Here are the Periodic Table of SaaS Sales Metrics categories with a couple key metrics:
Business Development Reps (appointment setters)
- 2 months new BDR ramp time
- 10 sales qualified leads per week
Inside Sales Reps
- 3 months new ISR ramp time
- $630k-$720k annual recurring revenue annual quota
Field Sales Reps
- 6 months new FSR ramp time
- $800k – $1.3M annual recurring revenue annual quota
New Business Bookings
- 6% average commission on up-sell bookings
- 66% of companies offer a trial before buying
- 2% median renewals commission rate
- 50% of churn is uncontrollable
- 25% is the average professional services fees as percentage of 1st year contract
- 25% of companies give quota relief for professional services but no commissions
- 60% account managers responsible for up-sell annual recurring revenue
- 30% – 50% average net promoter score
This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite of an older post. For this version, I have co-opted two real experts in the field: Ron Gill, (CFO, NetSuite), and Brad Coffey (VP of Strategy, HubSpot), to add expertise, color and commentary from the viewpoint of a public and private SaaS company. My sincere thanks to both of them for their time and input.
Tell us: Which business design methods you deeply understand (your level: 0 to 10 / 0=never heard of)? Business Model Canvas (Osterwalder & Pigneur), Customer Development (Blank & Dorf), Lean Startup (Eric Ries), Strategy Maps (Kaplan & Norton), Disruptive Innovation (Clayton Christensen), Jobs-to-be-done (Christensen, Anthony, Ulwick), Value Proposition Canvas (Osterwalder, Pigneur, Smith, Bernarda), Blue Ocean Strategy (Kim & Mauborgne).
Tell us: Which of the following authors have you read? Mark Johnson, Rita McGrath, Vijay Govindarajan, Chris Trimble, Nancy Duarte, Garr Reynolds, Dan Roam, Dave Gray, David Sibbet, John Medina.