Chart Mogul

JUNE 1, 2023

So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. So if you are keeping a close eye on your retention metrics this year, you’re not alone. faster than their peers in 2022.

Retention 90

Retention Metrics Benchmarks SaaS 90

Baremetrics

JULY 7, 2021

For SaaS companies, success depends highly on using key metrics to track financial growth and enhance visibility into all the key performance indicators. For every decision-maker in a SaaS company, understanding SaaS financial benchmarks makes a proper interpretation your internal performance metrics possible. Table of Contents.

Benchmarks 105

Benchmarks SaaS Payments SaaS Payments 105

Tom Tunguz

MARCH 18, 2019

Let’s first look at one of the key SaaS metrics: the dollar attention. Next, let’s compare the sales efficiency. Sales efficiency is a measure of the marginal gross profit generated by a dollar invested in sales and marketing. The average customer is worth about $10,000.

Metrics 194

Metrics Benchmarks Software Review Engineering 194

Tom Tunguz

AUGUST 26, 2019

Recently, we’ve seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency. To put the company’s stellar trajectory in context, I’ve plotted its metrics relative to two other incredible monitoring companies: NewRelic (NEWR) and AppDynamics (APPD).

Metrics 189

Metrics Benchmarks Scale User Experience 189

Kellblog

JULY 29, 2021

The purpose of this post is to embed the video recording of my recent appearance on Monday Night Metrics with Ray Rike of RevOps^2 and Ben Murray , also known by the sobriquet, The SaaS CFO. Here’s the video: Thanks to Ray and Ben for having me!

Benchmarks 121

Benchmarks B2B Metrics SaaS 121

InsightSquared

MAY 7, 2019

Sales is the Growth Engine. Sales is the engine driving SaaS company value. Top and bottom line performance are totally dependent on the sales organization and its performance. And sales expense is typically the largest expense item on a growth SaaS company’s income statement. Typical SaaS Sales Metrics.

Scale 102

Scale Sales Hiring Metrics Sales 102

How To Buy Saas

APRIL 5, 2024

Benchmarking, or bounce rate averages industry, provides invaluable data that can help companies identify areas for improvement and implement best practices. The higher the ratio, the more potential sales a company loses. Lack of good after-sales service and return policy. Poor user experience on mobile devices.

Benchmarks 40

Benchmarks Payment Methods Payment Services Payments 40

Kellblog

OCTOBER 30, 2022

Unlike Meritech Public Comps , where you can see metrics for the best [1], public SaaS companies, this private company data is somewhat harder to come by (the only other source that springs to mind is RevOps Squared ) and, for most of us, it provides much more realistic comparables than Meritech [2]. Free cashflow (FCF) margin of -5%.

Metrics 135

Metrics SaaS Benchmarks Churn 135

ChurnZero

JUNE 9, 2023

Good sales teams typically get the budget, headcount and tools they desire because the function is tied to revenue. 8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective.

Finance 98

Finance Metrics Customer Success Headcount 98

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

FastSpring

APRIL 26, 2022

In part one, we cover benchmarks and common churn formulas. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. Part I: SaaS Churn Benchmarks. When we set churn benchmarks for SaaS companies, there’s so much to consider.

Benchmarks 123

Benchmarks Churn Payments SaaS Payments 123

SaaStr

JANUARY 26, 2024

One metric I wanted to highlight. And look, average sales cycles are almost meaningless. A related post here: Dear SaaStr: What’s a Good Benchmark for B2B Sales Cycles? So Vendr has their latest SaaS Buyer Report out here. There’s plenty of good data in there and it’s worth a read.

SaaS 281

SaaS Benchmarks B2B Metrics 281

Tom Tunguz

AUGUST 26, 2023

” The PLG efficiency is tremendous both in cash & sales efficiency, which tops the charts of public software companies at 1.03 When the company spends $1 in sales & marketing expense, Klaviyo produces $1.03 Braze targets enterprise buyers with a sales-led motion. Est. Sales Efficiency 1.04

Benchmarks 173

Benchmarks Venture Capital Marketing SMB 173

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). The rise of NDR as the SaaS metric of choice. In the session we discuss: The answer, which is 104%.

Benchmarks 109

Benchmarks Retention Subscription Payment Features 109

Intercom, Inc.

DECEMBER 8, 2020

This is where metrics can be invaluable, giving clarity on performance, and circumventing potential issues. But with so much data to consider, how can you define the help desk metrics that matter for your team? What are help desk metrics? Help desk metrics vs. KPIs. Ticket volume or total conversations.

Customer Support 211

Customer Support Metrics Technical Review Scale 211

Chaotic Flow

NOVEMBER 11, 2014

As many of you may know, Trish Bertuzzi and the folks over at the Bridge Group publish a lot of great stuff on Inside Sales strategy and operations, including inside sales compensation benchmarks, lead development rep best practices, outbound selling strategies, and on an on. It only takes 6 to 8 minutes to complete.

Benchmarks 125

Benchmarks Compensation Sales SaaS 125

Chart Mogul

JULY 6, 2023

Say hello to negative churn, churn’s much more friendly sister metric. Say hello to negative churn, churn’s much more friendly sister metric. Churn, in general, is a key metric and health indicator for your SaaS business. We’ll also share the latest benchmarks on negative churn among SaaS businesses. It’s a silent killer!

