Metrics that Measure Up

Clayton Whitfield founded SaaSOptics to provide B2B SaaS founders and operators a platform that made it easier to capture, calculate and make better metrics informed decisions.Clayton shared that the core metrics that form the foundation of B2B SaaS company value have not evolved significantly over the 12 years since he founded SaaSOptics, but the understanding and comfort with the metrics have evolved.  Clayton also highlighted that because there are no "standards" governing body in the industry, so there are multiple variations and interpretations of the exact input variables of the core metrics.The discussion evolved into a "hammer and nail" analogy, where if you only focus on one metric, say Customer Acquisition Cost Payback Period (CAC Payback Period), and do not understand the inter-dependencies of other key metrics, such as Rule of 40 or Customer Lifetime Value to CAC Ratio or even Gross and Net Dollar Retention can lead to incorrect decisions.Next, Clayton shared the importance of "Cohort" analysis, and why calculating metrics based upon groups of customers that share a common trait, such as industry or timeframe they became a customer.  As an example, if Financial Services is a well-represented industry segment across your customer base, it would be instructive to understand the Gross and Net Dollar RetentionRates of all customers in the Financial Services industry that became customers in 2016 vs 2017 vs 2018, etc. Lifecycle Renewal Curves allow you to see the churn rates after annual term renewals in year two vs year three versus year four.  This is an often-overlooked cohort-based metric that can directly inform Customer Success resource allocation and materially impact retention rates for underperforming cohorts.As an example, Clayton highlighted a cohort that became customers in 2017 that represented a time when the customer on-boarding process was less robust, and thus customers were churning at a higher rate than in later years after the new customer on-boarding process was enhanced.  As a result, the company allocated more Customer Success resources to that cohort to re-train and support that customer cohort to course correct the lower than average retention rates for that specific cohort.Next, we discussed the difference between leading versus lagging indicators in the metrics ecosystem.  Clayton highlighted why usage data, made available via a solid product analytics infrastructure can be a great leading indicator of customer churn risk.  Another example of a good leading indicator is Net Promoter Score (NPS), which has a strong correlation to Gross Dollar Retention.  A caveat is to measure NPS for both the buyer and the user which normally provides different NPS scores and inform you where to prioritize increased Customer Success and/or sales resources. The discussion evolved into the importance of having a well defined Key Performance Indicator framework that identifies the top tier leading indicators, by function that have a direct, causal relationship to the industry standard lagging indicators such as Rule of 40, CAC Ratio, Gross and Net Dollar Retention and Customer Lifetime Value to CAC.Finally, we discussed the stage appropriate use of metrics.  As an example, we discussed Customer Lifetime Value to CAC Ratio, which is a metric that requires the understanding of customer churn over time.  If a B2B SaaS company only has 12-24 months of operating industry, the churn rate is not established with any historical significance, which will result in an artificially high Customer Lifetime Value which can lead to investment decisions based upon false positives.Speaking with the founder of a B2B SaaS company, turned Chief Customer Officer who uses metrics daily to increase customer satisfaction, retention, and thus company value is a great listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Usage-Based Pricing is all the rage across multiple B2B SaaS news outlets. Subscription-based pricing has been the standard pricing model for over 20 years, which has provided B2B SaaS companies more predictable revenue growth over time versus the famous end of quarter "hockey stick" of perpetual licensing software companies.However, companies such as Twilio, Snowflake and DataDog have been using "Usage-Based" pricing to achieve Net Dollar Retention Rates of 130% - 150% and associated Enterprise:Revenue multiples of 20x - 25x.On this episode of Metrics that Measure Up, we speak with Adam Howatson, long-time subscription software executive, and currently CEO of LogiSense, a leading Usage-Based Billing platform company to better understand the trend and what is required to deploy a successful Usage-Based pricing strategy.The first topic we covered was the transition from a perpetual license model to subscription pricing, which was really a cost-plus model that included value for the hosting and intellectual property.  Adam believes we are in a similar pivot from subscription-based pricing to Usage-Based Pricing.One main component of the trend to Usage-Based Pricing is the customer requirement to have more transparency on what they are being charged for and to ensure those variables are directly linked to the value they are receiving. Adam believes the trend to Usage-Based Pricing will be long-lived, and the next material transformation for the B2B SaaS and Cloud industry.Usage-Based Pricing is a very strategic decision, as it impacts the entire monetization strategy of your business.  