There are many metrics in measuring B2B success. In this episode, Darrell Amy brings us some of the best metrics for B2B companies.
Getting to know Darrell Amy
Darrel Amy helps companies grow their revenue. He started his career in 1993 and was in the office technology world. He got involved in sales training and launched a sales training company in 2004. Darrell has already helped thousands of people through his sales training programs for global technology companies. He’s also been involved in the digital marketing journey.
Growing revenue for B2B companies
There are two metrics for growth:
1. Net new clients
Net new growth is the number of clients you have this month versus last month. The measurement for cross-selling is revenue per client. Different companies, sales teams, and different industries have sales reps who are good at either netting new clients or cross-selling. Your goal is to drive reasonable growth in each area simultaneously to get magical things happening.
For one of their clients, Darrell’s company grew both simultaneously and was able to increase their revenue within 3 years. There’s only one metric to know: How many clients do I have?
These are the two drivers of revenue: The number of clients you have and the revenue per client. These are the things you need to track. If you look at the business from its most basic levels, you’re left with people and processes. Every business is a combination of the two. Sales teams need to learn the processes after the sale.
The importance of knowing the process
It’s important to do periodic business reviews and put a process in place to do it. The lack of cross-selling metrics is a big red flag for a company. There are so many opportunities inside your client base, especially your ideal clients. Your ideal clients are clients that are a perfect fit for the business. They are the ones who will buy everything that you offer and they represent your business for you. Most companies have the 80/20 rule, where 80% of their revenue comes from 20% of their clients. When you identify what this 20% looks like, then you’ll be able to identify your ideal prospects. Get close to your ideal clients, write down their characteristics, and hang out with them. Find out what they really want.
Originally published on The Sales Evangelist.