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5 Inside Sales / SaaS Metrics You Should Know

Posted by Trish Bertuzzi on Tue, Nov 13, 2012

SaaS Inside Sales metrics
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!

Find Trish on Twitter and Google+ 

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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)?

posted @ Tuesday, November 13, 2012 8:00 AM by Kyle Porter

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 
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% 
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.

posted @ Tuesday, November 13, 2012 8:13 AM by Matt Bertuzzi

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.

posted @ Thursday, November 29, 2012 10:45 AM by Matt Smith

Very informative highlights. Great success for SaaS companies is reflected as the SaaS rep comp soars upwards.

posted @ Monday, December 03, 2012 5:23 AM by Ayeen Benoza

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