saas software as a service b2b metrics benchmarks conversion rates

1
54% Co's offer PS along w/ Subscriptions 25% Co's give quota relief for PS but no commissions Avg. PS Rev as % 1st Year ACV 25% 3 Months new ISR Ramp Time 60% $2.2-2.5k 6 $150-180k 4-5x $130k $630-720k 1:7 3x 1:5 50% 50% 60% 30% $80-100k 60% 35 1:75 2 70 60% 40% 10 $70k 1:2 20% 80% 36% 93% 8.5% 6% 55% 40% 87% 13% 15% 30% 30:70 66% 91% 50% 90% = 81% 2% 6 40% $5.5-7k 3-4 $200-330k $800k-1.3M $220k 3-5x 4:1 5x Co’s give quota relief on 1st year ACV only Co’s pay ~ nothing for 2+ yrs on contract Avg. quota achievement Avg. commission on NBB ARR quota Avg. commission on upsell ARR Co’s pay full commission for upsells Co’s offer add’l team bonuses NBB from new logos NBB from net upsells Conversion rate: SQL to opportunity Conversion rate: Opportunity to closed deal Ratio vertical mkt territories: geo Co’s offer trials (try-before- you-buy) Months new BDR ramp time Calls/contacts per day Cold calls MQL follow up Target # of SQL’s/wk OTE: 60/40 Base/Variable Ratio BDR : FSR of BDR teams report to mktg Promoted from BDR MRR per deal ARR quota per Q Closed deals per Q ARR annual quota Ratio ISR quota:salary Beg. Q pipeline coverage Ratio Manager : ISR Ratio SEs : ISR OTE: 50/50 B/V Co’s compensate on Cust. Sat (e.g. NPS) Co’s compensate on renewal ARR AMs responsible for upsell ARR Time spent on customer support OTE: 70/30 B/V Co’s give bonus for cust. case study/press Avg. acct renewals per Q Avg. Ratio AMs : customers Median annual gross $ retention Retention equiv. in SMB vs. VSB Churn in VSBs is uncontrollable on avg. Median renewals commission rate Months new FSR ramp time Promoted from ISR MRR per deal Closed deals per Q ARR quota per Q ARR annual quota Ratio FSR quota:salary Beg. Q Pipeline Coverage Ratio ISR:FSR OTE: 50/50 B/V 1:3 Ratio SE: ISR 30-50% Avg. NPS score BUS DEV REPS (BDR) INSIDE SALES REPS (ISR) FIELD REPS (FSR) NEW BUSINESS BOOKINGS (NBB) RETENTION ACCOUNT MANAGERS PROF. SERVICES INSIGHT’S PERIODIC TABLE OF SAAS SALES METRICS MQL = Marketing Qualified Lead SQL = Sales Qualified Lead Net Upsells = Upsells less customer downgrades OTE = On-Target Earnings SMB = Small-Medium business < 1000 employees VSB = Very Small Business < 50 Employees MRR = Monthly Recurring Revenue ARR = Annual Recurring Revenue ACV = Annual Contract Value, equ. to ARR Quota SE = Sales Engineer/Solution Architect B/V = Base Salary/Variable Salary Legend:

Upload: yoli-chisholm

Post on 29-Nov-2014

266 views

Category:

Marketing


1 download

DESCRIPTION

This content is owned by Insights Venture Partners Shared here as a way to bookmark and inform. Reach out on lInkedin if you would like me to take down.

TRANSCRIPT

Page 1: SAAS Software as a Service B2B Metrics Benchmarks Conversion Rates

54%Co's offer

PS along w/Subscriptions

25%Co's give quotarelief for PS but

no commissions

Avg. PS Revas % 1st

Year ACV

25%

3Months new

ISR Ramp Time

60%

$2.2-2.5k 6

$150-180k

4-5x

$130k

$630-720k

1:7

3x

1:5

50%

50%

60%

30% $80-100k 60%35 1:75

2

70

60%

40%

10

$70k

1:2

20%

80%

36% 93%

8.5%

6%

55%

40%

87%

13%

15%

30%

30:70

66%

91%

50%

90% = 81%

2%

6 40% $5.5-7k 3-4

$200-330k $800k-1.3M$220k

3-5x 4:15x

Co’s give quotarelief on 1st

year ACV only

Co’s pay ~ nothing for 2+

yrs on contract

Avg. quotaachievement

Avg. commission onNBB ARR quota

Avg.commission on

upsell ARR

Co’s pay fullcommission

for upsells

Co’s o�eradd’l team

bonuses

NBB fromnew logos

NBB fromnet upsells

Conversionrate: SQL to

opportunity

Conversion rate:Opportunity

to closed deal

Ratio vertical mktterritories: geo

Co’s o�er trials(try-before-

you-buy)

Months new BDR ramp time

Calls/contactsper day

Cold calls

MQLfollow up

Target # of SQL’s/wk

OTE: 60/40Base/Variable

RatioBDR : FSR

of BDR teamsreport to mktg

Promotedfrom BDR

MRRper deal

ARR quota per Q

Closed deals per Q

ARR annualquota

Ratio ISR quota:salary

Beg. Q pipelinecoverage

RatioManager : ISR

RatioSEs : ISR

OTE:50/50 B/V

Co’s compensateon Cust. Sat

(e.g. NPS)

Co’s compensateon renewal ARR

AMs responsible

for upsell ARR

Time spenton customer

supportOTE:

70/30 B/V

Co’s give bonusfor cust. case

study/press

Avg. acctrenewals per Q

Avg. RatioAMs : customers

Median annual gross

$ retention

Retentionequiv. in

SMB vs. VSB

Churn in VSBs isuncontrollable

on avg.

Median renewalscommission

rate

Months newFSR ramp time

Promotedfrom ISR

MRRper deal

Closeddeals per Q

ARR quotaper Q

ARR annualquota

Ratio FSR quota:salary

Beg. Q PipelineCoverage

RatioISR:FSR

OTE: 50/50 B/V

1:3Ratio

SE: ISR

30-50%Avg.

NPS score

BUS DEVREPS (BDR)

INSIDE SALESREPS (ISR)

FIELDREPS (FSR)

NEW BUSINESSBOOKINGS (NBB)

RETENTION

ACCOUNT MANAGERS PROF. SERVICES

INSIGHT’S PERIODIC TABLEOF SAAS SALES METRICS

MQL = Marketing Qualified LeadSQL = Sales Qualified LeadNet Upsells = Upsells less customer downgradesOTE = On-Target EarningsSMB = Small-Medium business < 1000 employeesVSB = Very Small Business < 50 EmployeesMRR = Monthly Recurring RevenueARR = Annual Recurring RevenueACV = Annual Contract Value, equ. to ARR QuotaSE = Sales Engineer/Solution ArchitectB/V = Base Salary/Variable Salary

Legend: