Attempting to become best-in-class revenue generator takes a lot of effort. Before you commit to an initiative, determine if the gain is worth it. But don’t make the mistake of comparing yourself to yourself over time against of irrelevant out dated metrics.
- Investment Benchmark- using the percentage of revenue method, determine if you are properly funding the product team, marketing department, and sales organization.
- Customer Lifetime Value- calculate the revenue and profit contribution of each customer type and compare your numbers to a peer group to determine if you are monetizing your customers fully.
- Customer Acquisition Cost- calculate how much it costs to acquire a customer for each product, market segment, and sales channel and compare your numbers to a peer group to determine if you are efficient.
Next, find out more about Phase 4: Talent Assessments.