Why Focusing On 'Worth Your Time' Metrics Is Key to Revenue Growth

Hey there, sales leaders! 👋 Let’s talk about sustainable revenue growth A.K.A The Science of Revenue Growth. It’s not just about chasing big numbers that look good in reports (we’ve all been there!), but about building a solid, efficient revenue engine that can withstand market shifts and keep delivering results.

In the past, we saw a lot of businesses adopt the "growth at all costs" mentality, pouring resources into aggressive sales tactics and chasing vanity metrics. While this approach might show initial results, it's often fleeting and ultimately unsustainable. Customer acquisition costs skyrocket, customer experience takes a backseat, and the whole structure starts to crumble. Sound familiar?

What’s the alternative? Enter RevOps, or in other words, The Science of Revenue Growth. RevOps is all about taking a structured, data-driven approach to revenue generation, much like a well-oiled manufacturing process.

Ditch the Vanity, Embrace WYT (Worth Your Time) Metrics

One of the core principles of RevOps is focusing on what truly matters, what’s actually “Worth Your Time” (WYT). This means shifting our focus from vanity metrics to metrics that actually drive improvement and sustainable growth.

Think about it: Are you celebrating a huge spike in website traffic if none of those visitors convert into leads? Are you patting yourself on the back for a mountain of MQLs (Marketing Qualified Leads) if they’re not turning into actual paying customers?

Those are vanity metrics - they might look impressive, but they don’t tell the whole story.

To build a high-performing revenue operation, we need to get granular and analyse our business through three key lenses:

• Metrics That Matter: What data points across your business truly reveal areas for improvement?

• Mechanisms That Matter: Which processes and tactics will actually drive the improvements you're aiming for?

• Moments That Matter: What are the critical events in the customer journey that have a significant impact on conversion, retention, and expansion?

Metrics That Matter: Going Beyond the Surface

Instead of getting lost in a sea of vanity metrics, RevOps encourages us to identify the core metrics that directly correlate to revenue growth. These metrics can generally be categorized into three buckets:

• Volume: Measures the quantity of output or activity. Think number of leads generated, website visits, or sales calls made.

• Time: Assesses the duration required to complete tasks or processes. For example, how long does it take to convert a lead into an opportunity, or how quickly are deals closing?

• Conversion: Evaluates the rate at which targets are achieved. This could be your lead-to-MQL rate, MQL-to-SQL rate, or overall win rate.

By tracking and analysing these core metrics, we gain valuable insights into the efficiency and effectiveness of our revenue engine. We can then pinpoint bottlenecks, optimise processes, and make data-driven decisions to maximise growth across every stage of the customer lifecycle.

Mechanisms That Matter: The Levers of Growth

Within Six & Flow's sales process, we deploy various mechanisms to drive deals forward. For example, we might:

• Bring in a solutions architect to provide technical expertise.
  

• Offering free assessments or audits to demonstrate value and build trust.
  
  

• Delivering personalised demos that address the specific needs of stakeholders.

Each mechanism requires resources and comes at a cost. So, it’s crucial to continuously evaluate their effectiveness and make sure they’re generating a positive return on investment.

Ask yourself:

• Is this mechanism contributing to revenue generation?
  
  
• Can we track its impact on our core metrics?
  
  
• Can we optimise it to improve efficiency and effectiveness?
  
  

By fine-tuning these mechanisms, we can amplify the impact of our efforts and drive significant growth over time.

Moments That Matter: Capitalising on Critical Events

Along the customer journey, there are key moments that significantly influence buying decisions. These moments represent opportunities to make small improvements that yield substantial results.

Consider these examples:

• Lead Qualification: Implementing a robust lead scoring system to prioritise high-potential leads. This ensures your sales team is focusing on the most promising prospects.

• Sales & Marketing Alignment: Creating a seamless handoff between marketing and sales to maintain momentum and expedite the sales cycle.

• Onboarding: Providing exceptional onboarding experiences to reduce early churn and set the stage for long-term customer success.

By identifying and optimising these critical moments, we can proactively influence customer behaviour and maximise our chances of success.

The Bowtie Model: A Holistic View of Revenue

To effectively apply the WYT framework, it’s helpful to visualise the customer journey through the Bowtie Model. Unlike the traditional funnel, which focuses solely on acquisition, the Bowtie Model encompasses the entire customer lifecycle, including both pre-sale and post-sale activities.

The Bowtie Model comprises two key phases:

• Land: This phase mirrors the traditional funnel, encompassing activities like lead generation, lead nurturing, and sales conversion.

• Expand: This phase focuses on post-sale activities such as customer onboarding, retention, expansion, and advocacy.

By adopting the Bowtie Model, we shift from a transactional mindset to a relationship-focused approach, prioritizing customer lifetime value over short-term wins.

Stop Guessing, Start Measuring

RevOps is all about making informed, data-driven decisions. Instead of relying on gut feelings or outdated assumptions, we need to measure everything, analyse the data, and adapt our approach accordingly.

This requires the right technology stack, tools that provide real-time insights and automate tasks to improve efficiency.

By embracing a culture of continuous improvement, constantly evaluating our metrics, mechanisms, and moments, we can build a revenue operation that’s not just scalable but also sustainable and durable.

Remember, sustainable revenue growth isn’t about chasing vanity metrics. It’s about focusing on what truly matters - the metrics, mechanisms, and moments that are Worth Your Time.

Are you ready to ditch the vanity and embrace WYT? 💪