In this episode, Jason Widup, VP of Marketing at Metadata, discusses all the moving parts involved in planning for demand and revenue. He weighs the dos and don’ts when setting goals and provides the building blocks for an efficient demand model.
At the end of this episode, you’ll have a better knowledge of how to set goals in line with demand and revenue targets, how to leverage the right demand model, and optimize it over time.
⚡️ Key takeaways
Takeaway 1: Set clear and realistic goals
Traditionally, setting goals has always been a vague and divided process with the marketing team focusing on vanity leads and the sales team on revenue. This approach may seem good on the surface, but it makes it difficult to reach the endgame—hitting quotas.
To set goals in line with demand and revenue targets, Jason suggests:
- Aligning the sales and marketing teams
- Leveraging historical conversion rates
- Pushing goals for improvement
- Taking realistic risks
Takeaway 2: Use the right input to build a demand model
To get the ball rolling, certain elements belong in your demand model. Once that base is covered, you can finish up with more advanced elements for that extra touch of accuracy.
For the foundation, Jason suggests looking at:
- Starting and ending revenue targets
- Sales/Marketing revenue split
- Average selling price
Then to beef it up, there are more technical elements such as opportunity push rates and opportunity conversion percentage by stage.
Nothing is quite written in stone. But besides what’s suggested, there are tons of other elements that can make your data more accurate. However, try to make sure that things don’t get too complicated.
Takeaway 3: Display your input on a spreadsheet
With your input elements all picked out, you’ll need a platform to view and update your demand model every step of the way. When done right, the spreadsheet transforms into a living, breathing model that practically does its own math.
An added plus is that with all the moving parts on display, it’ll be a lot easier to meet and push goals.
Takeaway 4: Leverage and refine your demand model
Accuracy is key! So, once you’ve set goals, picked your input, and built a spreadsheet, you’ll need a way to ensure the accuracy of your model in the present and over time.
No doubt, building a demand model and keeping track of things is hard work. But while a pat on the back is well-earned, don’t get over-confident or over-reliant on what you’ve come up with. Make tweaks and changes when necessary.
To keep things accurate over time, Jason says you need to:
- Take measurements several times during each period to ensure your assumptions hold
- Check to see which of your assumptions were on/off after each period
- Not get too comfortable because change is inevitable
🎁 BONUS! Get a free demand model template
Jason shares a downloadable sample demand model for inspiration.