Data-Driven Optimization
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After we finish the “onboarding” stage of our RevOps implementation and enter the “ongoing” phase, we will start analyzing your KPIs and building a detailed Sales Analytics Framework, focusing on measuring results, optimizing campaigns, and bringing predictability to operations.
As a "Go-to-Market (GTM) Engineering" agency, one of our implicit objectives is to help you evaluate the efficiency of your sales operations using GTM strategies compared to traditional approaches like SDRs and cold calling. Our assumption is that GTM strategies are significantly more cost-effective. We will, therefore, use descriptive and predictive sales analytics to test this hypothesis and make data-driven decisions.To achieve these goals, our approach to sales analytics will be divided into four levels of operation, as you can see in the topics below.
For an in-depth understanding of the “Sales Analytics & Data-Driven Optimization,” please read this article.
The objective is to continuously optimize campaigns – both in Outbound Outreach Sequences and Inbound Paid Media Campaigns, based on AB Testing of the key elements of our campaigns: value-offer, target audience, and the copy angle. The metrics we will use are: email open rates, reply rates, and booking rates for outbound, as well as CTR and CPC for inbound paid media campaigns.
The goal is to compare the performance of the various acquisition channels (outbound outreach sequences vs inbound lead magnets or paid media campaigns) to identify which ones are most effective, so we can prioritize investments and optimize our Return on Investment (ROI). To evaluate the efficiency of these channels, we will use the Cost per Acquisition (CPA) as our main KPI.
To assess the overall viability of your sales program, it's essential to evaluate the total cost of your sales team in relation to the number of meetings they can schedule. This evaluation is conducted using the LTV/CAC ratio. An ideal LTV/CAC ratio for most software companies is 3.0x, as it reflects a sustainable and reasonably profitable growth model. A ratio below 1.0x is unsustainable.
The last step is to accurately forecast the revenue generated for every additional dollar invested in sales operations, bringing predictability to your future cash flow. Since we know our Customer Acquisition Cost and how many leads we need to acquire to generate one more deal, we can successfully predict our future revenue based on how much we will invest in the next 24 months.
