3 B2B Sales Metrics You Need To Know Before Your Next Meeting

The time a sales professional spends doing their homework before the call is the best determinant of productivity and closing sales rates. B2B sales is still a numbers game, one that is increasingly driven by sales metrics tracking and analysis.

There are three sales metrics that deserve your time and attention before meeting a new client.

1. ROT (Return on Time spent if the sale closes)
2. LTP (projected Lifetime Profitability of the client)
3. IC (what Immediate Challenges are facing their industry)

DEFINING THE 3 METRICS

Here is an outline of the three key metrics: Return on Time spent, Profitability, and Industry Challenges.

RETURN ON TIME (ROT)

Successful selling requires a thorough evaluation of your priorities. Which prospects deserve the most nurturing? The answer begins with SPH (sales per hour). SPH=Avg GMS (gross monthly sales) / hours devoted per prospect. Of course, your daily tasks rarely break out that simply, meaning your answer will probably be a range. SPH is both a benchmark that you can work to improve and a red flag when measured against ROT. These are two sides of the same coin—SPH is historical; ROT is predictive. This changes the central problem from guesswork to science.

LIFETIME PROFITABILITY (LTP)

LTP is the point at which dependable customer revenue can offset not only their own acquisition costs, but also the cost of lost customers. According to several recent metrics, B2B companies on average hit LTP when the lifetime value (LTV) of the customer reaches three times their average customer acquisition costs (CAC). (LTV = 3 x CAC). Market leaders like Salesforce are able to hit a much more comfortable multiple like LTV = 5 x CAC. In fact, these studies also suggest that startups often fail because their aggregate CAC outweighs the LTV of their base. KISSmetrics used Starbucks as their case study on relevant stats surrounding a healthy LTV.

INDUSTRY CHALLENGES (IC)

This requires research, not calculation. Use social media, especially Twitter and LinkedIn, to find out what stories the prospects are following, what articles they are sharing and what topics prompt them to comment. Other good indicators are the breakout session topics at upcoming conferences in their industries. Come up with at least three top challenges and what you can do about them. Even if your assessment is wrong, the prospect will be happy to give their opinions and move on to what their real pain points are.

THE 57 PERCENT RULE

The prospect is probably 57 percent of the way through the sales process before they even talk to you. They've gotten recommendations and referrals already and they've been coming to their own conclusions with online research. At the point you meet with them, it is normally a question of whether they trust you more so than they information you give them about what you sell. Do your homework and prioritize who you meet with based on their projected ROT and LTP. These are the numbers that will matter most for reaching and exceeding your quota.