Inside Sales Benchmarks for SaaS

The Bridge Group Inside Sales for SaaS

In 2012, The Bridge Group surveyed 197 B2B software-as-a-service (SaaS) companies on their inside sales implementations. The Bridge Group specializes in building, expanding and optimizing inside sales strategies for both technology-based enterprise and startups firms. In its survey, The Bridge Group defined inside sales as owning the entire selling cycle as an individual contributor and/or sharing a territory with a field partner. The below summary will enable sales leaders to determine how their organizations and teams are performing against industry benchmarks.

ABOUT SURVEY PARTICIPANTS

  • Do you segment inside sales by hunters and farmers? 46% segment (percentage increases with revenue).
  • How are territories assigned? 67% are assigned by geography followed by named accounts and verticals.
  • How many inside sales people are in your company? 13.
  • How would you describe your sale? Established market (44%); new concept (14%) and new paradigm (42%).
  • What is your top-line revenue? $1M-$9M (26%); $10M-$49M (46%) and $50M+ (28%).
  • What percentage of your pipeline is sourced by marketing? 57%.
  • When are accounts transitioned from hunters to farmers? 57% of accounts are transitioned at the close.
  • Where are your inside sales teams located? 50% are entirely centralized; 44% are partially decentralized.

ACTIVITY AND INFRASTRUCTURE

  • Are you using automated/power dialing technologies? 25%.
  • Before moving on, how many attempts/touches do your inside sellers make? Six attempts.
  • What data providers does your inside sales team use? The top three are Data.com, Hoover’s and ZoomInfo.
  • What is the average number of conversations per day per inside seller? 10.
  • What is the average number of dials per day per rep? 38, but increases 48%-72% with dialing technology.
  • What social providers does the team use for prospecting? The top three are Facebook, LinkedIn and Twitter.

COMPENSATION AND QUOTA

  • How are inside sellers compensated? $109,000 OTE ($57,000 base salary and $52,000 variable).
  • What is an inside sellers quota based on? ACV (47%), MRR (24%), Seats/Units (3%) and TCV (26%).
  • What is the average deal size? $28,800 (company specific context is required for definition).
  • What is the average number of deals per year? 38.
  • What is the average quota per inside seller? $670,000 ACV or $5,245 MRR depending how quota is based.
  • What percentage of inside sellers achieve quota? 74%.

INSIDE SALES MANAGEMENT

  • How many hours/months do managers spend coaching inside sellers one-on-one? 14 hours.
  • What are your top three challenges? Performance/productivity (44%) followed by forecast accuracy and hiring.
  • What is the OTE for inside sales management? Director ($178,000), manger ($135,000) and VP ($$212,000).
  • What is the ratio between direct manager and inside sellers? One to seven.
  • What titles are used in inside sales management? Director (22%), manager (41%), VP (22%) and other (15%).

RAMP AND RETENTION

  • How long does it take for a new inside seller to be fully productive? 4.2 months.
  • What do you require as experience when hiring? 2.5 years.
  • What is the average tenure of an inside seller? 2.5 years.

All contents copyright © 2014, Josh Lowry. All rights reserved.

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One Response to Inside Sales Benchmarks for SaaS

  1. Del Woggel says:

    What is up? I go to your blog regularly. Love it!

    Like

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