Glossary
MultiplyGTM uses industry standard terminology for the likes of metrics and insight reporting. It also uses product-specific language to describe some of the unique features available within the platform.
This glossary is designed to help answer questions about how best to use the MultiplyGTM platform.
It also includes a summary of the various insights that the platform offers to help you land on the optimal plan.
Platform Terminology
Playbook
Each plan built in MultiplyGTM lives within what is called a playbook.
Playbooks contain a single plan but can optionally include multiple alternate scenarios.
A plan within a playbook can be either a single or multi-year model.
Scenario
A playbook can contain one or more scenarios. Scenarios carry the same structure as the base plan within the playbook (e.g. goal hierarchy and funnel definition) but with different values e.g. goal values or pipeline stage conversion rates.
Use scenarios to explore "what if..." alternate outcomes.
Outcome
The outcome in a playbook is the total amount of revenue that the model predicts you will achieve.
This may be different to your goal (depending on how achievable your goal is).
Outcome includes new sales and recurring revenue.
Overall Goal
Overall goal îs your desired outcome that includes both new sales and recurring revenue.. Think of this as your total revenue goal number.
Use this to articulate your desired outcome, including both new sales and recurring revenue.
Alternatively, you can specify your goal in context of new sales only.
New Sales Goal
New sales goal is the revenue amount that will come from new deals sold during the duration of the playbook.
New sales can stem from both recurring and non-recurring offerings.
Goal Hierarchy
The MultiplyGTM goal hierarchy defines your set of sub-goals. The Goal hierarchy can be built to model how you segment the selling responsibility within your organization.
Examples include:
- Geographical territories
- Vertical markets
- Sellers
Avoid using the goal hierarchy to segment your business by offerings. Use the offerings mix for this.
Offerings
MultiplyGTM uses offerings to define the things your are selling to generate revenue.
Offerings can be either recurring or non-recurring in their revenue generation.
Offerings carry both a unit price as well as a percentage contribution to a goal. e.g. Product Offering A may contribute 25% to your new sales goal; product offering B may contribute 75%.
Offering unit price and % contribution are used together to determine the number of deals required to satisfy a goal.
Metrics
Recurring Revenue $
Recurring revenue is the portion of a company's revenue that is expected to continue in the future.
Unlike one-off sales, these revenues are predictable, stable and can be counted on to occur at regular intervals going forward with a relatively high degree of certainty.
MultiplyGTM considers two sources of recurring revenue:
- Prior year sales that recur during the playbook
- New sales that occur during the playbook
MultiplyGTM applies churn to both of these sources of recurring revenue.
Monthly Recurring Revenue $
A normalized measure of a business’ predictable revenue that it expects to earn each month.
For example, let's say you have 10 customers, and they pay you $50 per month. Your MRR would be $500.
MultiplyGTM includes revenue from recurring offerings but excludes non-recurring offerings in it's calculations for MRR.
Annual Recurring Revenue $
Annual recurring revenue (ARR) refers to all ongoing revenue for a product or business, projected over one year.
Companies that offer yearly subscriptions use this metric to determine how much revenue they can expect each year
MultiplyGTM includes revenue from recurring offerings but excludes non-recurring offerings in it's calculations for ARR.
Sales Pipeline (weighted) $
A weighted sales pipeline, also known as a weighted sales pipeline, is a sales forecasting method that acknowledges that not every opportunity with a prospect actually results in a sale and assigns a value (i.e., a weight) to every potential deal based on where it is within the sales funnel.
MultiplyGTM only considers in-play deals that are sitting in sales stages. It excludes marketing stage deals when calculating pipeline.
Sales Pipeline (non-weighted) $
An unweighted sales pipeline considers every deal value in full without accounting for the probability.
For example, if a deal has a value of $130,000 and a 30% probability of closing, the unweighted value of the opportunity is $130,000.
MultiplyGTM only considers in-play deals that are sitting in sales stages. It excludes marketing stage deals when calculating pipeline.
Closed to Date $
A measure of how much revenue has been generated to date.
Use this in conjunction with importing actuals along with the "time slicer" feature to see you you are progressing over time.
Use the compare feature to determine how you are performing relative to plan.
Average Sales Price $
A calculated average deal size based on:
- revenue $
- number of deals
- offering mix
- offering unit price
ASP is a useful measure of 'big picture' average deal size.
Churn $
Churn is the amount of subscription dollars up for renewal that a company loses over a given period based on a churn rate.
MultiplyGTM uses the annual churn rate (%) to calculate this. It is applied to both prior year recurring revenue and new sales recurring revenue.
Customer Acquisition Cost $
Customer acquisition cost is the amount of money a business spends to get a customer to purchase its products or services. CAC is an important growth metric for businesses to determine customer profitability and sales efficiency.
MultiplyGTM calculates customer acquisition cost by comparing revenue generated from sales and the cost of generating leads.
CAC Payback (Months)
Customer Acquisition Cost (CAC) payback is the number of months it will take to recover the cost of acquiring a customer (your break-even point).
The goal is to keep this period of time as short as possible to help your company grow. Shorter CAC payback = faster growth!
Customer Lifetime Value $
Customer lifetime value (CLV) is a metric that indicates the total revenue a business can reasonably expect from a single customer account throughout the business relationship.
MultiplyGTM considers a customer's revenue value and compares that number to the company's predicted customer lifespan.
Customer Lifetime Value to Customer Acquisition Cost Ratio
The Customer Lifetime Value (CLV) to Customer Acquisition Cost (CAC) Ratio measures the relationship between the lifetime value of a customer and the cost of acquiring that customer.
MultiplyGTM calculates the CLV:CAC ratio by dividing your LTV by CAC.
CLV:CAC is a measure of profitability.