To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

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If you haven’t done so yet, it’s time to establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals. Then lock these goals in with a service-level agreement between your marketing and sales teams.

From here, clearly define how many marketing-qualified leads must be delivered to the sales team in a given month along with what percentage of those will become sales-qualified, then opportunities, then customers. These metrics will allow you to determine how many account executives will be needed for the sales team when factoring monthly quotas and quota-attainment percentages. It will also help you determine how many visitors and leads the marketing team needs to generate to hit its goals by working backwards from these metrics.

More SaaS + Software Stats

Three uses for the SaaS Guidelines

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Is your SaaS business viable?

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

More than 1/2 of SAAS companies increased their spending on customer retention last year

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

More Growth Strategy Stats

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

At Facebook, 15 percent of tech roles are staffed by women

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Internet Sales strategies have a significantly lower CAC of just $0.42

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.