worth it,” Watson said. “I think this is really powerful. It allows us to be more forward looking and proactive with how we think about the business.”

  • The revenue efficiency rate acts as an easily digested metric to measure company performance.
  • The rate offers advantages over other popular performance-based data points.
  • It allows for forward-looking planning by companies.

Do you have a (data-driven) story?

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We use millions of data points from our B2B intelligence platform to unearth trends in the way people buy, sell, and go to market. https://www.zoominfo.com

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