SaaS METRIC OF THE WEEK: LVR (Lead Velocity Rate):LVR is the lead growth rate of qualified leads per month. This metric provides a clear understanding of a businesses’ future revenue and growth. (see #2 below for why this important in 2021). Setting a goal to increase LVR by 25% for example will also enable you to equally increase revenue generated for your business.
REVENUE: For many of you financial end-of-year is fast approaching (and for some, it's already passed) so, question: How Dynamic Is Your Revenue Plan this year? In 2021 rapid acceleration away from everything 2020 is the best response. A pre-Covid revenue strategy this year could stall or even reverse your growth aspirations, so it's time to pull operational techniques from other departments (ie your Dev squads Agile ways) to create a more dynamic revenue plan - take a good read of this article from SBI for hot tips on avoiding poor Sales-based strategic planning. It even comes with an (OK-ish) downloadable planning tool (which I took the liberty to snag and sacrifice my email address for you).
OPEN STARTUPS: I love this - it's absolutely one for your bookmarks so you can continually check in overtime (or even join the team). Most Startups are very secretive about their metrics but over the last 5 years Baremetrics has been chipping away at this industry norm to get SaaS companies to be more open about performance; Theorizing that radically transparency can actually be beneficial - it works for me to compare and contrast my own business performance.
COGNITIVE LOAD: This is a great one for your tech dictionary and one to always keep in front of mind when designing any kind of user experience. Cognitive Load is basically the mental effort required every time you experience a new app or visit a website. It's the process of learning the navigation, layout, pages, buttons, etc: Your brain has to learn how to use the site while keeping track of the reason you came there in the first place and may begin to slow down or even abandon the task at hand when it receives more information than it can handle. Take a read of this article on ways to design experiences to minimize cognitive loads. Super interesting!
FUTURE 50: Three years ago, Fortune Magazine teamed up with BCG to create the Future 50 to try and identify companies with the best long-term growth potential. It's a cool list as it's all mainly tech (Last year’s list produced a cumulative shareholder return of 71%) - explore away.
CASE STUDY: Last week's Xero case study was a popular one - so I'm continuing the case-study theme this week with New Relic. I was one of their trial friends and family customers way back in their very early days (just over 10 years ago) when they had $0 and today they are now at a whopping $650 million ARR!!!!
SALES: Getting to the point where you may need to hire a head of Sales? Tomasz Tunguz has three questions to ask them and Jason Lemkin has a list of 48 Types of VP Sales to make sure you know which one is the right one to hire for your business.