The two most important, neglected sales metrics

From Jason Lemkin, in Jason Lemkin: The Right Sales Metrics for Your SaaS Startup:

There are two metrics aren’t discussed enough. The first is lead velocity rate. What rate are your qualified leads growing month over month? Your MRR growth is great, but really that just tells you about the present – how you’re doing now. But if your leads are growing faster than your revenue, I can see the future growth. Being able to quantifiably track the velocity of qualified leads is going to be your best possible indicator as a CEO of where you’re going to be in the future.

The second metric will help founders get from initial traction to scale: understanding revenue per lead and how that works across your company. Once you have a repeatable set of leads and lead velocity, you want to drive up the revenue per lead. That’s an area where you can help the sales team by measuring each individual rep – what’s their revenue per lead? How many leads can you give them before their productivity declines? Why do some reps make certain types of leads more productive than others? The earlier you can do this post-traction the better. Leads are precious for a long time in startups, and if you can get 20 percent more out of each lead, that’s magic. But if you don’t measure it down to the individual rep level and you just look at MRR, you’re missing an opportunity to improve things.

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