Gregory Shepard breaks down the essential KPIs for sales and marketing: CAC, ACV, growth rate, CAC-to-LTV ratio, and time-to-revenue. He recommends splitting metrics by department, with marketing tracking campaign spend and traffic, sales tracking demos and revenue growth. Map every KPI to a stage in the customer journey for actionable insight.
Chapters
Sales and marketing KPIs. This is a, is a big one. So obviously you always have your actual plan, better or worse numbers. So you need to make sure you have those. You need to make sure you have cost of, right? So cost of sales and marketing as a percentage and as a dollar amount, CAC, your ACV is your annual contract value. So how much do you make on the customer over a 12-month period of time? Your growth as a dollar amount, your growth as a percentage, your CAC to LTV revenue ratio. You want to make sure that you have your time to revenue and all of those different data. So contact to contract cycle times, you know, so I've covered this a lot, so you guys got that. And then you want to make sure that you break it down by functional areas. So every, every one of these functional areas have a sub, so a department or whatever you want to call it. So in sales and marketing, you have marketing and then you have sales. So for marketing, it's obviously cost of, it's the campaigns that have been run, it's the traffic, the abandonment rate, free users, and the cost of marketing. For sales, you could have, you know, partnerships, demos, revenue growth as dollar percentage, and customer growth as a dollar and a number amount or a percentage and a number amount. So you get the idea, you can build your KPIs based on your business, but it's It's very important to make sure that you think about the journey of the customer on all of the KPIs. You're thinking about the journey of the customer. So where does the customer start and where do they end and all the different points that they interact with your business so that you can build KPIs that are going to give you the result that you want at the end.
