2012 saas benchmarking study

© 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


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.


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.


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


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


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


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


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


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.


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


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


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

2012 saas benchmarking study

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