What to measure.
WHAT MATTERS MOST
Conversion between stages Time to close Average deal value Cost of acquiring a customer How long customers stay
WHY THAT LAST ONE BELONGS HERE
Selling to people who leave quickly is not selling.
WHAT ACTIVITY METRICS ARE FOR
Diagnosing, not judging.
WHAT THEY INCLUDE
Conversations held Proposals sent Follow-ups made
WHAT TO AVOID
Managing to activity alone.
WHY
It produces volume without quality.
WHAT CONVERSION TELLS YOU
Where the process fails.
WHAT LOW EARLY CONVERSION SUGGESTS
Poor targeting or poor approach.
WHAT LOW LATE CONVERSION SUGGESTS
Poor qualification, or unresolved risk.
WHAT LONG SALES CYCLES SUGGEST
Complex buying, or insufficient urgency.
WHAT TO CALCULATE
What it costs to acquire a customer.
HOW
Total selling cost divided by customers won.
WHY
It determines what you can afford to spend.
WHAT TO COMPARE IT WITH
What a customer is worth over their lifetime.
WHAT A POOR RATIO MEANS
The model does not work, regardless of effort.
WHAT TO REVIEW MONTHLY
The figures, and what changed.
WHAT TO AVOID
Measuring everything.
