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Sales Efficiency through Covid : Reading the Tea Leaves for Startups

Tom Tunguz

In 2017, SaaS companies reported their cost of customer acquisition had increased by 65% in the previous five year period. We can examine the sales efficiency of public software companies to get a sense. Since 2016, the average public software witnessed its sales efficiency winnowed from 52% to 47%, a decline of about 10%.

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Salesforce: “We’re Not Seeing Any Downturn or Deceleration”, Growing 24% at $30 Billion in ARR

SaaStr

And Salesforce noted it’s slowing down hiring, and taking a break from bigger acquisitions, for now. Take it from Gartner, who is now predicting SaaS to grow 20% overall next year to $200 Billion in total sales. That’s still a cautious note in Salesforce’s optimism and blow-out numbers. 2021 $21.25B 2020 $17.1B 2014 $4.1B.

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SaaS Is Growing Up: 4 Business Model Changes To Adopt with Notion Capital

SaaStr

Now, the lows appear to stabilize around the levels we saw in 2016. This is where traditional SaaS methods like subscription pricing only, driving growth through headcount only, or a pure sales GTM strategy only live. PLG is about investing in product and data instead of sales and marketing. You don’t want to be there.

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Top 10 Mistakes In 10 Years From Gainsight CEO Nick Mehta

SaaStr

I walk them through this when I hire them. There are many stories of legendary exec hires. I hired the person with a great resume but who didn’t get our business, culture, or community. Lesson: Many times, I thought, “I need to hire for the role I’ll need 4 years from now.” Of course, sometimes that is indeed true.

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Your Product Sells Itself. Now Hire Sales.

OpenView Labs

From its bootstrapped founding in 2002 all the way to a $5 billion valuation in 2016, Atlassian famously had no sales people. ‘No No sales’ became nearly as synonymous with Atlassian as ‘no software’ was with Salesforce. Atlassian now has a sales team. Public PLG Businesses Are Doubling Down on Sales.

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SaaStr is Turning 10! How a Blog Turned into A Global SaaS Community for 250,000+

SaaStr

This led to our first meet-ups in 2013 and 2014, the first SaaStr Annual in 2015 , the industry’s leading podcast in 2016, the first SaaS founder coworking space in 2017, and SaaStr Pro , the first learning management system for SaaS founders in 2018. 2016 The Second SaaStr Annual: From Impossible to Inevitable .

Scale 282
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Customer Acquisition Strategy for SaaS Companies: A Complete Guide

SaaSOptics

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. For subscription-based SaaS businesses, your customer acquisition metrics indicate how effectively you acquire new users via sales, marketing, or a product-led approach like a free trial. Plain and simple.