Date post: | 22-Nov-2014 |
Category: |
Documents |
Upload: | michellerittenberg |
View: | 1,283 times |
Download: | 2 times |
© 2011 The Alexander Group, Inc.® Atlanta | Chicago | San Francisco | Scottsdale | Stamford
SaaS Benchmarking StudyActionable insights for your 2012 sales strategy
© 2011 The Alexander Group, Inc.® 2
Does Your SaaS Sales Model Support Profitable Growth?
CUSTOMERACQUISITION
CUSTOMERADOPTION
CUSTOMERRENEWAL
$
• High customer acquisition cost• Low customer growth rate
SALESMODELCHALLENGES
• High cost service models• Difficulty driving product adoption
• Low renewal rates• Contract shrinkage
© 2011 The Alexander Group, Inc.® 3
Now Open: AGI SaaS Benchmarking Study
The goal of this study is to provide executives at leading SaaS companies with actionable data to inform their 2012 sales strategies.
Sales Coverage: What sales roles are SaaS companies deploying at different stages of the sales process?
Revenue and Cost: What are the most profitable sales channels? Where are the key areas of investment in the industry?
Sales Compensation: What are the trends in pay practices and compensation strategy?
WHO SHOULD PARTCIPATE?Leaders at SaaS companies looking for a detailed set of sales-focused metrics to confirm their 2012 strategy.
© 2011 The Alexander Group, Inc.® 4
Study Includes Three Focus Areas
Coverage and Sales Process
Revenue and Sales Cost
Segmentation Model
Sales Organization Structure
Coverage Models
Sales Headcount Ratios
Manager Span of Control
Channel Mix
Sales Process Stages
Sales Cycle Length
Average Close Rate
Customer Acquisition Cost
Monthly Recurring Revenue
Monthly Sales & Marketing Expense
Annual Contract Value
Average Contract Length
Customer Service Cost
Average Renewal Rates
Sales Enablement Costs
Sales Compensation
Average Quota Size
Average Attainment
% of Reps at Quota
Revenue / Sales Rep
Bookings / Sales Rep
Base Pay
SPIFFs, Bonuses and Variable Pay
Pay Mix
Plan Mechanics
Performance Measures
1 2 3
The SaaS Benchmarking Study collects data in three categories: 1) sales coverage and strategy, 2) revenue and costs, and 3) sales compensation.
© 2011 The Alexander Group, Inc.® 5
Coverage Models and Sales Process
See how other companies define their sales JOB ROLES and how these
jobs align to their SALES PROCESS.
Learn how your coverage
model productivity and
resource deployment
compare to peer
companies.
AcquisitionCustomer
Expansion & Adoption
Contract Renewal
Mo
de
l A
HUNTERFARMER
RENEWAL SPECIALIST
Mo
de
l B
HUNTER / FARMER RENEWAL SPECIALIST
Mo
de
l C HUNTER
RENEWAL SPECIALISTAdoption
Manager
COMMON SaaS COVERAGE MODELS
1
© 2011 The Alexander Group, Inc.® 6
Revenue and Sales Cost
Understand the IMPACT that your sales
organization structure
and cost have on key
customer metrics.
Benchmarking will help
identify opportunities to
improve productivity
and utilize lower cost
channels.
% OF REVENUE BY ROUTE TO MARKET1
1AGI Cloud Coverage and Compensation Study, 2010
Majority of SaaS revenue is field driven, but other channels may provide a better ROI1.
2
© 2011 The Alexander Group, Inc.® 7
Sales Compensation Trends
Majority of SaaS companies use booked revenue as a compensation metric1.
Sales compensation can enable or hinder SALES BEHAVIORS and
plays a pivotal role in
enhancing sales strategy.
See if your sales comp
plan is competitive with
industry pay levels and
pay practices.
SaaS COMPENSATION PAY PRACTICES
3
1AGI Cloud Coverage and Compensation Study, 2010
© 2011 The Alexander Group, Inc.® 8
Executive Interviews
Data RequestData
Validation CallParticipant
Report
Study Participation: 4 Step Process
1 2 3 4
AGI will conduct 2-3 interviews with senior Sales and Marketing Executives to capture your go to market strategy and productivity inhibitors
Data collection includes:Financial metrics
submitted via standardized template
Compensation plan documents
Organization charts
Dedicate a resource for a data validation call before finalizing submissions for report
Upon study completion, AGI will provide a participant report (no company-specific data is shared). Optional report readout by AGI
© 2011 The Alexander Group, Inc.® 9
AGI is leveraging existing client relationships and is actively recruiting from a list of over 50 additional Pure-Play SaaS companies for this study. Targeted companies include:
Targ
et C
om
pan
ies
Targeted Participants in Pure SaaS
© 2011 The Alexander Group, Inc.® 10
Sample Report Analyses:
Participant Report Detail
DATA CONFIDENTIALITY:
All data provided by participant companies will be held in strict confidence • AGI will provide participant
report that includes ONLY aggregated information.
