I have spent years forecasting software and SaaS company financials. One area of the P&L that receives extra scrutiny from leadership and investors is the sales and marketing area. It’s easy to get lost in a sea of SaaS metrics, but in this post, I’ll focus on a couple easy and popular (meaning important) SaaS […]
Sales Efficiency
The Forgotten Sales Efficiency Metric
Sales Efficiency Metrics – Cents on the Dollar Recently, I was reading a Tom Tunguz article on how to compensate sales teams. In his article, he cites sales efficiency metrics and customer acquisition costs on a dollar basis from the recent Pacific Crest Securities SaaS survey. It is an interesting way to look at CAC. […]
How to Calculate the SaaS Magic Number
Sales Efficiency Metrics – SaaS Magic Number and More As a CFO, the balance between sales and marketing spend and new ARR or MRR creation is critically important to measure and monitor. Over invest in sales and marketing relative to your new SaaS bookings and will you not the see the expected margin expansion or […]