B2B Sales methodology and metrics overview as an extension of CRM.

1. B2B SALES HACKS
Methods and Metrics

2. This deck is a continuation of the CRM and Customer Experience Management
presentation focusing more specifically on B2B sales methodology, pipeline and metrics.

3. CRM: DEFINITION
WHAT IT IS
CRM is a practice of using technology to maintain a system of
record at the customer level, and perform business
transactions or updates to this record based on the customer's
relationship with a company.
WHAT IT ISN’T
An application that manages customer relationships,
specifically.

4. CRM: VENDORS
WHICH VENDORS OCCUPY
THE SPACE?
The CRM industry is highly fragmented across industry, vertical
and scenarios. Many CRM vendors such as PipeDrive, Highrise,
and streak are among thousands who occupy 54% of the
market.
Microsoft
7%
Oracle
10%
SAP
13%
Salesforce
16%
Other
54%
US CRM MARKET
SHARE BY
VENDOR
Source: Gartner

5. CRM: MARKET
INDUSTRY GROWTH (CRM, ERP)
0
10
20
30
40
2010 2011 2012 2013 2014 2015 2016 2017
CRM ERP
WHAT IS THE GROWTH
OPPORTUNITY IN CRM?
The US CRM industry is forecasted at 56% CAGR
through 2017 and will outpace ERP technologies in the
enterprise.
Source: Gartner

6. SALES: MGMT CHALLENGES
WHAT HAS CRM NOT
SOLVED FOR EXECUTIVES?
Despite tools and processes, commercial goals are
elusive and executives are actively looking for
solutions.
Source: Qvidian
0
25
50
75
100
75
8283
87
94
Increase
Win Rate
Improve
Quota
Attainment
Increase
Deal Size
Visibility
into
Productivity
Shorten
Sales
Cycle

7. SALES: REP CHALLENGES
WHAT HAS CRM NOT
SOLVED FOR SALES PROS?
Source: Qvidian
0
25
50
75
100
2020
25
46
58
New
Accounts
Account
Penetration
Sales
Perf.
Optimize
Deal Size
Improve
Customer
Loyalty
Despite tools and processes, individual goals are
elusive and sales professionals are actively looking for
ways to meet targets.

8. SALES METHODOLOGY
C
B
A
WHAT SHOULD I KNOW
ABOUT MY PIPELINE?
1. Stage metrics
2. Opportunity and Activity metrics
3. Customer Metrics

9. PIPELINE METHODOLOGY
Done
Doing
To-Do
HOW DO I DESIGN MY
SALES FUNNEL STAGES?
Sales funnels are one way to look at a pipeline of a
company or an individual, and can vary based on the
sophistication of your organization and needs.

10. PIPELINE METHODOLOGY
Close
Solution
Lead
As sophistication increases, so do the number of
stages, which are attributed to a percentage of
qualification.
Qualification
HOW DO I DESIGN MY
SALES FUNNEL STAGES?

11. PIPELINE METHODOLOGY
Closed
Solution
Lead
With each sales stage, stakeholders may want to
measure correlations, such as lead time, sales stage
costs, etc.
Needs Analysis
Validation
HOW DO I DESIGN MY
SALES FUNNEL STAGES?

12. PIPE INFRASTRUCTURE
Automation Tools
There are many tools that exist as CRM add-ons or
stand-alone to enhance sales stage abilities.
Campaign Monitor
mention.net
tower data,
clear bit,
full contact,
reparative
outreach,
tout,
growbots
mport.io,
python scripts on
github,
outwit,
nerdy data
proleads.io,
datadyze,
data.com
Harvesting Qualification Outbound
Source: 500 Startups

13. SALES CYCLE
The process that companies undergo when selling a
product to a customer. It encompasses all activities
associated with closing sale. Many companies have
different steps and activities in their sales cycle,
depending on how they define it.
Step 1
Step 2 Step 3
Step 4
Step 5
PIPELINE METHODOLOGY

14. SALES METRICS
COST PER LEAD/ACTION
Or CPL, or CPA, referring to lead generation and the
cost associated with making a conversion, regardless if
the customer is new or returning.
Formula: CPL = marketing spend / New Orders
$inthousands
$0
$300
$600
$900
$1,200
Outbound Inbound Out-of-Home Trade Show
18
7
22
45
600
200
300
995
In the above graph, I am demonstrating that ‘marketing spend’ spans multiple
categories, each that have gained new orders. The sum of marketing spend ($2,095),
divided by new orders (97), provides the cost-per-lead ($21,957).

