Leading vs lagging Revenue Metrics — Ray Rike // RevOps Squared

Ray Rike, RevOps Squared’s Chief Evangelism Officer discusses lead and lagging revenue indicators. We dive deep into key performance indicators and what they signal for your business. We also look at how different organizations track key metrics depending on their specific business goals.
About the speaker

Ray Rike

RevOps Squared

 - RevOps Squared

Ray is Chief Evangelism Officer at RevOps Squared

Show Notes

  • 01:16
    What is NDR and why is it important?
    NDR which stands for Net Dollar Retention is the number one and highest correlated SaaS metric. It requires an in-depth analysis of the same cohort of customers across a given period and noting any change in ARR within that period and the factors that could have resulted in that change.
  • 02:48
    What are the leading indicators that we have to pay attention to so we can make good directional decisions for our businesses?
    RevOps has a leading indicator for each letter of RevOps.
  • 04:00
    How can we make our revenue operations more efficient?
    There are several ways of increasing revenue operations efficiency. These include; streamlining the goals and duties of sales development representatives, measuring the quality of the data being used by the sales team, and measuring the effectiveness of all activities being undertaken by the sales and marketing team.
  • 06:33
    How do businesses become best in class in their revenue operations?
    Simply mapping out your processes and looking at who is responsible for each stage of the customer journey. This way you can find inefficiencies and work to correct them.
  • 08:00
    What are some wrong leading indicators that revenue leaders tend to focus on?
    According to RevOps, the most overly focused metric is the number of leads or number of marketing qualified leads. In an efficient process, the conversion rate is more important than the number of leads.
  • 10:08
    Different organizations have different ways of determining what a lead equals. How can this be standardized?
    Marketing and sales teams should work together to determine the attributes of a marketing qualified lead. Each company will always be different.
  • 12:30
    What leading indicators would RevOps recommend to PLG businesses?
    A PLG business would primarily focus on product qualified lead (which is similar to marketing qualified lead), and activation rate.
  • 14:20
    What are the metrics businesses should focus on when looking at account based strategies?
    For businesses with account based programs, the first thing to determine is whats a marketing qualified account and whats a sales qualified account. The go-to-market strategy also has to be aligned between the marketing and sales teams.
  • 17:38
    Are different metrics recommended for different ABS programs?
    The most critical thing to measure in a strategic account program is your stage-by-stage conversion rate and monitoring where there are bottlenecks and gaps.

Quotes

  • “NDR, which stands for net dollar retention is now the number one and highest correlated SAS metric to enterprise value to revenue multiples” Ray Rike

  • “From RevOps research, weve found that sales development representatives spend less than 50% of their time doing outbound prospecting” Ray Rike

  • “I think that's where we should stop it with marketing ROI is how much pipeline, how many qualified opportunities and how much revenue am I driving per marketing dollar invested.” Ray Rike

  • “The most important thing is that marketing and sales together determine the attributes of a marketing qualified lead” Ray Rike

  • “Only about 35% of B2B SaaS companies have a formalized account based program” Ray Rike

  • “13% of B2B companies have an account based platform in place, and research hot off the press from last week shows it's going to double in 2022. 13% to 14% more B2B SaaS companies are gonna buy an account based platform because they're finding the account based opportunities on average are 40% larger.”

About the speaker

Ray Rike

RevOps Squared

 - RevOps Squared

Ray is Chief Evangelism Officer at RevOps Squared

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