SaaS Benchmarking – Top Benchmark Publications and Sources

SaaS Benchmarking – Top Benchmark Publications and Sources

This post provides SaaS entrepreneurs, Business Managers and Investors with the top 75 best practice benchmarks for your SaaS and Software business. Within this chapter we are covering the Benchmarks Sources used by Lean-Marks.

Lean-Case – SaaS Models and Scenarios in the Cloud, 2015

Source Link Lean-Case – SaaS Models and Scenarios in the Cloud, 2015
Publisher Lean-Case
Published 2015
Base compares benchmarks across various benchmark providers

Description

With Lean-Case, you can leverage a SaaS Business Case modeling service to plot a transparent Go-to-SaaS business case taking your assumptions based on relevant benchmarks into account. You can use a proven SaaS business model, instead of worrying about building one yourself. Lean-Case leverages a unit economics approach to evaluate the viability of the go-to-market strategy and the dynamics of hiring new sales units. Lean-Case allows you to understand, plan, simulate and manage the cash-flow gap, lifetime values vs CAC, revenue recognition, cash and expense projections and profit margins effectively. It enables you to present and share an updated P&L for the new SaaS product line with your peers, investors or board in a winning way.

Insight Partners – Periodic Tables of SaaS Metrics, 2014

Source Link Insight’s Periodic Tables of B2B Digital Marketing Metrics, SaaS Sales Metrics and SaaS Financial Operating Metrics
Publisher Insight Venture Partners
Published 2014
Base Insight’s Portfolio Companies

Description

Insight Venture Partners is a leading global private equity and venture capital firm founded in 1995. The company has raised more than $8 billion and invested in more than 200+ growth-stage software, eCommerce, internet, and data-services companies. Insight Venture has created a series of Periodic Tables for SaaS and Software companies, including

  • Insight’s“Periodic Table of B2B Digital Marketing Metrics”provides the statistics and tactical trends that Insight Venture Partners has collected from its portfolio companies and observed across the industry. The Periodic Table reflects the complexity of the software marketing landscape but is not an exhaustive list of all marketing activities
  • Insight’s“Periodic Table of SaaS Sales Metrics”is compiled from benchmark information gathered from its SaaS portfolio companies and publicly available sources. The Periodic Table represents the core metrics that should be managed by Sales Executives
  • Insight’s“Periodic Table of SaaS Financial & Operating Metrics” provides a framework for the ‘dashboard’ of Financial and Operating metrics that can be used to monitor the overall health and operating efficiency of a SaaS business, along with some additional statistics that speak to tactical trends that Insight Venture Partners has observed across the industry

These Periodic Tables should be used in conjunction. The Periodic Tables for ‘SaaS Sales Metrics’ and ‘B2B Digital Marketing Metrics’ provide the underpinnings of the benchmark financial results that appear in the ‘SaaS Financial and Operating Metrics’. Several key metrics vary significantly as a function of company size and maturity, so in order to more precisely represent these benchmarks the data has been broken into two segments:

  • Hyper Growth companies (<$50M in annual revenue and/or growing >50% p.a.) and
  • Scale Model companies (>$50M in annual revenue and/or growing <50% p.a.))

Tomasz Tunguz – Benchmarking Public SaaS Companies, 2014

Source Link Benchmarking SaaS Companies
Publisher Tomasz Tunguz – Redpoint Ventures
Published 2014
Base

Description

Tomasz Tunguz is a Partner at Redpoint Ventures. He blogs at www.tomtunguz.com. For this deck on Slideshare, Tomasz analyzed a basket of 41 publicly traded SaaS Companies. For each company, the progress was measured year-by-year since founding. The companies were segmented by their ACV. The deck includes Key benchmarks for SaaS companies such as revenue, customer success, sales, quotas, etc.

Pacific Crest – SaaS Survey, 2014

Source Link 2014 Pacific Crest SaaS Survey – Part 1
Publisher ForEntrepreneurs / David Skok Pacific Crest
Published 2014
Base

Description

David Skok, a five time serial entrepreneur turned VC at Matrix, and David Spitz (@dspitz) from Pacific Crest, an investment banking firm with a specific focus on SaaS, work together on a yearly basis. In 2014, they surveyed 200 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. The goal of the survey is to provide useful operational and financial benchmarking data.

