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Net Revenue Retention Rate with Mohamed Kerbek of Acerta

Mohamed Kerbek jumped onto Sales Operations Demystified to share his knowledge and experience in Sales Operations, discover his most important metric to track which is: Net Revenue Retention Rate. Check out all the other episodes of Sales Operations Demystified here.

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Key Takeaways

How to internally recruit revenue operations resources

Mohamed shifted into revenue operations after he spent time in marketing, he naturally shifted away from the brand and softer side of marketing and towards the operational and data side. It was this side of him that then led him into the field of revenue operations field.

This gave me an idea… if you are looking to recruit internally into sales or revenue operations, it could be worthwhile looking into other departments to find resources with a “good eye for data” and bring them into your team 😉

The three-pronged approach to working with sales reps

Mohamed shares his three-pronged approach to working with sales reps:

  • Accountability
  • Learning
  • Competition

He keeps reps accountable with bi-weekly forecasting calls and then facilitates competition with specific dashboards.

Most important metric: Net Revenue Retention Rate

Mohamed’s favorite metric is a wholistic one: Net Revenue Retention Rate. This is the amount of revenue retained from a cohort of customers over a specific time period.

E.g. if you have 100 customers generation $10,000 in month 1 and in the 13th month those 100 customers are generating $12,000 you have -20% net revenue retention – this is a very good sign as it shows that your customers are spending more with you than you are loosing from churned customers.

In contrast, if you have positive net revenue retention, you may want to spend more time in product development before bringing on new customers.

Biweekly group forecasting meetings

Mohamed hosts a biweekly forecasting meeting with all 10 sales reps and the sales leader. This enables them to collect the forecast but also brainstorm options to move deals forward there and then with the rest of the team.

This is an effective strategy when your sales team is around the 10-15 mark, above that and you may need to split this group into multiple sessions. Mohamed states that these sessions have a “healthy degree of tension” 🙂

Joe Gelata strikes again…

We episode Joe Gelata a while back (check out the interview here), since then a number of other guests have said that he has been a significant influence on their career. Mohamed mentioned that everything that he had achieved during his career to date was due to Joe’s guidance when they worked together at Axonify.

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