Founded in 2004, Transpoco is a leading provider of fleet management solutions. The company’s original product was GPS tracking, although they have since expanded their solutions by including driving style, fuel efficiency and field service management. These applications are combined to bring about a synchronized solution to fleet management, with a specific focus on driver safety.
Today, Transpoco is a consolidated telematics provider with a significant number of clients in Ireland, the UK and France, and they continue to expand across Europe. In 2015, Transpoco joined the 1-Telematic Alliance, a group of fleet telematics companies, who are developing a fleet management solutions ecosystem.
Transpoco’s stack comprises a rage of best of breed tools and point solutions including: Jira, Xero, AWS, Zendesk, Hubspot, Google Analytics and proprietary platform databases. The vehicle telematics market place is very competitive with the Average Revenue per Vehicle per Month for traditional telematics applications trending downwards over time. This puts pressure on the Sales and Marketing team to reduce the Customer Acquisition Costs (CAC) and to up-sell more applications to the Transpoco customer base. One of the best ways to reduce CAC is to optimize your processes.
To optimize their processes Transpoco measure the following KPI’s:
Marketing Operations Metrics
- Unique Website Visitors: Unique website visitors refers to the number of distinct people that visit the website over a month.
- Landing Page Conversion Rate: This is the percentage of visitors who end up taking advantage of the landing page offer and who eventually become leads.
- Blog Views: The number of visitors who viewed the blog.
- Social Clicks Growth: A count of clicks on messages that were published through HubSpot.
- Email Opened: Email subscribers are visitors who’ve signed up for your newsletter, mailing list or blog updates. Though they’ve parted with their contact details, they haven’t shown any indication of sales intent, or interest in your SaaS product. Opened emails are a good indication of interest in the product.
- Leads: Leads are visitors that have filled out a contact form on the website, usually in exchange for a download or free resource. In doing so, these visitors have parted with more than just their email address often submitting their name, job title, business name or website address.
- Marketing Qualified Leads (MQL’s): These are leads that fit the appropriate demographics of a customer, and demonstrate interest in your solution, either by viewing several product-focused pages on your website (like case studies or pricing pages), or engaging with more product-focused content offers.
- Opportunities: Opportunities are SQLs that have been handed over to your sales team, vetted, and deemed a genuine sales opportunity, kicking-off the sales process.
- Demo Requests: Getting a prospect on the phone and sitting through a demo requires commitment from your visitors, therefore we regards demo requests as SQLs.
- Sales Qualified Leads (SQL’s): These are leads that meet the MQL qualification criteria, and have demonstrated sales-readiness. They usually demonstrate this by requesting a sales conversation or a free demo.
- Customers: These are people that have signed on the dotted line and committed to paying for your service for a length of time. Though more of a sales metric, it’s important to track how marketing-generated leads convert into paying customers, to assess the overall performance of the marketing strategy
Sales Operations Metrics
- Monthly Recurring Revenue (MRR): This is the amount of revenue collected each month. This figure informs forecasts and is used to set monthly goals to ensure growth over time. MRR is broken into different channels such as new business MRR and expansion MRR. It’s the ultimate indicator of a SaaS company’s viability. In Transpoco’s case this is made up of Average Revenue per Vehicle per month multiplied by the Total Number of Vehicles Under Contract.
- Customer Acquisition Cost (CAC): To compute Customer Acquisition Cost (CAC), you take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period.
- Customer Lifetime Value (CLV): To compute the CLTV, you calculate the Gross Margin that you would expect to make from that customer over the lifetime of your relationship. Gross Margin should take into consideration any support, installation, and servicing costs.
- The LTV:CAC Ratio: This ratio is a widely used metric. Based on customer pay-out, a ratio of 3:1 is the recommended amount of sales and marketing spend.
Customer Success Metrics
- Net Promoter Score (NPS): Net Promoter Score is a customer loyalty metric. NPS can be as low as −100 (everybody is a detractor) or as high as +100 (everybody is a promoter). An NPS that is positive (i.e., higher than zero) is felt to be good, and an NPS of +50 is excellent. Those who respond with a score of 9 to 10 are called Promoters, and are considered likely to exhibit value-creating behaviors, such as buying more, remaining customers for longer, and making more positive referrals to other potential customers. Those who respond with a score of 0 to 6 are labelled Detractors, and they are believed to be less likely to exhibit the value-creating behaviors. Responses of 7 and 8 are labelled Passives, and their behavior falls in the middle of Promoters and Detractors.
- Negative Churn: The holy grail of subscription revenue, and a major RevOps goal, is achieving negative churn which means that expansion (up-sells and upgrades) revenue is outpacing revenue lost from cancels and downgrades.
- Number of Monthly Installations: Number of new vehicles installed.
- Installations Outstanding by Month: Number of vehicles waiting to be installed.
- First Reply Time: Also known as ‘Mean Time to Respond’, FRT is the time taken for your agent to first respond to a ticket.
- One Touch Resolution: Also known as First Time Fix, this is the percentage of tickets resolved in one agent interaction.
- Customer Satisfaction: The percentage of customers rating your support as satisfactory.
Andrew Fleury, CEO of Transpoco
"Before using ServiceClarity, we had a significant challenge in seeing the wood for the trees. We knew we had all the data, but it was administratively very expensive for us to pull everything together. Due to time constraints, we were not looking at our numbers enough and we ended up focusing on the metrics that were easiest to measure.
With ServiceClarity we can see all of our key metrics all the time. We can also more clearly see the relationships between the numbers and how pulling different levers can have a significant impact on performance.
The biggest shift for us since using the ServiceClarity product is the realization that we have been focusing on the wrong things in terms of the fastest route to growth. In the past, the main figure for us was the number of new users per month. However, that is no longer the most important number for us as we have instead prioritized MRR. Improving MRR is helping us in many ways. Obviously, we make more money, so that is clearly advantageous.
It may seem counter intuitive, but increasing MRR helps us grow our number of new users faster. It means we must improve the product and our service delivery. If we don’t make real improvements our current customers will not agree to pay more. This improvement in our offering is then a significant advantage when we demo to new prospects.
The key concern when you try to increase pricing is that customers will be unhappy, however with ServiceClarity we can see all of our numbers beside each other and we are reassured as our NPS score is going up even as we focus on increasing MRR.”
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