Episode 25: How to Measure and Improve Lead-to-Cash

Try to get to 20% increase in customer revenue — which may include additional seat licenses — each year. And try to get 2% of your paying subscribers to increase what they pay each month.

Money flows through a business in predictable ways. If you understand how revenue, expenses, receivables, and credit work, you can ensure that you continue to have enough Purchasing Power on hand to continue operation and maximize your available options. The Cash Flow Cycle describes how cash Flows (discussed later) through a business. Think of you

Once your theory is in place, start funneling leads to Sales according to the proposed plan and measure lead conversion success. If lead conversion is remarkably low for a given buyer persona, consider moving the “pass to Sales” threshold to the right in the matrix. Require Marketing to nurture the buyers further before passing them to Sales. If th

The problem with relying on revenue as a measure of progress is that revenue is generally a longer customer life-cycle event, which can mean having to fly blind for a really long time.

With the implied dollar values of leads established, the Marketing SLA was no longer based on a raw number of leads, but instead on an aggregate implied lead dollar value.