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 235

VP of Engineering Scale Marketing Benchmarks 235

SaaStr

SEPTEMBER 7, 2022

How do you build a sales organization from scratch? What about moving from founder-led sales to building a sales team and scaling your revenue growth? Hitting $1M ARR is the benchmark to figure out if you have a product-market fit.” – Veronika Riederle, CEO @Demodesk. Build a predictable sales process.

Sales Hiring 217

Sales Hiring Scale Revenue Sales 217

USIO

MAY 14, 2024

However, some factors might influence this range: Volume of Transactions : Higher transaction volumes often lead to lower revenue share percentages as providers can benefit from economies of scale. About Usio Usio, trusted with billions of dollars in transactions, is a leading fintech payment solution.

Payments 130

Payments Payment Services Merchant Services Payment Solutions 130

SaaStr

DECEMBER 2, 2021

25 SaaStr 214: New Relic CRO Erica Schultz on What It Takes To Successfully Scale Into Enterprise & How The Very Best Reps Build Relationships With Their Leads. #24 Today, we’ll dive into 25-13. We’ll be back tomorrow with the Top 12. #25

Scale 251

Scale Benchmarks Enterprise Leadership 251

ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

Chart Mogul

MARCH 1, 2023

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. See chapter 2 in the report to learn more about net retention benchmarks. When benchmarking, always keep the stage of your business in mind. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

Payrix

MAY 14, 2024

Adam Tesan, CRO at Worldpay for Platforms, is a seasoned executive leader with decades of experience in sales, marketing, and revenue in the software space. During his tenure, Chargebee experienced high growth, scaling from processing about $3 billion in revenue to $13-14 billion. So pretty significant scale.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

Tom Tunguz

MARCH 24, 2019

Focused on capital efficiency from the earliest days of the business, Eric has built a monster software business, with few comparisons in both absolute scale and efficiency. Even at Zoom’s scale, across this peer set, Zoom is the fastest growing, edging New Relic by 5 percentage points. The company filed their S-1 on Friday.

Metrics 277

Metrics Benchmarks Scale Acquisition 277

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

SaaStr

AUGUST 21, 2023

So SaaStr itself is a little funky — we only have 9 team members but a fair amount of scale in terms of reach, revenue, and in some cases, software utilization. So we reached out to the leading SMB vendor. They are focused on pricing per units that scale organically in the enterprise — seats, workflows, etc. The price?

SMB 236

SMB Enterprise Scale Pricing 236

Chart Mogul

SEPTEMBER 8, 2021

This week I talk to Thomas Smale of the M&A consulting firm FE International about what it takes to scale companies at any stage of growth and get them acquired. We discuss company benchmarks and how he helps companies decide on which areas of the business to focus on and when’s best to bring in outside help.

Scale 52

Scale Acquisition Scaling Sales Hiring 52

Mucker Capital

OCTOBER 10, 2023

Sales development is a nuanced blend of art and science, requiring a delicate balance for its effective implementation within a company. Drawing from substantial experience, Sally Duby from The Bridge Group provides valuable insights into the intricate realm of sales development. Sally's wisdom sheds light on this dilemma.

Scale 52

Scale Sales Hiring Outsourced Development Development 52

SaaStr

DECEMBER 3, 2021

#12 SaaStr 196: Stripe COO Claire Hughes Johnson on How The Best Leaders Inspire with Confidence and Stability, The Key To Successful Decision-Making & How To Hire Quality Teams At Scale. #11 11 SaaStr 309: David Skok on The 9 Stage Model To Get A B2B Company To Get Repeatable, Scalable & Profitable Growth. #10 1 SaaStr 221: HBS Sr.

Scale 213

Scale Sales Hiring SMB Benchmarks 213

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. The presentation is embedded below. Just pick a metric.

Scale 364

Scale Headcount Benchmarks Retention 364

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

Cloud 256

Cloud Payments Software Review Payment Solutions 256

Point Nine Land

OCTOBER 23, 2023

P9 Panel on Hiring Sales Leaders — Founders Summit 2023 “You are going to fire your first sales manager!” — A lesson too many founders learn the hard way. The Founder isn’t willing to be the first salesperson Many of the best founders we work with don’t have a sales background and are either product or engineering focused.

Sales Hiring 125

Sales Hiring Scale Technical Advisors Technical Cofounder 125

Sales Hacker

AUGUST 11, 2023

Before we get into it, curious to hear your thoughts on last weeks Sales Hacker/GTMnow announcement ?! This week I sat down and interview the VP of Sales at Crunchbase , Ang McManamon. Ang shares her 5 P’s of Sales Leadership: Professionalism Preparation Process Performance Play More on these below. Grit is a must-have.

Scale 63

Scale Leadership Sales Hiring Sales 63

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

SaaSX

NOVEMBER 14, 2021

Some founders are able to launch a product and get a bit of early traction without sales or marketing. The second case where initial sales & marketing aren’t needed to launch a product is when a founder has a built-in network of ready buyers and lands initial customers through their own efforts. Outbound Lead Generation.

Scale 52

Scale Marketing Sales Recruiting Benchmarks 52

User Pilot

MAY 20, 2024

For example: “Increase sales from referrals by 15% in the next six months.” Having identified your prospective advocates, prompt them to action, like leaving a review, with targeted in-app messages. Prospective customers are more likely to trust a recommendation from someone they know than your marketing messages.