In Lean_Marks we are referencing a few samples of this survey. The report’s first part 2014 Pacific Crest SaaS Survey – Part 1covers metrics on:

  • Growth(median growth rate by company size, sales model, target customers)
  • Go-to-market Approach(primary sales model, primary sales model by median initial contract size)
  • Customer-acquisition-cost (CAC)(CAC for for $1 of new ACV, CAC and share of new ACV on new customers vs. upsells vs. renewals, CAC by primary sales model)
  • Contracting & Pricing (median annual contract size (ACV) per customer, share of new ACV on new customers vs. existing customers, new ACV from Freemiums/Free trials), average contract length, average billing period, contract length by contract size, primary pricing metric)
  • Professional Services Impact on Go-to-Market(in % of 1st-year ACV by target customer), subscription gross margins)
  • Sales Commissions(by median contract size, for renewals, upsells and multi-year deals)

 

The report’s second part 2014 Pacific Crest SaaS Survey – Part 2covers metrics on:

  • Cost Structure (gross margin, OPEX (S&M, R&D, G&A, EBITDA, FCF), growth rate, median cost structure by size and Sales & Marketing spend vs. projected growth rate)
  • Churn and retention(annual gross dollar churn, annual customer churn, churn by contract length, contract size, primary distribution mode, annual net dollar retention from existing customers)
  • Capital Requirements(capital raised, analysis of companies by capital raised, capital efficiency expectations – median levels for the group, actual/expected time and investment required to reach, ACV at which you expect to have FCF+)

HubSpot Blogs – Your Daily Dose of Inbound, 2015

Source Link HubSpot Blogs
Publisher HubSpot Blogs
Published 2015
Base 900 Markerters – 7000+ Businesses

Description

HubSpot was founded in 2006 as a result of a simple observation: people have transformed how they live, work, shop, and buy, but businesses have not adapted. This mismatch led Brian Halligan and Dharmesh Shah to create the vision for the inbound experience and to develop HubSpot’s platform to support it. With the powerful, easy to use, integrated set of applications, businesses can attract, engage, and delight customers by delivering inbound experiences that are relevant, helpful, and personalized. HubSpot is, after all, on a mission to make the world more inbound, one business transformation after another. This “Demand Generation Benchmarks & Trends: Software Marketer Edition” report consists of data from over 900 other marketers across all industries. You’ll see stats like:

  • Funnel benchmarks – including visitors, leads, MQLs and opportunities – for companies having the most success (and those that aren’t)
  • Cost per lead benchmarks by revenue achievement, annual revenue, industry and company size
  • Email open and clickthrough rates
  • Marketing investments by tactic

Implisit – B2B Sales Conversion Rates, 2014

Source Link B2B Sales Conversion Rates – Lead to Opportunity, Lead to Deal
Publisher Implisit
Published 2014
Base 100++

Description

Implisit increases Sales Win Rates with Predictive Analytics Algorithms that identify patterns and sentiment in customer emails and recommend instant improvements. Implisit technology updates your CRM seamlessly and effortlessly. The unique features match client and prospect communications to CRM records, and create missing contacts. In addition, Implisit will update your CRM fields to provide you with accurate and up-to-date forecast at any time. Implisit publishes impressive infographics, eBooks, whitepapers and manuals to help you get the most out of your CRM.

Totango – Annual SaaS Metric Survey Report, 2014

Source Link Totango – Annual SaaS Metric Survey Report
Publisher Totango
Published 2014
Base 500 SaaS professionals (500 companies)

Description

Totango provides companies with customer insights that help understand which customers need attention and why, by monitoring customer behavior and usage in applications – along with critical relationship data from CRM, billing, and other systems.

