Paving your Path to Success: Metric Driven Business Development
In the world of business development, success hinges on more than just intuition and experience. It requires a systematic approach to measuring progress and outcomes. This is where metrics-driven business development comes into play. By creating and adhering to your own unique set of metrics, you can craft a business development plan that not only aligns with your personal goals but also propels your organization toward sustained growth.
Understanding Metrics-Driven Business Development
Metrics-driven business development is about defining, tracking, and analyzing specific indicators of success that are tailored to your activity. Unlike generic marketing metrics, these are custom metrics designed to reflect the specific dynamics and goals of your business development activity. They serve as benchmarks to measure performance, identify areas for improvement, and guide strategic decisions.
Crafting Your Own Metrics
Creating your own metrics involves identifying the key performance indicators (KPIs) that are most relevant to your business. These metrics are customized to your specific business model and goals. This is one of the most important and often difficult things to develop in your business development plan. The first thing I look at are the specific business development tactics that you and your organization use to develop new relationships and partnerships. Each of these tactics can have different KPIs based on your business development goals. In addition, you also have to consider your overall business development goals each month, quarter or year to determine the tactics you will use to reach those goals. You will need to do a little “sales math” to find out how many new relationships it will take to achieve the business development goals you’ve set for yourself or your team. Here are some examples of those tactics and possible KPIs: :
Networking: Depending on your goals, time and resources, KPIs for networking can vary. For example, in the simplest terms, if your outcome for networking is to meet prospect decision makers, then you may first set a goal of going to 3 networking events per month. Then, the metric you set is to meet 3 prospect decision makers per event that will lead to at least one in-person meeting. Metrics should be very specific so you can measure what it takes to achieve those specific goals.
Center of Influence Marketing: I could easily write another blog just about this but think about your current COIs. If you’ve chosen the right ones then you need to set some specific metrics around nurturing those relationships. For example, you may set a metric to meet with 4 COIs per month, in-person or virtual, with the outcome being you will get 1 referral from those meetings and another metric is that you’re giving 2 referrals for your COIs (or other value-add)
Client Referrals: This is another one that many companies struggle with. I always think of this statistic: A study by Texas Tech University found that while 83% of customers were willing to refer others to a business they were satisfied with, only 29% actually did so. Based on this statistic, there are many metrics that you can use to leverage client referrals. One I like to use goes back to the philosophy of giving-to-get and providing exceptional customer service. Setting a metric to meet with clients throughout the year to talk to them about their business and understand how you can deliver value above and beyond the scope of work that you’re performing for them. In these meetings you’re learning who would be a good connection for them and in turn asking them for a good connection for you. For instance, set a metric to meet with each client 2 times per year and ask for a specific introduction to a colleague of theirs. You’ll have to give this some thought, every company may have a different approach and outcomes to client referrals.
Partner Events: As part of your business development plan, planning partner events can be a great way to meet new prospects and build deep relationships with your COIs and referral partners. Similar to networking, use a metric around the amount of attendees that you plan to invite and set appointments with after the event. Since these usually take a larger investment, ensuring you have a metric-driven approach is crucial to ensuring you get a good ROI.
Trade Shows: This is another area where we see companies spending a lot of money and not getting the return they wish for. There are many metrics that you can use for trade shows including setting a metric for pre-event meetings, setting meetings during the event and a metric for following up.
The Importance of Metrics
So, why are these metrics important? Here are a few reasons:
Clarity and Focus: Metrics provide clear, quantifiable goals. They help you stay focused on what matters most and ensure that all efforts are aligned with your business development objectives.
Performance Measurement: Metrics allow you to measure progress and performance objectively. They help you understand what’s working and what’s not, enabling data-driven decision-making.
Accountability: When you have defined metrics, it’s easier to hold yourself and your team accountable. Everyone knows what success looks like and can work towards achieving it.
Continuous Improvement: By regularly reviewing and analyzing your metrics, you can identify areas for improvement and make necessary adjustments to your strategies.
Benefits of Creating and Sticking to Metrics
Creating and adhering to a robust set of metrics brings several benefits:
Enhanced Decision-Making: Metrics provide valuable insights that inform strategic decisions. You can allocate resources more effectively and prioritize activities that yield the best results
Increased Efficiency: By focusing on specific metrics, you can streamline processes and eliminate activities that don’t contribute to your goals. This leads to more efficient operations.
Goal Achievement: Metrics serve as milestones on the path to achieving your business development goals. They provide a sense of direction and purpose, keeping everyone motivated and on track.
Resilience through Failure: Not all metrics will show positive results initially. However, by tracking and analyzing these metrics, you can learn from failures and make data-backed adjustments. This resilience is key to long-term success.
Scalability: A metrics-driven approach lays a solid foundation for scaling your business. As you grow, your metrics evolve with you, ensuring that your strategies remain relevant and effective.
The Cycle of Metrics-Driven Success
To implement a metrics-driven business development strategy, follow this cycle:
Define Your Metrics: Identify the key indicators that best reflect your business development activity goals. For example, if you set a goal to attend 3 networking events per month, what do you want as an outcome? 6 meetings with decision makers? 12 new LinkedIn connections?
Track and Analyze: Regularly monitor these metrics and analyze the data to gain insights. Are you meeting the right people at the events you’re attending? Are the events you’re going to achieve your goals?
Adjust Strategies: Use the insights gained to refine and optimize your business strategies. Look at different networking events or tactics that may bring better outcomes
Evaluate Outcomes: Assess the impact of your adjustments and measure progress against your metrics. Are you now meeting your business development goals by refining the events you're attending or trying different tactics at those events?
Repeat: Continue this cycle, using your metrics to drive continuous improvement and sustained success.
Metrics-driven business development is about more than just numbers. It's a strategic approach that involves defining your own measures of success, tracking progress, and making informed decisions based on data. By creating and sticking to your unique metrics, you can build a resilient and adaptive business that thrives in the face of challenges and seizes opportunities for growth. Don’t get discouraged by occasional setbacks; instead, use them as learning opportunities to refine your strategies and propel your business toward greater heights. Remember, success is not a destination but a continuous journey of improvement and achievement.
Partner with Dinkel Business Development, LLC Today
If you want to learn more about how we can help you develop a metric-driven business development plan for you or your team, please call us at 443-226-0163 or reach us via email at john@dinkelbd.com to get started.
