Link Insights, Goals, and Effort to reach your performance potential
Organizations will achieve the greatest overall performance boost by taking a holistic approach to Insights, Goals, and Effort.
- Insights keep you on top of what matters
- Goals define direction and alignment
- Priority Tasks link Goals to Effort to increase the likelihood of success
Insight without appropriate action is a wasted opportunity. Gtmhub is the only place where Insights, Goals, and Efforts come together to drive performance to new levels.
Here are some common key performance indicators (KPIs) which any SaaS CEO should be intimately familiar with:
- Lifetime Value (LTV)
Calculation: Average MRR / Monthly Customer Churn
- Customer Acquisition Cost (CAC)
Calculation: Sales&Marketing $ / Customers Acquired
- LTV / CAC ratio
- CAC Payback time
Calculation: CAC / Average MRR
- Monthly Recurring Revenue (MRR)
Calculation: Sum of MRR of All Active Customers
- Average MRR
Calculation: MRR / Number of Customers
- New MRR
Calculation: Sum of MRR of All New Customers
- New Customers
Calculation: Number of New Customers Added
- Expansion MRR
Calculation: Sum of MRR Added to Existing Customers
- Monthly Customer Churn
Calculation: Number of customers who terminated
- Monthly Revenue Churn
Calculation: Sum of MRR for customers who terminated
Where do these KPIs live?
In our experience – in several places, including the CRMs systems, spreadsheets, accounting systems, and so on.
In most cases, KPIs are:
- out of date,
- take a long time to produce,
- and provide just a snapshot view, with poor visibility outside of the board or highest level executives.
There is a better way.
With Gtmhub, KPIs are real-time, always up to date and available for analysis and action by anyone subject to permissions. How do we do this?
- We connect to ANY business system
- We deliver pre-defined KPIs out of the box, or we tailor KPIs just for you.
- We make the KPIs available via our beautiful and easy to use Insightboards.
Goals provide direction, motivation, encourage learning and persistence.
The drivers of goal performance when setting goals is Goal Difficulty, and Measurement. In other words, we perform better when we set stretching goals, and when we measure our progress and success.
If you have experience of working with goals, then you may be familiar with the SMART method of setting goals. SMART goals encapsulate the best practices for goal setting in a memorable and practical way:
S – Specific. The goal must be defined simply and specifically.
M – Measurable. The goal must be quantifiable and measurable.
A – Achievable. The goal should be stretching, but achievable.
R – Realistic. The goal should be achievable given available resources.
T – Time bound. The goal should have a fixed deadline.
In the world of Objectives and Key Results (OKRs) you set quarterly objectives, with the progress and ultimate success measured by several key results.
To set a good objective, ask yourself this question:
What do I want to achieve this quarter?
The answer could be growth related, as is very often the case. As simple as
Then ask a follow up question:
How will I measure progress and success?
For a growth objective, you could choose from several quantitative measurements, such as
- Sales Bookings
- Average Order Value
- Number of Users
- and so on.
You will end up with an OKR that looks like this:
- Objective: Accelerate Growth
- Key results:
- Increase LTV to $30,000
- Get CAC below $8,000
- Increase Average Order Value to $12,000
- Time frame: Next 3 months
In most cases, organizations would start to run into trouble at this point.
With KPIs living in one place and Goals in another, how do you keep them synchronized?
With Gtmhub it is a matter of a few clicks to tie a KPI (for example LTV) to an OKR in order to always have an accurate representation of progress against the stated Objective.
Effort: The missing link
The final piece of the puzzle is to now direct your best effort towards achieving your OKRs.
As the owner of the above OKR, I can now set about making an impact by taking immediate and significant action.
I’m going to define the Priority Tasks, or P1 Tasks, in order to make progress. Priority Tasks represent what one believes will have the greatest impact on the OKR. Typically, you set and review Priority Tasks on a weekly basis.
For the first week of my new OKR cycle, I decide to set out to complete the following tasks:
- Schedule a meeting to review MRR, Churn data for the past 12 months.
- Schedule a meeting to review Marketing Campaign ROI for past 12 months.
- Schedule a review of sales discounting, and product bundling practices
These are my priority tasks. They will get me started, and as I make progress on these, more tasks will emerge.
Tasks are operational, and fluid. The operational focus may shift during the OKR period, as you learn more about what will drive positive changes in the Key Results, and therefore it is not advisable to map out tasks for longer than 1-2 week period at the time.