Saas Sales Productivity Assessment


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Alexander Group 2012 SaaS Benchmarking Study SaaS sales leaders looking for actionable insights to inform their 2012 strategy will receive a comprehensive set of metrics, including information on sales coverage, job roles, sales productivity, customer acquisition and retention, and sales compensation.

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Saas Sales Productivity Assessment

  1. 1. SaaS Benchmarking Study Actionable insights for your 2012 sales strategy© 2011 The Alexander Group, Inc.® Atlanta | Chicago | San Francisco | Scottsdale | Stamford
  2. 2. Does Your SaaS Sales Model Support Profitable Growth? CUSTOMER CUSTOMER CUSTOMER $ ACQUISITION ADOPTION RENEWALSALESMODEL • Low renewal ratesCHALLENGES • Contract shrinkage • High cost service models • Difficulty driving product adoption • High customer acquisition cost • Low customer growth rate © 2011 The Alexander Group, Inc.® 2
  3. 3. Now Open: AGI SaaS Benchmarking Study The goal of this study is to provide executives at leading SaaS companies with actionable data to inform their 2012 sales strategies. Sales Coverage: What sales roles are SaaS companies deploying at different stages of the sales process? Revenue and Cost: What are the most profitable sales channels? Where are the key areas of investment in the industry? Sales Compensation: What are the trends in pay practices and compensation strategy? WHO SHOULD PARTCIPATE? Leaders at SaaS companies looking for a detailed set of sales-focused metrics to confirm their 2012 strategy.© 2011 The Alexander Group, Inc.® 3
  4. 4. Targeted Participants in Pure SaaSAGI is leveraging existing client relationships and is actively recruiting from a list of over 50additional Pure-Play SaaS companies for this study. Targeted companies include:Target Companies © 2011 The Alexander Group, Inc.® 4
  5. 5. Study Includes Three Focus AreasThe SaaS Benchmarking Study collects data in three categories: 1) sales coverageand strategy, 2) revenue and costs, and 3) sales compensation. Coverage and Revenue and Sales1 Sales Process 2 Sales Cost 3 Compensation Segmentation Model  Customer Acquisition  Average Quota Size Cost  Average Attainment Sales Organization Structure  Monthly Recurring  % of Reps at Quota Revenue Coverage Models  Revenue / Sales Rep  Monthly Sales & Sales Headcount Ratios  Bookings / Sales Rep Marketing Expense Manager Span of Control  Base Pay  Annual Contract Value Channel Mix  SPIFFs, Bonuses and  Average Contract Length Sales Process Stages Variable Pay  Customer Service Cost Sales Cycle Length  Pay Mix  Average Renewal Rates Average Close Rate  Plan Mechanics  Sales Enablement Costs  Performance Measures © 2011 The Alexander Group, Inc.® 5
  6. 6. 1 Coverage Models and Sales Process COMMON SaaS COVERAGE MODELS See how other companies Customer define their sales JOB Contract Acquisition Expansion & Adoption Renewal ROLES and how these jobs align to their FARMER Model A HUNTER RENEWAL SALES PROCESS. SPECIALIST Learn how your coverage model productivity and Model B RENEWAL HUNTER / FARMER SPECIALIST resource deployment compare to peer HUNTER companies. Model C RENEWAL Adoption SPECIALIST Manager © 2011 The Alexander Group, Inc.® 6
  7. 7. 2 Revenue and Sales Cost % OF REVENUE BY ROUTE TO MARKET1 Understand the IMPACT that your sales organization structure and cost have on key customer metrics. Benchmarking will help identify opportunities to improve productivity Majority of SaaS revenue and utilize lower cost is field driven, but other channels may provide a channels. better ROI1.1AGI Cloud Coverage and Compensation Study, 2010 © 2011 The Alexander Group, Inc.® 7
  8. 8. 3 Sales Compensation Trends SaaS COMPENSATION PAY PRACTICES Sales compensation can enable or hinder SALES BEHAVIORS and plays a pivotal role in enhancing sales strategy. See if your sales comp plan is competitive with industry pay levels and pay practices. Majority of SaaS companies use booked revenue as a compensation metric1.1AGI Cloud Coverage and Compensation Study, 2010 © 2011 The Alexander Group, Inc.® 8
  9. 9. Study Participation: 4 Step Process1 2 3 4 Executive Data Participant Data Request Interviews Validation Call ReportAGI will conduct Data collection Dedicate a Upon study 2-3 interviews with includes: resource for a completion, AGI senior Sales and Financial metrics data validation call will provide a Marketing submitted via before finalizing participant report Executives to standardized submissions for (no company- capture your go to template report specific data is market strategy Compensation shared). Optional and productivity plan documents report readout by inhibitors Organization AGI charts © 2011 The Alexander Group, Inc.® 9
  10. 10. Participant Report Detail Sample Report Analyses: DATA CONFIDENTIALITY: All data provided by participant companies will be held in strict confidence • AGI will provide participant report that includes ONLY aggregated information. • AGI will strictly adhere to rules of Safe Harbor Act regarding data confidentiality • NDA is available for any company that would like to complete prior to study participation.© 2011 The Alexander Group, Inc.® 10
  11. 11. Interested in Participation?Participants Receive:  Standard Participant Study Report  Industry Benchmarks  In-House Study Report BriefingFor participation details please contact: Michelle Rittenberg @ (415) 216-0514.Visit foradditional information about the study and the Alexander Group benchmarkingpractice.© 2011 The Alexander Group, Inc.® 11