Uncover the Key Metrics That Drive Success for Your Business with Divvy's CRO

Name: Uncover the Key Metrics That Drive Success for Your Business with Divvy's CRO
Uploaded: 2023-09-28T14:15:00+00:00
Duration: 46 s
Channel: Jason M. Lemkin
Description: In this segment, the speaker (the CRO) illustrates how individuals and functions within a company often track several performance numbers—such as…

28 Sept 2023 · 1 min

Watch on YouTube

0:46

In this segment, the speaker (the CRO) illustrates how individuals and functions within a company often track several performance numbers—such as expansion revenue, Net Revenue Retention (NRR), and Net Dollar Retention (NDR)—each tied to their own responsibilities. However, he stresses that the organization as a whole must agree on a single, clearly defined North Star metric that serves as the primary driver of business outcomes. Typical examples of North Star metrics include Annual Recurring Revenue (ARR), product usage volume, or the acquisition of new logos. This overarching metric aligns teams, focuses strategic decisions, and provides a common reference point for measuring success.

Chapters

So here's what it looks like in practice, okay? In practice, people can have their name next to several different numbers. For example, a VP of customer success, like let's say they have an expansion number that has their name next to it. Let's say that they have an NRR, an NDR number that their name is next to it, and you're going to have multiple, but you do have to like clearly define the north star for the entire organization. So most of the time, That's like an ARR number. That's a usage number. That's new logos. What is the model driver for your business? And that is the North Star.