Which business metrics and KPIs should we focus on?

It depends on 2 criteria: 1. What do you want to measure and 2. When?

First, you have performance metrics such as revenues, net profit, gross margin, ebitda, sales growth vs. last year, # of new customer acquisitions, etc.

Then, you have process metrics like conversion rates (e.g. win/loss), Sales cycle length (e.g. quote-to-close leadtime), pipeline values per stage, where-do-you-lose, etc.

Next, there’s the customer-focus metrics known as customer lifetime value (CLV), customer acquisition cost (CAC), retention or churn rates, net promoter score (NPS), etc. 

Finally, you also have individual/team activity metrics IF and only IF the above are falling short …

Pick 3 out of the above list based on your company type of business (e.g. SaaS) and maturity stage

How can we predict our future Revenues more accurately?

Put conversion rates and lead times along the end-to-end Sales cycle. By doing so and as an example, you’ll be able to predict that 1€ in stage 1 will bring 8 cent after 11 weeks, 1€ in stage 2 will generate 25 cent after 9 weeks, 1€ in stage 3 will already deliver 37,5 cent after 5 weeks and 1€ in stage 4 will finally bring 75 cent in 2 weeks, because your win/loss conversion in stage 4 is 75% and it takes you 2 weeks for handling potential showstoppers, negotiation and closing. The icing on the cake is when you also control the end-to-end Buying cycle by leading each of the stakeholders towards a consensus in your favor. 

Has Sales become an exact science, like maths?

We’re getting close! This is the professional mission of Bruno. Measure performance, Sales cycle process and customer focus, and keep track of their evolution. Always work on the weakest link(s). By doing so, you get more end-to-end control over the customer journey leading to forecast accuracy and predictable growth