Revenue metrics

Live presentation #16

April 24, 2024

Vanessa Metcalf

VP Global Revenue Enablement @ Showpad

• Toronto native
• Dog mom, plant mom, DIY-er

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• ~10 years in Saas across
• Sales
• Sales Leadership
• Revenue Operations
• Revenue Enablement
• GTM Strategy

Why this topic?� �Revenue metrics are a team sport. The more we understand, the father we go together

AGENDA

SaaS Sales Metrics 101

Choosing the metrics that are right for your business

1

SaaS Revenue Metrics 101

2

3

Considerations to choosing your metrics that matter

SaaS Sales Metrics 101

Wrap up, Q&A, Takeaways

4

Reporting mechanism and operating cadence

5

6

Identifying Initiatives that drive change

Activities = Choosing the metrics that matter, putting them into practise / your �organizations operating rhythm, identifying the initiatives that will drive change

Learning Objectives

• Understand the top sales metrics that SaaS executives care about and know how to pick the ones that are right to your organization
• Be able to incorporate these sales metrics into your GTM operating rhythm to drive seller effectiveness and performance
• Start actioning your organizations data maturity model, along with RevOps
• Identify the initiatives that will drive your revenue metrics, by partnering with Enablement, Product Marketing and other critical stakeholers

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Revenue Metrics 101

5 most important Top Line SaaS Metrics

1. Is the business growing YoY? Do they have good product market fit?
2. Can the business retain their clients and expand their their current spend?
3. Is this business generating revenue flow on a monthly basis?
4. How long does it take to regain the cost of acquiring a customer? Is their GTM model efficient?
5. Are they monetizing different cuts of their customer base (eg new logo vs expand)

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In today’s economic climate, profitable growth is the name of the game!

Source: Simon Kusher

Start with the sales funnel metrics, by focusing on the customer journey

LAND

EXPAND

RENEW

AWARENESS

EDUCATION

EVALUATION

IMPLEMENTATION

VALUE �REALIZATION

GROW

ADVOCATE

WIN

CURIOSITY

“We have x challenge, I wonder what tools can help me address. I will do research/ consulted a peer”

“I’ve had hyper relevant/ vale add content and discussions with several vendors in the space”

“I am learning directly from these vendors which tool which solve my challenges and starting to consider which is right for me”

“We will choose from one of # tools to solve our challenge”

“Let’s get this tool deployed effectively and ensure we can unlock value quickly”

“The goals we talked about achieving with this tool are starting to come to life”

“I have some other challenges that need to be solved and I’m ready to deploy new functionality”

“I am having such a great experience and seeing the ROI of this tool. I’m ready to talk to other people about it too”

Then overlay your sales process

LAND

EXPAND

RENEW

N/A

DISCOVERY �+ DEMO

NEGOTIATION�+ CONTRACT

ONBOARDING�+ DEPLOY

EXPANSION�+ UPSELL DISCO / DEMO

NEGOTIATION �+CONTRACT

RESELL

WIN

MQL/ SQL

• MQL > SQL > SQO
• Pipeline created, coverage, other pipe quality metrics
• Activity by rep by date
• Stage conversion
• Land Win rate
• By product, inbound vs outbound, by segment, by region
• Average deal size
• Average Sales cycle

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• Time to deploy
• Customer CSAT
• Customer NPS
• Expand Win rate
• By product, inbound vs outbound, by segment, by region
• Net retention (includes expansion, factors in downsell)
• Gross Churn (total customer left in a period of time)

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What about everything outside of the Revenue Funnel?

For the Individual

• Activity/ Productivity metrics
• Ramp Effectiveness
• Sales Velocity
• Territory Penetration
• Pipeline by Created
• Pipeline Coverage
• Pipeline by Stage and Close Date

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For the account

• Revenue per account
• White space analysis (or other proclivity to buy metrics)
• Expansion / growth $$

For the Organization

• Bookings
• Closed won/ lost
• ACV/ TCV
• ARR/ MRR
• ASP
• Sales cycle
• Pipeline generate by source/ date/ channel
• MQL by source/ channel
• MQL > SQO conversion
• Quota attainment
• GTM retention
• Revenue per seller
• Forecast accuracy�

Choosing the metrics that are right for your business

Before choosing metrics, remember…

1. KPIs should be contextually relevant to your corporate and departmental objectives. Don’t pick at random.�
2. Identifying metrics that matter relies on data maturity and integrity (but remember this usually is never 100% squeaky clean) �
3. Once feel you good about 1 and 2, equally important is the proactive and regular monitoring/ sharing of metrics along with insights and suggested actions to take as a result (partner here with Enablement! More on this later…)

Contextually relevant metrics

Sales

Corporate�Objective

FY24 Functional Goals

Become the market leader in our category by reaching $50MIL ARR, 30% ARR growth, �and 10% profit margin by the end of FY28.

