Metrics

Metrics are quantifiable and measurable results that a customer perceives as valid for their project or initiative.

In general, your prospects will not initially share openly the hard metrics they use to measure the negative consequences or positive business outcomes of addressing a pain or initiative. However, if you can build trust that your offering will help address the pain, you will be able to discover “the golden nuggets” in every meeting.

Collecting metrics is like collecting money: metrics justify the investment and let you quantify the benefits to protect your price point.

Below the line and above the line

In general, metrics can be divided into two major groups.

Below the line

For example, cost savings and efficiency gains, often paired with reductions in FTEs (full-time equivalents).

Above the line

These are more business-centric, like an increase in revenue or profit, quicker time to market, higher quality and customer satisfaction. These metrics drive decisions and are used to build the business case or ROI.

Tangible and intangible metrics

Tangible metrics

“We are 15 FTEs (full-time equivalents) with 95% utilization. We are expanding our infrastructure 15% a year, and we expect another acquisition this year, which will double it. We will not get a budget to increase FTEs.”

In other words, clear savings the CFO will understand.

Intangible metrics

Improve customer satisfaction, raise the awareness of a brand or reduce the performance of system XYZ.

While these may all be good reasons, they will most likely be disregarded and ignored by the CFO.

So how can you identify solid, tangible metrics?

Questions to ask

• How would you measure the success of your project?
• Which metrics around cost, efficiency or business do you need to achieve?
• How would this success be measured by the business?

Further reading

• What is Metrics in MEDDIC?