When Lebron takes the floor, he expects to achieve a certain set of numbers. Whether it’s his 3rd consecutive triple-double or another 40 point game, Lebron expects it, his coach expects it, and the media expects it. Fortunately for us sales reps, our numbers are only expected by ourselves and our coach. Luckily for us, when we don’t hit our numbers, we’re not plastered on the front of Sports Illustrated or USA Today.
If you’re running a SaaS company and selling to the millions of customers in the SMB market your sales organization will be very similar to other SaaS companies. Below is a no frills post on key 7 metrics you need in your inside sales organization.
SaaS Sales Metric #1 – Leads: There is a pattern with great sales organizations. They bring in a steady flow of high quality leads. We’re finding the best sales organizations bring in at least 10 leads a day per rep. Unquestionably the best way to reach that “lead quota” on the sales side is through our friends at SalesLoft.
Goal: 10 New Leads a Day Per Rep
SaaS Sales Metric #2 – Calls Made: Calling is still by far and away the most effective way to sell a SaaS product. We mix in emails with our strategy. This is done to make sure the prospect has something to view when we get on the phone. The minimum number of calls every SaaS sales rep should be doing a day is 50 calls. Think this sounds like a lot? Put them in a room with a securities sales rep or an annuities sales rep. These reps are making 150-200 calls a day. 50 is doable.
Goal: 50 Calls a Day Per Rep (these calls will obviously include 2nd and 3rd calls to current leads)
SaaS Sales Metric #3 – Conversations: It’s one thing to make a call; it’s another to have a conversation. Documenting a conversation should include some form of uncovering if the ideal customer profile is met. At this point, many companies decide if this lead is qualified or unqualified. The sales manager can learn a significant amount on the sales rep’s ability if this metric is recorded. For example, he or she can see a) if the rep is good at prospecting b) how well they perform on the phone by looking at their Conversation-to-Demo Scheduled conversion ratio.
Goal: 6 Conversations a Day Per Day
SaaS Sales Metric #4 – Scheduled Demos: Many companies record conversations straight to Demos. They’re missing a key part of the sales process where many leads slip through the crack — the “no show” demo. Companies that record this metric can get one more valuable piece of evidence on their sales process. For example, if there is one sales rep who has a large number of Scheduled Demos not showing up, now the sales manager knows to coach them on qualifying leads better by making sure enough urgency is uncovered.
Goal: 1 Scheduled Demo a Day
SaaS Sales Sales Metric #5 – Completed Demos: This is a very strong indicator on the health of your sales organization. If there are many completed demos and few closes, key insight into the sales process is discovered. For many companies, since demos take a large portion of time, it’s imperative sales reps spend time on demos on qualified leads for demos. A sales manager can look at the completed demos-to-revenue booked ratios and see where each rep fairs.
Goal: 1 Demo Performed a Day
SaaS Sales Metric #6 – Opportunities Created: Many companies have foggy communication when to create an opportunity. Do we do it after the first call? How about after the first demo? The best practice is to create an Opportunity once the sales rep has gathered enough data on a prospect proving they are a serious buyer.
Goal: 1 Opportunity Created a Day
SaaS Sales Metric #7 – Revenue Booked: This is obviously where the rubber meets the road. Elevating this metric is the goal of all sales organizations and if the team or individual members don’t hit it, now you have significant amounts of evidence as to “why?”
Goal: Depends on average deal size. SaaS star, Jason Lemkin goes in depth on the math of why a product less than $299/month is going to be tough to build a sustainable and scalable sales team.
Conclusion: Most SaaS companies will have a sales process that 80% similar to most other SaaS companies. If you keep track of the following key metrics, you’ll be on the right track to turn your inside sales organization into a customer acquisition machine.