15. AVERGE OPPORTUNITY
SIZE
Refers to a group of opportunities in a pipeline defined
by their revenue average. This metric is used to
understand the health of a sales persons opportunities
compared to a pipeline.
SALES METRICS
Formula: avg opty size = $ total pipeline / #
opportunities
The sales funnel above illustrates several opportunities in the pipeline,
regardless of percentage qualified whose sum ($3,000,000), divided by
the quantity (4) yield an average opportunity size of ($750,000).
$1,000,000
$900,000
$700,000
$400,000

16. PIPE VELOCITY
Sales, opportunity or pipeline velocity refers to the rate
of time that it takes for a deal to move from zero to
close.
Sales velocity can be increased by any of the following:
• Number of Leads,
• Win Rate %,
• Average Deal Size
• decreasing your Average Sales Cycle
ACTIVITY METRICS
Formula: pipeline velocity = [(# of qualified
opportunities)(Win Rate %) (avg. deal size)] / avg
sales cycle
$25k
$100k
$250k $75k
$100k
$200k
$175k
$300k
The above chart demonstrates a pipeline velocity benchmark of 5. This
occurs by counting the quantity of opportunities (8), multiplied by win rate in
green (50%), multiplied by the average deal ($153k), divided by (120 days).
Avg Days by Stage
20 10 15 30 45

17. WEIGHTED OPPORTUNITY
& PIPELINE
Measures the uncertainty of sales opportunities for the
purpose of forecasting sales and revenue by
percentage of sales stage qualification.
SALES METRICS
Formula: opportunity weight = ($ by sales stage)
( sales stage qualification %)
$25k
$100k
$250k $75k$100k $200k
$175k
$300k
Using the previous chart with $1,225,000 in opportunity, we get a weighted
pipeline of ($650*10%) + ($100k*20%) + ($375k*40%) + ($25k*60%) +
($75k*80%), or $310,000, which is the revenue volume expected to close or
that we would forecast in this pipeline.
10% 20% 40% 60% 80%

18. CUSTOMER ACQUISITION
COST
The cost associated in convincing a new customer to
buy a product/service. Do not get this metric confused
with cost per lead as there is a strong distinction
between the two.
CUSTOMER METRICS
Formula: CAC = Time period (total costs of
acquisition / total new customers)
July DM CAC
$
$0
$15
$30
$45
$60
Channel
SEO Yellow Pages Display Email
60
50
20
9
The above graph shows costs per acquisition across multiple direct marketing
channels.

19. CONVERSION RATE
The conversion rate is the percentage of users who
take a desired action. The archetypical example of
conversion rate is the percentage of website visitors
who buy something on the site.
CUSTOMER METRICS
Formula: conversion = converts / total leads
Not Desired
Buy
Add to Cart
Clicks
Views
Sign in
Buy
Add to Cart
Clicks
Views
Guest Check
out
Optimized

20. RETENTION RATE AND
CHURN
The ratio of the number of retained customers to the
number at risk. By contrast, churn is the rate of users
who drop-off from a funnel or subscription.
CUSTOMER METRICS
Formula: retention rate = ((# customers at end of
period - # new customers added in period)/#
customers at start of period)) X 100
Cohort A: Acquired 600 customers, 95% retention rate, lost 5% (30)
Cohort B: Acquired 600 customers, 80% retention rate, lost 20% (120)
Retention vs Churn
0
150
300
450
600
Jan Feb Mar Apr May June Jul
Cohort A Cohort B

21. CUSTOMER METRICS
CUSTOMER LIFETIME
VALUE
The present value of the future cash flows attributed to
the customer during his/her entire relationship with
the company.
Formula: CLV($) = Margin ($) * (Retention Rate (%) /
[1 + Discount Rate (%) - Retention Rate (%)])
$
-100
-75
-50
-25
0
25
50
75
100
Months
1 2 3 4 5 6 7 8
75
50
25
-25-50-75-100

22. NET PROMOTOR SCORE
An index ranging from -100 to 100 that measures the
willingness of customers to recommend a company's
products or services to others. It is used as a proxy for
gauging the customer's overall satisfaction with a
company's product or service and the customer's
loyalty to the brand.
CUSTOMER METRICS

23. THANK YOU.
88
awbrown