In 2014, Totango surveyed over 500 SaaS professionals from 500 companies about the key performance indicators used to run their businesses, revealing unique insights into SaaS trends. The participating companies include:

  • 93 companies with annual revenue <$1M
  • 190 companies with annual revenue between $1M and $10M
  • 112 companies with annual revenue between $10M and $50M
  • 39 companies with annual revenue between $50M and $100M
  • 50 companies with annual revenue >100$M

The survey reveals results for:

  • Satisfaction with SaaS metrics
  • Different focuses on customer acquisition, renewals and upsells
  • Most important customer metrics
  • Retention and Acquisition costs
  • New business coming from Free trials versus Freemium
  • Churn measurements
  • Revenue increase from existing customers

The Bridge Group – Sales Development and Inside Sales Reports on Metrics & Compensation, 2014

Source Link The Bridge Group – Resources
Publisher The Bridge Group, Inc.
Published 2015
Base >200 B2B Technology Companies

Description

The Bridge Group specializes in building, expanding and optimizing inside sales strategies for smart technology companies. The Bridge Group published some great Inside Sales Resources:

The 2014 Sales Development Report on Metrics & Compensation is their fifth round of research since 2007 with a focus on how metrics & compensation change over time. In this round, 222 B2B technology companies with Sales Development Teams were surveyed, most offer SaaS and Software solutions. The report covers the Sales Development Model tasked with Pipeline generation, appointment setting, lead qualification and outbound prospecting. The report reveals:

  • How the Sales Development (SDR) Groups are made up (number of reps, territories, experience level, average tenure, ramp up, team structure)
  • SDR Quotas (basis of quota, average quota based on ACV, average number of deals, quota achievement)
  • Sales efficiency (average number of daily dials, dial attempts and connects)
  • Incentives & Compensation (OTE, duration of a SPIF)

 

The 2015 SaaS Inside Sales Report on Metrics & Compensation covers the metrics for Inside Sales Groups within SaaS companies, defined as Reps owning the entire sales cycle as an individual contributor and/or Reps in a team selling model sharing a territory with a field partner. The report reveals:

  • How Inside Sales Groups are made up (number of reps, territories, segmentation into hunters and farmers, experience level, average tenure, ramp up)
  • Sales quotas (basis of quota, average quota based on ACV, average number of deals, quota achievement)
  • Sales efficiency metrics (average number of daily dials, dials attempts and connects)
  • Incentives & Compensation (OTE)
  • Top challenges for sales teams

 

Authors Peter Gracey and Matt Bertuzzi have built The Bridge Group – Sales Development Outbound Index – an Index on transactional CRM data, after analyzing more than 40 outbound prospectors and large volumes of lead, activity, and opportunity data. The Index consists of 3 KPIs:

  • Reach Rate: What percentage of accounts engage in at least one meaningful, forward-progressing sales conversation?
  • Pass Rate: What percentage of reached accounts are passed by a SDR to a Sales counterpart?
  • Pipeline Rate: What percentage of SDR-passed accounts are accepted into the sales pipeline?

InsightSquared – New Benchmarks for Inside Sales Teams, 2014

Source Link InsightSquared – New Benchmarks for Inside Sales Teams
InsightSquared
Published 2014
Base 50+ companies

Description

Authors Zorian Rotenberg and Nick Christman from InsightSquared aggregated 12 months of detailed sales data for more than 50 growing software companies with inside sales teams to provide you with some benchmarks that help measure sales team’s performance on some new dimensions.

The benchmark answers a number of important questions:

  • How does the sales process differ for companies growing at more than 20% per year?(Conversion rates, Average deal sizes, Number of bookings per rep etc.)
  • Are big deals worth it?(Sales cycles, Sales effort, Win rates, Dollar per effort, etc.)
  • How much performance variance within your sales team should you expect?(Number of deals, Deal sizes, Win rates by rep performance quartile etc.)
  • Are you spending too much chasing bad deals?(Win/Loss cycles, Win/Loss deal sizes, Sales tasks per win/loss deal etc.)

The authors split software companies into two groups based on sales growth:

  • Fast growth: 100%+ growth in the last 12 months
  • Slow growth: 0 -100% growth int the last 12 months

Xactly – SaaS Incentive Compensation Benchmark Report, 2014

Source Link Xactly – SaaS Incentive Compensation Benchmark Report
Publisher Xactly Corporation
Published 2014
Base > 100 companies

Description

Xactly takes incentive compensation from a dark art to a science, providing decision-makers with the data insights they need to tap the motivational power of their incentive compensation.

Xactly analyzed the sales and incentive compensation patterns of SaaS companies during 2013 to pinpoint the impact of compensation on sales performance. In this dynamic, high-growth environment, incentive compensation can play a key role in determining the success or failure of a business. For the study, Xactly leveraged its big data platform that includes aggregated and anonymous empirical data.