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

OPEXEngine

DECEMBER 13, 2022

In these discussions, lots of conventional wisdom is shared, backed up by “benchmarks” that came from an investor, a conference, or another industry source. That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way. SaaSco’s sales cycle is six to nine months. .

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

Tom Tunguz

AUGUST 26, 2023

” The PLG efficiency is tremendous both in cash & sales efficiency, which tops the charts of public software companies at 1.03 When the company spends $1 in sales & marketing expense, Klayviyo produces $1.03 Braze targets enterprise buyers with a sales-led motion. Est. Sales Efficiency 1.04

Benchmarks 159

Benchmarks Venture Capital Marketing SMB 159

User Pilot

AUGUST 10, 2023

And the customer acquisition cost (CAC) shows you how effective you’re with your sales and marketing efforts to acquire new customers. Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. The average CAC varies across industries.

Acquisition 71

Acquisition Benchmarks Customer Lifetime Value B2B 71

Chart Mogul

MARCH 1, 2023

We really like this metric because it encapsulates both the business’s ability to retain — so minimizing churn — and also their ability to upsell. The length of the sales cycle, the tenure of your contract, discounting, onboarding, the type of customer support, and even retention strategies all depend on your ARPA. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

User Pilot

JULY 13, 2023

In this article, we’ll go through how to measure growth of a company by delving deep into the basics, relevant metrics, and each necessary company growth rate formula. Different types of company growth include: Industry growth assesses your company’s performance by benchmarking against the industry average.

Metrics 85

Metrics Customer Lifetime Value Benchmarks Churn 85

Kellblog

FEBRUARY 27, 2022

Question: how much does a $15M SaaS company spend on sales and marketing as a percent of ARR? Charts like this, from OpenView’s 2021 Financial & Operating Benchmarks survey , help us answer questions like that all the time. But that’s all SaaS Metrics 101. This situation is very common. This is a mistake.

Sales Hiring 129

Sales Hiring Marketing Sales Benchmarks 129

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Azure AWS 177

OPEXEngine

DECEMBER 17, 2019

In the many years I’ve worked with SaaS companies, I continue to observe a surprising lack of standardization of SaaS metrics and performance reporting. My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. The Value of Benchmarking.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

Kellblog

NOVEMBER 17, 2022

Working in my capacity at as an EIR at Balderton Capital , I have recently written a new publication, The Balderton Founder’s Guide to B2B Sales , with the able support of Balderton Principal Michael Lavner and the entire Balderton Capital team. Sales is saying ‘yes’ in response to every question.

B2B 123

B2B Sales Benchmarks Startup 123

Tom Tunguz

APRIL 14, 2020

Sam Jacobs created the Revenue Collective , a group of more than 1700 sales professionals at some of the fastest-growing companies. With chapters across the US, Revenue Collective has broad reach within the sales community. Typically, sales leaders have reduced quota somewhere between 10-50%. You can download the survey here.

Sales Hiring 283

Sales Hiring Forecasting Sales Travel 283

SaaStr

FEBRUARY 27, 2024

Rajeev Dham and Karan Singh, Partners at Sapphire Ventures, and Jane Lee, Vice President at Sapphire walk us through how to double your “Magic Number,” a shorthand for your sales and marketing efficiency. Magic Number is your growth in ARR over a quarter divided by the sales and marketing spend in the prior quarter. Let’s find out.

VP of Engineering 242

VP of Engineering Scale Marketing Benchmarks 242

OPEXEngine

SEPTEMBER 9, 2021

In working with hundreds and hundreds of SaaS CFOs over the past 15 years, I’ve noticed that effective and strategic CFOs incorporate accurate benchmarking into the daily business of the company and especially into the budgeting and planning process. . And, our average comp per person in Sales is pretty high compared to comparable companies.

Benchmarks 52

Benchmarks Sales Hiring Headcount Customer Lifetime Value 52

Kellblog

MAY 19, 2021

.” — Me responding to Ray calling me the Yoda of SaaS metrics. Just a quick post to highlight my recent appearance on the Metrics That Measure Up podcast, hosted by Ray Rike , founder and CEO of RevOps^2 , a firm focused on SaaS metrics and benchmarking. How metrics vary with scale.

Metrics 88

Metrics Scale Benchmarks Acquisition 88

Tom Tunguz

OCTOBER 9, 2013

One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. There are a handful of variants of this metric, sometimes called the magic number, but ultimately they all aim to provide some sense of the incremental revenue returned by sales and marketing investment.

Benchmarks 119

Benchmarks Sales Recruiting Startup Sales 119

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

Tom Tunguz

JUNE 25, 2020

It contains data on go to market team structure, performance by sales function, marketing spend benchmarks, and customer success priorities. We’ve endeavored to include as much data as possible to help companies benchmark themselves relative to others. Just pick a metric. The presentation is embedded below.

Scale 364

Scale Headcount Benchmarks Retention 364

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Tom Tunguz

JANUARY 14, 2015

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Xero does exhibit an amazing sales efficiency metric of 1.05, meaning $1 invested today in sales and marketing yields $1.05

Benchmarks 100

Benchmarks Metrics SMB Outsourced Development 100

Kellblog

AUGUST 24, 2021

Talk to us about the culture of metrics. What are some of the best practices, and what are some things you should avoid while tracking metrics? Any benchmarks that you can talk to us about? When should you start tracking it? And what are some of the pros and cons of tracking NPS? What’s your view on churn? What’s healthy?

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Interviewing Metrics Social Media SaaS 128