CFOs have experience leading finance organizations but they hesitate to inject themselves in sales and marketing conversations.
Below are 4 areas where a CFO viewpoint will improve sales and marketing performance.
- Revenue Growth vs. Customer Segment Growth is my revenue growing on pace with the customer segment? is this sustainable source of growth in the years to come?
- Customer Acquisition Cost (CAC) vs. Customer Lifetime Value (CLTV): Look at the ratio of CLTV:CAC. The higher the ratio, the higher the Sales and Marketing ROI. For customers that require more resources to acquire, their CLTV should be higher. If this is not the case, you should not be pursuing these customers.
- Pricing vs. Volume :Plot price relative to volume for each of your customers. What price is a customer paying for 1K units? Is it consistent or is there a lot of variability across customers? If there is a lot of variability across customers, listen to the market. It may be telling you that some customers are less price sensitive than others. Also cut this data by rep. If there is a lot of variability by sales person, you may have a talent/skills issue.
- Sales Rep Comp vs. Territory Growth: sales Rep Compensation is the biggest expense in the sales budget . You should not look at territories by size. Just because a territory is big, does not mean the rep deserves extra compensation for managing it. It’s the growth of a given territory that should determine their compensation.
