SaaStr

JANUARY 12, 2024

We just wrote up how some of the biggest changes of SaaS are now coming, specifically in Customer Success and Sales. Prediction #1: GRR and NRR Make a Mild Comeback GRR (Gross Revenue Retention) and NRR (Net Revenue Retention) have been hard for many companies over the last year or so. Sales grew a little less.

Customers 101

Customers GTM Growth Clients 101

Lead Fuze

JULY 19, 2023

Comprehending the procedure for computing return on sales (ROS) is an indispensable ability for any business expert. This key financial metric offers deep insights into your company’s profitability, revealing the efficiency of your sales efforts and operational management. What is the difference between Return On Sales and ROC?

Profit margin 52

Profit margin Non-Profits Price Sales 52

SaaStr

OCTOBER 14, 2022

When you look at your plans versus actuals, look at your Net New ARR, not just your regular ARR, to get the most insight. . Burn Multiple = Net Burn / Net New ARR. Your burn multiple reveals how much capital you need to raise for every dollar of Net New ARR. CAC Payback Period CAC Payback Period = CAC/ARPA x Gross Margin.

Growth 79

Growth Up-sell Closing Sell 79

Hubspot

FEBRUARY 3, 2020

Return on sales is one of the most important metrics involved in gauging the health of your business and testing the logic behind your sales strategies and budget. Your ROS is an important data point for your company to track, so let’s jump into how you can calculate return on sales for your business and what the figure is used for.

Profit margin 70

Profit margin Sales Represent 70

The 5% Institute

JULY 20, 2023

When it comes to understanding the financial health and profitability of a business, two essential concepts play a crucial role: markup vs margin. While both terms are used in the context of pricing and sales, they have distinct meanings and implications. What is Margin? Markup uses the cost price, while margin uses the selling price.

Profit margin 40

Profit margin Objectives and Key Results Price Represent 40

Search Engine Land

APRIL 19, 2023

What is your overall budget for Facebook ads vs. other parts of your marketing? 20-30% in retargeting sales ads. Facebook has a variety of settings that can be confusing, including Advantage campaign budget (formerly campaign budget optimization) and daily budget vs. lifetime budget.

Campaign 102

Campaign Up-sell Start-ups Lead generation 102

SaaStr

SEPTEMBER 20, 2023

Beyond multiples, many Cloud companies faced a deluge of headwinds that impacted business fundamentals… Lengthening sales cycles Tightening customer budgets It was no surprise that SaaS IPOs came to a screeching halt. On the M&A front, things slowed but remained robust for a couple of reasons.

Growth 101

Growth Negotiate Finance Contract 101

SaaStr

NOVEMBER 27, 2021

Is your CS team growing as fast as your sales team? This one isn’t nearly as risky as a VP of Sales , or a VP of Marketing hire. A modern SaaS Customer Success Manager is something more than an old school Account Manager that would on-board a new customer from sales and then fade away 90 days after implementation.

Customers 98

Customers Clients Promote Growth 98

SaaStr

NOVEMBER 27, 2021

Is your CS team growing as fast as your sales team? This one isn’t nearly as risky as a VP of Sales , or a VP of Marketing hire. A modern SaaS Customer Success Manager is something more than an old school Account Manager that would on-board a new customer from sales and then fade away 90 days after implementation.

Customers 77

Customers Clients Promote Growth 77

PandaDoc

APRIL 5, 2023

Credit memo vs invoice; what’s the difference? An invoice acts as a way of recording details of a sale for the business issuing it, as well as providing a formal way to request payment. Try now Credit memo vs invoice: Learn the difference Credit Memo Invoice What does it do? Net amount of credit (excluding taxes).

Legal 52

Legal Government Finance Promote 52

SaaStr

NOVEMBER 30, 2023

Go-to-Market matters because sales and marketing spend remain the biggest proportion of SaaS spend, so honing in on that spend to build an engine and drive growth is paramount. Because founder-led sales worked really well for most of the early stages, but you eventually start running out of juice around $15M ARR.

Go To Market 95

Go To Market GTM Cross-sell Growth 95

Sales Hacker

OCTOBER 15, 2018

This week on the Sales Hacker podcast, we interview well-known SaaS executive & Gainsight CEO, Nick Mehta. If you missed episode 28, check it out here: PODCAST 28: How High Growth SaaS Companies Build and Lead Sales Teams w/ Chris Degnan. When you should be focusing on gross retention vs. net retention.

Growth 47

Growth Customers Account management Start-ups 47

Lead Fuze

DECEMBER 15, 2023

It’s your safety net in the world of investments – an essential tool you use to decide if jumping into an opportunity is worth it. To calculate ROI, we use this handy formula: ROI = (Net Return / Initial Cost) * 100%. The basic ROI formula calculation involves two main components: net return and initial investment.

Real Estate 52

Real Estate Gambling Contact Represent 52

PandaDoc

JUNE 21, 2023

An invoice, also known as a sales invoice , is a commercial document made by business owners and freelancers to request payment from their clients. Bill vs. Invoice: What are the key differences between the two? See also Gross invoice vs net invoice: Which is better? Usually created for long-term projects.

Legal 52

Legal Clients Contract Price 52

Partners in Excellence

NOVEMBER 26, 2018

Roughly 20 key performance metrics for sales person effectiveness. For example, for a sales person, while you can track and measure them on any number of the metrics outlined above, doing so on all the metrics can be confusing and misleading. I’ve seen sales people being measured on as many as 20 metrics.

