5 Inside Sales / SaaS Metrics You Should Know
We just published our 2012 Inside Sales for SaaS Metrics & Compensation Report. Just under 200 technology companies participated and we compiled 26 pages of data, insight & ideas.
For those of you who don’t have the time or energy to read the full report (and I hope you find both at some point), I thought I’d put together a few highlights.
- Marketing delivers a higher percentage of pipeline for SaaS (57%) vs. non-SaaS (38%) companies.
SaaS Marketing groups contributed 50% more pipeline than their non-SaaS counterparts. This suggests, and anecdotal evidence supports, that strong and consistent “air cover” from the marketing organization is a critical success factor in the SaaS world. (pg. 6)
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- A third of SaaS sales groups either do not assign territories or use round-robin assignment.
Combined, Round-robin and No Territories accounted for 33% of responses - not an insignificant share. We took a closer look and noticed that, almost exclusively, those particular groups have the vast majority of their pipeline sourced by Marketing. (pg. 7)
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- Role segmentation rules in SaaS sales. 57% transition clients from hunter -> farmer immediately upon close.
There are obviously many factors at play in the decision to split the sales organization (churn rate, potential for cross/up-selling, # customers per rep). That being said, focus and accountability fit hand in glove. (pg. 9)
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- SaaS Sales Rep comp is trending up. The % of reps making $120K+ more than doubled from 2010.
On the other hand, in this year’s round of research, we found that Lead Gen and Inside Sales (non-SaaS) average comp hasn’t moved much since 2009. (pg. 14)
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- On average, Managers are spending 2.4 hours per rep on monthly coaching. We need to do better!
The folks over at the Corporate Executive Board have called 3-5 hours of coaching per rep per month the “magic” number. The vast majority of us (69%) are missing that mark. (pg. 23)
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Please take a look at the report and come back to share your thoughts. Happy Selling!
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COMMENTS
Trish - nice data. Lookin' forward to checking out the report. I've heard that even the marketing automation companies are sourcing >50% of their leads from sales alone (ie relationships, referrals, cold calls / emails). I think this is a good subset of companies to learn more about because they are leading the movement toward inbound. Any insights on this type of data for the inbound/automation marketing companies specifically (Marketo, Eloqua, Hubspot, Silverpop, Pardot)?
Hi Kyle, Trish asked me to dig into the data for you. 1) The research is confidential, so I can't comment on specific companies -BUT- 2) I did look at % Marketing-sourced by Revenues. There is a sharp drop off at about $50M. $1-49M in revenues: roughly 70% marketing-sourced pipeline $50M+ in revenues: roughly 24% -ALSO- 3) There is an open question about what "Marketing-sourced" means. If a lead gen group (which rolls up to marketing) is conducting outbound prospecting, is that marketing-sourced? Next round of research, we'll be sure to probe/call that out more clearly. I'm as interested as you are in the answer.
Trish, What an outstanding amount of information and data! Already forwarded a link to this to several of our clients. Thanks for compiling and sharing.
Very informative highlights. Great success for SaaS companies is reflected as the SaaS rep comp soars upwards. http://bit.ly/ayeen8
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