In this episode, I had the pleasure of interviewing Tommy McNulty, founder and CEO of Rhythm, the first platform dedicated to helping sales leaders scale themselves and their teams, enabled managers, and deliver a culture of performance at any stage of growth. We talked about the importance of using sales P&L to be a people-first leader.
Tommy shared a personal experience where he received an email from a board member the night before a board meeting, revealing that the SDR team was 70% of their customer acquisition cost. This made him realize the importance of understanding metrics beyond just activity and pipeline, such as customer acquisition costs, lifetime value, profitability by customer segment, and payback periods.
We also discussed the evolution of sales tools and how they impact sales performance. Tommy notes that while there are many useful tools available, the quota hit rate has remained steady over the years. He suggests that CFOs should evaluate the value of each tool in their sales stack and determine if it generates the expected return on investment.
Tommy stresses the importance of understanding the financial game and using metrics to make informed decisions that drive sales performance. He also highlights the negative impact that hiring the wrong people can have on a sales team.
Overall, this episode emphasizes the importance of understanding sales P&L and making profitability a team sport. Tommy’s insights into the financial game of sales are invaluable for sales leaders looking to scale their teams and drive performance.
As Tommy says, “Being a VP of sales is a tactical role that requires understanding the financial plan and executing strategies accordingly.” So, if you’re a sales leader looking to take your team to the next level, be sure to tune in to this episode.
John is the Amazon bestselling author of Winning the Battle for Sales: Lessons on Closing Every Deal from the World’s Greatest Military Victories and Social Upheaval: How to Win at Social Selling. A globally acknowledged Sales & Marketing thought leader, speaker, and strategist. He is CSMO at Pipeliner CRM. In his spare time, John is an avid Martial Artist.