• AGI will strictly adhere to rules of Safe Harbor Act regarding data confidentiality
• NDA is available for any company that would like to complete prior to study participation.
© 2011 The Alexander Group, Inc.® 11
Participation Fees include:
Standard Participant Study Report
Industry Benchmarks
In-House Study Report Briefing
For participation details please contact: Michelle Rittenberg @
(415) 216-0514
Study Pricing
Study Rationale• Why Cloud Practices? • Why AGI?
© 2011 The Alexander Group, Inc.®
Why Study Cloud Sales Practices?
Definition Of Cloud Computing Evolving Enterprises, governments, and consumers are embracing and consuming emerging technologies at a rapid pace.
Relationship Paradigms Are Eroding Customer / Vendor relationships changing as firms focus on flexibility, adaptability, and choice.
Innovation Fed By Co-CreationGlobal pace of technical innovation is being fed more and more through co-creation versus traditional product development lifecycle.
Customers Are Driving AdoptionThey are quick to identify trends, test and deploy technologies, and evolve or dispose of them.
Go-To-Market Model Impacted Everything from strategy to coverage to licensing will be altered by addition of cloud solutions when paired or competing with on-premise offerings.
13
© 2011 The Alexander Group, Inc.®
Why Alexander Group?
14
SaaS KnowledgeExtensive
Benchmark DataSales Strategy & Comp
Expertise
• Microsoft-sponsored Cloud Coverage & Comp Study
• AGI-sponsored Cloud Sales Practice and Incentives Study
• Cloud Practices White Paper
AGI benchmark services compare detailed analytics from proprietary database of:
• Over 100,000 incumbents• More than 200 companies
• 27 years experience in sales strategy and effectiveness
• Industry leader in providing compensation solutions
• ~20 research projects per year for up-to-date sales and comp trends
SaaS Benchmarking Study
Alexander Group’s up-to-date understanding of SaaS best practices coupled with AGI’s extensive benchmark database and leading compensation design expertise will ensure relevant and valuable findings
About Alexander Group• Company Overview• AGI Services• Executive Bios
© 2011 The Alexander Group, Inc.® 16
Why Alexander Group?
We know Sales.Our 26-year focus on helping sales organizations accelerate growth gives us unmatched depth and extensive client experience – we tackle sales issues every day, and drive changes in strategy and execution to impact sales ROI.
We work with a range of companies in various stages of maturity.Our client list is diverse – ranging from large Global 2000 companies to smaller growth-oriented firms with rapidly evolving sales model needs in dynamic market environments. We understand the unique challenges for companies in different stages of business maturity, and help companies navigate through various phases of business growth.
Our people are passionate about Sales.Our consultants understand how sales organizations work and know the importance of sales to an organization’s success. We hire, develop, and train our consultants to leverage their cross-industry experience to tackle the diverse range of sales challenges facing sales leaders today.
Our approach is collaborative and execution-oriented.Our engagements focus on delivering near-term value to our clients, often incorporating implementation phases to ensure effective translation of designed solutions into real-world situations where people need to drive and execute change.
Preferred consultants to premier sales organizations
© 2011 The Alexander Group, Inc.® 17
Sales Strategy and Execution
Consulting
Research Events
Sales growth specialists Over 1000 clients in 26 years
Serving >70% of the Fortune 500
Compelling keynotes Big picture strategy
Tactical insights Top level connections
Sales Leadership EventsSales Benchmarks
Proprietary database Cross-industry +250 companies +100,000 sales
personnel
Preferred consultants to premier sales organizations.
Business Mission
The Alexander Group, Inc. specializes exclusively in go-to-market consulting by helping Global 1000 sales and marketing executives accelerate revenue growth and improve business results.
Alexander Group Services
© 2011 The Alexander Group, Inc.® 18Atlanta | Chicago | San Francisco | Scottsdale | Stamford