Avg attainment of 80 @ 80%

Increase land Win Rates by 10% by end of H2

Decrease QCR Attrition to <30%

Customer Success

Marketing

Land Pipeline of 3MIL

HR

85% of employees “feel empowered to be their best”

Improve churn rates by 5%

Maintain current expand win rates of 50%

4x pipeline coverage/ seller

Get our customer NPS to >40%

7MIL Pipeline from event attribution

• Do you have reporting / tracking mechanisms for all of these KPIs?
• Is the data quality where it needs to be?
• What tools is the data stored in?
• What actions can happen in the business to make these goals come to life (more on this later…)?

Why does Data Maturity matter?

Data Maturity Models

Ad hoc reporting, little data integrity, no SSOT or chosen MTM, different sources

DATA �MATURITY

STRATEGIC

TACTICAL

Data integrity becomes more trusted by the org, SSOT and MTM emerge

Data fully trusted. Predictable analytics to determine future outcomes

Operating at scale and ongoing iteration/ evolution

Data maturity will help you overcome common organizational bottlenecks such as:�

• Inconsistent definitions of how metrics are formulated
• Organizational operating rhythm for metrics that matter
• Sales leaders going rogue and creating their own reports
• Data coming from one place to tell the same story

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Sharing metrics best practises

• What do the metrics tell us about the business?
• Why should folks care now and to what extent (red/yellow/green flag)?
• What decisions, events, enablement programs etc can or have changed the trajectory of these metrics?
• When can people expect to hear back again on this? Where should they go to learn more

Your organizational metrics rhythm

Who will use your metrics, when and why?

RevOps(Owner)

• Help the business understand health, areas of concern, insights

Enablement (Customer)

• Inform Enablement roadmap/ areas of focus
• To demonstrate impact
• To help us better understand the audiences we support
• Partner with ops on actions to be taken from metric insights

Revenue Leaders & Execs (Customer)

• Pipeline Review
• Forecast calls
• Territory Planning
• Partner with ops on actions to be taken from metric insights
• Overall sales/ GTM health �

Where will your metrics be used and on what cadence?

�Examples:

• Board meetings
• Updates to the business
• Forecast calls
• Performance/ leaderboard
• ABRs/ QBRs
• Coaching conversations

Discussion:��What does your organizations operating rhythm for metrics look like today? What should it look like?

Enablement as a partner;�Making metrics a reality

Sales

Corporate�Objective

FY24 Functional Goals

Become the market leader in our category by reaching $50MIL ARR, 30% ARR growth, �and 10% profit margin by the end of FY28.

Avg attainment of 80 @ 80%

Increase land Win Rates by 10% by end of H2

Decrease QCR Attrition to <30%

Customer Success

Marketing

Land Pipeline of 3MIL

HR

85% of employees “feel empowered to be their best”

Improve churn rates by 5%

Maintain current expand win rates of 50%

4x pipeline coverage/ seller

Get our customer NPS to >40%

7MIL Pipeline from event attribution

Functional Initiatives �Driven by Enablement

Coaching Program for Leaders

GTM Competencies

Launch �Value Selling

Tool Implementation

Product Enablement

Persona campaign

Pitch Deck & Biz Case

Pricing & Packaging

GTM Competencies to feed hiring process

Coaching Program for Rev Leaders

Skill based Enablement Programs for GTM

Risk Playbooks

Value Selling for CS

Business Review Optimization

Skill based programs

ENABLEMENT AS A PARTNER TO MAKE GOALS COME TO LIFE

Enablement initiatives focused on pipe generation helped $500MIL in pipeline in H1

Our content governance strategy saved sellers ~20 hours/ week which contributed to our 30% rev growth

Our Value Selling methodology was a significant driver for the increase in win rates

The new business review optimization initiative we launched has help us increase retention rates by 5% vs same time last year

The Skill and Competency frameworks we drove, along with our Culture of Coaching program helped improve attrition by 15%

EXAMPLE ENABLEMENT IMPACT

Wrap up & final Q&A

What did you think?

Any key takeaways or moments that stood out for you?

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