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Best Practices Customer Analytics Customer Engagement HubSpot Interview Marketing potential buyer RC-SaaS Best Practices RC-SaaS Customer Analytics sales 2.0 top of funnel

Top-of-Funnel Strategy

HubSpot Tip

Another tip from VP sales at Hubspot Mark Roberge at the Sales 2.0 convention re top-of-funnel strategy.

Mark recommends on keeping the top-of-funnel as wide as possible and worry about the filtering and the quality further down at the funnel.

Most companies don’t know what type of a customer will convert and this will allow tracking a whole bunch of data that can be analyzed later.

However, the danger in that strategy is when passing all those customers to your sales team, it could lead to ineffectiveness and waste of their time so it is recommended to use filtering at this stage so that the most quality stuff is being transferred.

As mentioned in my previous post: “Top 3 Metrics to Measure Customer Engagement“, there are ways to set your filters by. Choosing the right metrics and measuring them correctly will assist in screening out the non potential buyers and keep the high potential ones is essential to any successful SaaS business.

Once the data is gathered and there are more and more leads you can continue optimizing this process.

Tomorrow I will publish another tip by Mark Roberge regarding how to pick your sales model – zero touch vs. low touch vs. high touch.

To read the full transcription of the video, click here

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Video Transcription:

Mark Roberge. VP of sales at Hubspot.

I highly recommend at the top of the funnel keeping it as wide as possible and worry about the the filtering and the quality further down to the funnel, and the reason being is especially when you are stunning out and most people are starting out with inbound. You actually have no idea who’s going to work out, what type of marketing tactics are going to work, what types of buyers are going to actually work well in your funnel, so keeping it why it is, possible allows you to capture a whole bunch of data to see what actually progresses through.

The danger in that strategy comes when you pass everything to the sales team, because that can lead to a lot of ineffectiveness in recent time by that sales team so with that process you want to have a lot of filtering to make sure that the most quality staff is actually getting down to the sales team.

And as you gather data and gather more and more leads, you will continue to optimize that process.

Categories
Business Insights customer acquisition cost Customer Life Time Value Customer value Increase Conversion Rate penetration rate potential buyer Response

Treat Customers Based on Their Values

in Scott Gruher’s blog post on “Go to Market Strategy: How Much are Your Customers Worth?”, his recommendation is to treat customers based on their values.

He suggests measuring two basic metrics: CLTV (Customer Life Time Value) and CAC (Customer Acquisition Cost). Those metrics should both be measured accurately, as based on the outcome, a company should decide how to treat its prospects/customers:
Low CLTV would mean to use a less expensive resource to handle prospects/customers (i.e. non-direct contact such as email).
On the other hand high CLTV would mean considering a one-on-one contact with the prospect/customer.

This principle would increase conversion rates from prospects and maximize penetration rates withing current customers.

As for the CAC, Scott recommends focusing on existing leads as it more profitable to cross-sell and upsell an existing customer than acquiring a new one.

I agree it is much more effective to reach out customers from a dedicated list.
I also agree, as posted in my previous post, that CLTV and CAC are crucial metrics which should be measured accurately in order to spot potential buyers.
However, CTLV and CAC are not the only metrics a company should measure – there are other metrics (such as churn rates, account activation rate, account usage statistics, etc.), that should be taken under account in order to perceive a business whole picture.

In addition, in order to reach the right conclusions out of those metrics and know where to focus on, it is essential to wisely choose tools that would help a business to both measure and analyze its data correctly.

 

 

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