Profit margin 79

Profit margin Pipeline Contact Follow-up 79

Gong.io

AUGUST 15, 2022

Some important indicators for SaaS companies would be low NDR (net dollar retention) or GRR (gross retention rates). Net Promoter Score (NPS): a survey-based metric that indicates client sentiment towards your product (more on how to measure this in the next section). This is a more quantitative approach to analyzing churn.

Non-Profits 62

Non-Profits Clients Education Start-ups 62

Salesforce

JANUARY 16, 2024

Pain’s book when I transitioned from sales to sales operations. Pain’s music, my sales background affects how I approach the world of sales ops. What you’ll learn What is sales revenue? Why is sales revenue important? Why is sales revenue important? Learn more What is sales revenue?

Contract 105

Contract Non-Profits Referrals Sales 105

ConversionXL

NOVEMBER 15, 2016

Some are complex and require sales development and account executives to close, like Oracle’s marketing cloud. Could be wasting sales and customer success time if not). Some of the conversions you can optimize for with SaaS could be… visit → trial (quick to test, but doesn’t always correlate to sales). Gross margin.

Conversion 113

Conversion UX Cross-sell Profit margin 113

PandaDoc

APRIL 11, 2023

You can include either net or gross prices on your invoices depending on your business needs. When it comes to debating gross invoices vs net invoices, it’s important to understand the differences between them and their advantages. What is gross pricing? What is net cost? to the cost of each t-shirt.

Transportation 52

Transportation Legal Price Government 52

SaaStr

FEBRUARY 6, 2024

What’s Good Net Revenue Retention? Maybe no surprise the #1 question they get is “ What should my Net Revenue Retention be ? ” What’s ‘good vs. bad’ NRR? Net Promoter Score): NPS is another crucial metric that we talk about a lot, but what should a company’s NPS be going into 2024?

Customers 100

Customers Contract Quota Territory 100

SaaStr

OCTOBER 1, 2020

SaaStr speaker favorite Dave Kellogg recently shared with us his thoughts on why churn is dead, and what’s driving many companies to turn to net dollar retention. Sales commissions amortized. There are four ways to calculate churn rates: Gross vs. Net. ARR vs. ATR. The net problem. #2

Contract 94

Contract Commission Engineering Gaming 94

ConversionXL

OCTOBER 30, 2019

The ROI of an existing customer is higher than the ROI of a net new customer. Whether they’re part of a formal or informal referral loop, the goal is to get the customer to identify with your company and/or product so heavily that they become a marketing and sales vehicle. Another common division is high-value vs. low-value customers.

Referrals 101

Referrals Objectives and Key Results Non-Profits Trust 101

ConversionXL

JULY 21, 2022

How did Outreach grow in just a few years to 50,000 monthly active users , $10 million in new bookings, and net revenue retention (NRR) of more than 140%? The sales platform is intensely devoted to nurturing its monthly active users (MAU). North Star Metric (NSM) vs. One Metric That Matters (OMTM). Defaulting to revenue.

Growth 120

Growth Objectives and Key Results Promote Price 120

Sales Hacker

OCTOBER 7, 2021

Women in sales often have a polarizing experience. In the Sales Hacker video series Aha Moments , I asked 10 women: “What is one ‘aha moment’ you’ve had in your sales career?”. The conversations that followed were so authentic and encouraging that we decided to expand this conversation to other badass women in the sales world.

Sales 130

Sales Start-ups Up-sell Cross-sell 130

Pointclear

DECEMBER 20, 2016

I was having breakfast the SVP of sales one day and he told me that they received no leads from marketing. No sales rep is going to go through their share of 6,000 “leads” to find 108 qualified companies. Gross Margin – 60%. Lastly, the simplistic example shown has all marketing and sales cost lumped into the break-even point.

Hospitality 53

Hospitality B2B Contract Contact 53

ConversionXL

OCTOBER 30, 2019

The ROI of an existing customer is higher than the ROI of a net new customer. Whether they’re part of a formal or informal referral loop, the goal is to get the customer to identify with your company and/or product so heavily that they become a marketing and sales vehicle. Another common division is high-value vs. low-value customers.

Referrals 48

Referrals Objectives and Key Results Non-Profits Trust 48

SaaStr

MARCH 1, 2019

Assisted vs unassisted: What does Tom believe are the leading benchmarks for both? What one question must all founders be asking in the sales process? * Where should the responsibility for upsell lie, customer success or sales? Should sales commission be paid on renewals? What is the right way to conduct a churn analysis?

Contract 47

Contract Price Commission Conversion 47

Hubspot

FEBRUARY 18, 2019

By proactively providing an incentive for people to return to your store with a customer loyalty program , you’ll likely increase your sales and number of promoters (the people who tell their network about your business). Grand openings may include celebratory beverages, food, and sale items to excite your new customers.

Retail 76

Retail Legal Manufacturing Government 76

Hubspot

NOVEMBER 7, 2016

Sales for the bubbly drink have more than doubled over the past two years, but chances are, you won’t see a ton of LaCroix TV ads. Let’s not even get started on the In-N-Out vs. Five Guys and Shake Shack debate. In fact, they’re probably a topic that most of us avoid discussing -- because, gross. 2) LaCroix. Source: LaCroix.

Follow-up 78

Follow-up Strategize Service Launch 78

SaaStr

JANUARY 3, 2020

Assisted vs unassisted: What does Tom believe are the leading benchmarks for both? What one question must all founders be asking in the sales process? * Where should the responsibility for upsell lie, customer success or sales? Should sales commission be paid on renewals? What is the right way to conduct a churn analysis?

Contract 10

Contract Price Commission Conversion 10