Modules
Inputs and Calculations Behind GTM Goals
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Transcript
Hi. I'm Brian Kreutz from the Playbooks team here at RevPartners, and we're gonna continue talking about go to market goals. In this video, we're gonna talk about the inputs for the go to market metrics and then how to calculate based on the goals. All of the math checks out so that different levers that you pull up on or down funnel will drastically affect your goals. And then once you set your goals, you can track the actual goal to then track goal attainment. As a reminder, we're basing our go to market goals based on our customer journey on the recurring revenue performance model. So the key parts of our customer journey from sessions and leads at the top of the funnel all the way through new customers in the bottom of the funnel are how we're gonna set the go to market metrics that fill out our go to market goals. The first step in go to market goal setting is going to be looking at the inputs and figuring out the outputs. You can use a template like this to simplify the math here so that you can see exactly what changes you make top of funnel that'll affect changes bottom of funnel and vice versa. So this template isn't quite filled out. Let's go ahead and fill out and go to a a filled out template. So here we have all of our go to market metrics, and these will become our go to market goals. So we have the volume metrics here, leads, MQLs, SQLs, qualified deals, and closed won. And then we have conversion rates in between, and the conversion rate is just taking, um, the denominator of the of the furthest down metric and dividing it by the the top one, that becomes your conversion rate. So here, our very first go to market goal is going to be leads. And in this quarter, we're going to forecast 1,219 leads. We're going to forecast a 35% conversion rate. This will be the goal for that converge rate between leads and MQLs, which means that we need to generate 427 MQLs. From here, we have another conversion rate of 25% to deals created or sales qualified leads. That gives us a a goal of a 107 deals for that quarter. From here, we need to factor that into qualified deals. So a conversion rate of 75% leads us with 80 qualified deals for the sales team to work. Then we have another conversion rate to see how many of those we can sell as closed won customers. That's 20 customers. Finally, we look at our average deal size across all of the deals, and that gets us into our total contract value revenue. And so for go to market goals and all the calculations, you can go top to bottom or bottom to top. You could also start with $1,000,000,000 in, um, in average deal size, and that would give you the total amount of customers you need to bring in in that calendar quarter. And then you could funnel up all the conversion rates from the bottom to top, and that would get you the lead goal at the end. So there's a couple ways to do that, but what you need to know is defining your go to market metrics, understanding the converge rate between those, and then going from top down or bottoms up to finally get all of the inputs needed to generate your goals.