Scale 105

Scale Strategy Social Media SaaS 105

SaaStr

NOVEMBER 5, 2021

On the one hand, you need a shorthand for your sales and marketing efficiency — and that’s Magic Number. Magic Number is your growth in ARR over a quarter divided by the sales and marketing spend in the prior quarter. limited to no sales expense). And IVP has published some data to help you benchmark it.

Scale 267

Scale SaaS Acquisition Benchmarks 267

Tom Tunguz

APRIL 29, 2019

Slack’s sales efficiency exceeds 111%, which is sensational. One dollar of sales and marketing spend today generates $1.11 Zoom’s sales efficiency is at 180%. The first is the sales efficiency, mentioned above. Slack’s business is a marvel of scale, expansion and growth. in gross profit next year.

Benchmarks 270

Benchmarks Metrics Scale Revenue 270

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. DataDog is 2x the scale of New Relic but growing just as fast. An amazing feat to be growing fast at scale and profitable. DataDog is no exception.

Metrics 189

Metrics Benchmarks Scale User Experience 189

OpenView Labs

MARCH 8, 2021

B2B sales involves one business selling its product to another business. Those with experience in both B2B and B2C sales know that B2B is a lot tougher—the deals are bigger, there’s often more than one decision-maker, and the competition is intense. What Interviewing 600+ Sales Reps Taught Me About Team Building.

Sales Hiring 80

Sales Hiring Scale Sales Recruiting B2B 80

User Pilot

MAY 17, 2024

The CES survey contains a statement asking customers to rate the ease of use on a scale. There is no universally accepted customer effort score benchmark. But it’s a good idea to aim for higher ratings of 6 or 7 on a 7-point scale. Generally speaking, there is no universal benchmark to compare your score to.

Scale 52

Scale Benchmarks Onboarding Subscription 52

User Pilot

MAY 2, 2024

Educational webinars showcase new ways to leverage the product, fostering an engaged user community and generating new leads. SaaS companies rely on recurring subscription revenue from customers rather than one-time sales. Loyal customers can also help you acquire new leads via word-of-mouth. 4 or 5 on a 5-point scale).

Retention 111

Retention Metrics Strategy Scale 111

Chart Mogul

JUNE 1, 2023

Are you ready to implement strategies to scale rapidly? And as businesses reach scale ($15-30m ARR), the top quartile customer retention rate further improves to 84%. Make sure that your sales, marketing, and customer success team are aligned and working together to achieve a great experience for your customers.

Retention 90

Retention Metrics Benchmarks SaaS 90

OPEXEngine

FEBRUARY 23, 2022

Like the benchmarking of any key metric, you will drive operational efficiency and better use of your resources, when you see the variance between your company and your peers at the same stage and with a similar business model. Quarter 2 revenues minus Quarter 1 revenues) ÷ Quarter 1 Sales and Marketing Expense. If the result is 0.5X

Scale 52

Scale Benchmarks Marketing Sales 52

User Pilot

MAY 13, 2024

Key features include: Publishing – Create, schedule, and publish posts on different social networks at scale. Social media analytics – Access in-depth campaign analytics and custom reports and compare core metrics with industry benchmarks to optimize marketing performance. Zoho Social Zoho Social monitoring.

Software 105

Software Marketing Scale Social Media 105

Unbounce

MARCH 10, 2022

You’d much rather spend your precious time serving clients and growing your sales, right? You can use that information to: Inform your bidding strategy when creating campaigns Add real competitor data to your client pitch decks Create reports showing your client’s performance compared to competitor benchmarks.

Scale 131

Scale Software Pricing Outsourced Development 131

User Pilot

MAY 13, 2024

Use a Likert or rating scale, give dichotomous options, or offer multiple choices. On a scale of 1 to 10, how satisfied are you with your overall experience using our product? Best practices for feedback collection involve triggering the surveys in context, keeping them short, avoiding leading questions, and closing the feedback loop.

Scale 105

Scale Onboarding Software Review Scaling 105

Sales Hacker

AUGUST 30, 2021

Businesses have been worshipping big data for some years already, but unforeseen events in 2020 and 2021 made it clear that revenue rests on sales data. The pandemic turned markets and sales expectations upside down, leaving only 27% of CEOs feeling confident they’ll see revenue growth in the next 12 months. How to solve it.

Scale 88

Scale Data Sales Benchmarks 88

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. As a public company with significant scale, it’s hard to grow quickly if you have to rely solely on new customers for that growth. Many of the companies saw a big change in their stock prices leading up to earnings.

Cloud 177

Cloud Software Azure AWS 177

Totango

FEBRUARY 10, 2021

We invest in improving our apps to reduce the number of steps involved in lead generation.”). To put your goals of promoting customer success into action, you can define benchmarks that measure success in quantifiable terms. Defining desired outcomes enables you to establish benchmarks that can be used to measure customer success.

Scale 85

Scale Customer Success Retention Strategy 85

OpenView Labs

DECEMBER 14, 2021

OpenView’s 2021 Finance and Operating Benchmarks Report highlights a framework that can unwind this death by a thousand cuts analysis to start with a simple question: Should we allocate resources to R&D (product) or to sales & marketing (sales)? OpEx Spend Benchmarks: Product or Sales? .

Scale 80

Scale Sales Benchmarks Finance 80

OpenView Labs

JUNE 15, 2020

A new, scaling startup sales team requires hyper-attention under the best of circumstances. Add in the challenge of going remote overnight—as so many of us did earlier this year—and leading a team might feel like treading water. This transparency around activity and outcomes is important for a new sales team.

Scale 54

Scale Sales Hiring Sales Communication 54