Key success metrics for measuring GTM (Go-To-Market) performance:
- Prospects: (Prospective Leads) Contacts that fit within your target audience parameters that are likely to become leads
- MQL: (Marketing Qualified Leads) Contacts and/or prospects that have engaged or interacted with your company and are actively seeking for additional information.
- CR1: (MQL Conversion Rate) The percentage of prospects accounts convert into MQL
- T1: (Marketing Time) The amount of time a prospect needs to be in the marketing funnel before they become a MQL
- CPL: (Cost per Lead) The average marketing spend required to convert a prospect into a MQL
- SQL: (Sales Qualified Lead) A contact that has engaged with sales; ie. participated in a discovery call or product demo
- SQL Creation: The number of SQL’s that are created in a given week or month by rep
- CR 2: (Conversion Rate 2) The percentage of MQLs that convert into SQL’s
- T2: (Biz dev time) The amount of time needed to nurture a SQL to become a SQP
- Response Time: The time that elapses between form submission and outreach
- TRV: (Deal Size) The value of the deal expressed in ACV based on contract and or TRV (Total revenue value) which is (SaaS fees +Transactions Fees + Credit Fees)
- SQP: (Sales Qualified Pipeline) A contact that has committed to evaluation, agreed to make a decision, and has an executive decision marker involved.
- CR3: (Conversion Rate 3) The percentage of SQLs accounts converted into SQP
- T3: (Active Pipeline Conversion) The amount of time it takes to get alignment on executive involvement and decision timeline
- Closed Won: The number of companies that have signed a contract or purchased the product
- CR4: (Win Rate) The percentage of SQP opportunities that are won
- T4: (Sales Cycle) The amount of time from SQP to closed (won or lost should be expressed differently)
- CR5: (Conversion Rate 5) The percentage of closed-won customers that go live with the product and don’t hit any adoption breaking problems
- T5: (Time To Go Live) The amount of time it takes from closed won deals until new customers have implemented the product or the engagement has started.
- CPA: (Cost per Acquisition) The total average marketing and sales cost required to close.
- ACV: (Annual Contract Value)The total annual value of a customer
- Churn: The number of customers that choose not to renew their subscription or engagement upon completion of initial contract
- CR6: (Churn Rate) The percentage of closed won customers that choose not to renew their subscription or engagement
- T6: (Churn Time Frame) The amount of time from initial contract signature to cancelled/no renewal of agreement
- Expansion: When an existing customer buys more features, capabilities, or offerings beyond what was included in their initial agreement
- CR7: (Conversion Rate - Expansion) The percentage of existing customers who increase their engagement, buy additional features, or purchase other offerings.
- T7: (Expansion Time Frame)The amount of time from the original contract to the new expansion agreement
Tools that help you measure these metrics:
Gong “Gong is the cutting edge of sales analytics and revenue forecasting software. It enables your sales teams to focus on selling instead of data entry, provides managers a wealth of data and insights, and enables smarter revenue forecasting.” Gong G2 Review Gong Website
Salesforce “Salesforce helps businesses of all sizes grow revenue, automate tasks and make smarter decisions so you can grow your business faster, from anywhere. Salesforce Sales Cloud offers: Lead Management, Account & Contact Management, Sales Opportunity Management, Pipeline & Forecast Management, Workflow Rules & Automation, Customizable Reports & Dashboards, and Mobile Application.” Salesforce G2 Review Salesforce Website
Hubspot “HubSpot is a CRM platform with all the software, integrations, and resources you need to connect marketing, sales, content management, and customer service. Each product in the platform is powerful on its own, but the real magic happens when you use them together.” Hubspot G2 Review Hubspot Website