The findings reveal:

  • Incentive plan design
  • Median quota size for a primary quota-carrying sales representative (Account Executive)
  • Average quota attainment
  • Sales attrition

Salary.com – Average Salary Ranges for Sales Jobs, 2015

Source Link Average Salary Ranges for Sales Jobs in the Software & Networking Industry
Publisher Salary.com
Published 2015
Base U.S. National Average

Description

If you want to learn about average salary ranges for Sales (mostly in the U.S.), then you can simply browse Average Salary Ranges for Sales Jobs on Salary.Com. There are a wide range of jobs in the Sales category and their pay varies greatly. If you know the pay grade of the job you are searching for you can narrow down this list to only view Sales jobs that pay less than $30K, $30K-$50K, $50K-$80K, $80K-$100K, or more than $100K. If you are unsure how much your Sales job pays you can choose to either browse all Sales salaries below or you can search all Sales salaries. Other related categories you may wish to browse are Marketing jobs and Customer Services jobs.

Zendesk Bechmark – Behavioral Cues of Customer Satisfaction, 2014

Source Link Zendesk Bechmark – Behavioral Cues of Customer
Publisher Zendesk
Published 2014
Base over 25,000 customers

Description

The Zendesk Benchmark combines support data from over 25,000 participating Zendesk customers. This data is a global, up-to-date source of customer support knowledge. And Benchmark reports are built into your Zendesk, so quantitative insight is always close at hand.

The Behavioral Cues of Customer Satisfaction White paper provides insights into Customer Satisfaction, for example by:

  • Countries
  • Industry
  • Politeness of customers
  • Email provider
  • …and more

Use the Zendesk Benchmark to measure your support quality on several metrics, compare your company to your competitors, and discover new strategies to raise your customer satisfaction.

Openview – State of B2B Mobile Growth Metrics, 2015

Source Link State of B2B Mobile Growth Metrics
Publisher Openview Venture Partners
Published 2015
Base 60

Description

OpenView Venture Partners is an American venture capital firm based in Boston. OpenView specializes in expansion stage software, new media, Internet, and technology enabled companies. Mobile apps are the next big wave in B2B SaaS. As was the case with the initial adoption of SaaS, Openview feels that there is a need for new metrics that can serve as more appropriate and accurate indicators of mobile performance. The access to SaaS metrics has played a major role in the industry’s dramatic growth. With them, SaaS entrepreneurs have been better able to understand what to measure, where to invest, and when to pull certain levers to drive more effective, sustainable growth in their companies. In the emergence of the emergence of mobile B2B SaaS, Openview sees a new offshoot of the traditional SaaS model. Mobile SaaS businesses are fundamentally different from their non-mobile counterparts. In fact, due to the bring-your-own-device movement and different economic models, current users and user growth can often matter as much, if not more, than current recurring revenue. Openview had several conversations with founders and investors in the mobile B2B SaaS space who unanimously agree that mobile B2B SaaS needs a distinct set of metrics to measure performance and growth. The survey’s respondents included over 60 senior executives who shared their company’s data in several key categories, helping to better understand the elements that best reflect a B2B SaaS company’s mobile health.

Kaseya – MSP Global Pricing Survey, 2014

Source Link Kaseya’s MSP Global Pricing Survey
Publisher Kaseya
Published 2014
Base 700 MSPs from 30 countries

Description

Kaseya provides IT systems management software that helps managed service providers (MSPs) and mid-market enterprises drive growth, innovation, and most importantly, customer success. Kaseya’s solutions are used by more than 10,000 customers worldwide to manage over five million devices across a wide variety of industries. Kaseya has a leading position among MSPs around the globe. This leading market position gives Kaseya a unique perspective from which to study both pricing and service delivery trends in the global IT services industry. The results provide visibility into the types – and portfolios – of IT services that MSPs deliver to clients, including managed services offered by a wide range of MSPs from the many small providers to some of the largest and most progressive MSPs in the market today. Kaseya gathered details from Kaseya MSPs on the existing and emerging types of services they offer, their current service pricing and future pricing expectations, and on the key challenges their customers face, with particular emphasis on the most important IT service management trends today — cloud and mobility. The findings are gathered from owners and operators of nearly 700 MSP firms of all sizes, spread across more than 30 countries

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