A key starting point is to ensure you put yourself in the shoes of your customer, and then confirm with your customer/buyers that the element you are using for Usage-Based pricing is validated as a key-value contributor to the buyers.Using a "hybrid model" may be the most prudent way to deploy a pricing model that uses a fixed subscription pricing to cover the vendor's cost, and then adds on a usage-based subscription billing element that becomes the primary profit driver for the B2B SaaS company.Another key element to model out prior to any Usage-Based Pricing strategy is to understand what the minimum baseline of pricing is required is to cover fixed costs of providing the service.  This evolved into the importance of having the right resources, especially data analysts and monetization experts who provide a balanced approach to the impact on both the vendor and the customer using multiple scenarios on the usage, that include the usage of variables such as seasonality, macro, and micro-economic trends and internal expense trends.Product analytics is another trending topic across the B2B SaaS due to the increasing use of Product Led Growth as a primary customer acquisition motion.  A solid product analytics foundation will be critical to understanding customer usage patterns and trends.  This analysis will provide insights for pricing and monetization resources to facilitate which usage variables are best positioned to serve as the foundation for a Usage-Based pricing strategy.The conversation kept coming back to the central theme of "ensure the Usage-Based Pricing variable used" is validated as directly aligned to the VALUE the customer receives.  Most importantly, ensure this value is tested with the actual customers and potential buyers, and not based upon INTERNAL assumptions within the vendor.If you are considering Usage-Based pricing,  it will be important to understand the increasing requirement for transparency, value for money, easy access to usage data and even stakeholder value will contribute to the emergence of the "USAGE ECONOMY".Adam is a true expert on all things Usage-Based Pricing and Billing, and is a great source of information for any company evaluating how to operate within a Usage EcSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

B2B SaaS Metrics are talked about in board meetings, investor diligence, executive team meetings, and recently across every corner of the internet from industry influencers and thought leaders.As the host of the Metrics that Measure Up, I was thrilled that I could speak with Dave Kellogg, one of my long-term follows, and a master of all things B2B SaaS metrics.Dave is a multiple-time, CEO and Chief Marketing Officer of B2B Software and SaaS companies, and a highly sought after advisor, board member and speaker.During this episode, we discuss the top five metrics that Dave advises every B2B SaaS founder and CEO to calculate and they include:✔ Committed ARR (CARR)✔ Committed ARR Growth✔ Net Dollar Retention Rate (NDR)✔ Net Promoter Score (NPS)✔ Employee Net Promoter Score✔ BONUS METRIC - Customer Acquisition Cost Ratio (CAC Ratio)Next we discussed why Net Dollar Retention (NDR) is a less fungible metric than "Churn". One example of "gaming" churn is to include all customers, including multi-year deals in annual churn calculation. Survivor bias is one caution for NDR, where a company will look at a cohort of customers today and look at how much ARR they represented a year ago - which is not a best practice for NDR calculation.The next thing we discussed is which metric(s) have the highest impact on Enterprise Value to Revenue multiples. Traditionally Rule of 40, and company growth rate were the two highest impacting metrics to enterprise value. I suggested to Dave that we are seeing NDR having a much higher impact on EV, and in real-time, Dave calculated the R^2 of NDR which was .35, and three times more causal impact on EV than growth!The other item we discussed was "selection bias" which happens when you look at the public B2B SaaS/Cloud company's metrics, and target their metrics as the benchmark. It's important to remember that these are the BEST of the BEST, and many SaaS metrics will look much better at scale (> $250M) and in those companies that were able to go IPO.We also discussed how some metrics, even something as seemingly simple as "Win Rate" can be miscalculated. Dave has seen several companies take the number of opportunities at the beginning of the accounting period, dividing that into the # of closed-won deals, without considering that many of the opportunities that are still open will close in subsequent accounting periods.Dave once wrote a blog entitled "Don't be a Slave to Metrics". A couple of pithy, and easy-to-remember quotes included: "Metrics work for us, we do not work for the metrics" and " Metrics reflect strategy - they do not drive strategy".If you are just learning B2B SaaS metrics or are a seasoned SaaS metrics veteran, this episode is a must-listen for anyone responsible to led a SaaS company and/or calculate and present your top-level performance, company value-creating metrics.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Benjamin Shapiro started his internet marketing career at eBay, one of the first, largest and most data-driven marketplaces in the world.  Ben's 7 years at eBay provided him the foundation of being a great digital marketer, including SEO and content marketing.Ben caught the Silicon Valley start-up bug, and spent the next 8 years in marketing leadership at B2C early-stage companies, and then he started the MarTech podcast in 2015.Ben's initial experience with podcasting was "an experiment that went wrong".  In this case, wrong meant it was more successful than he could have even dreamed, and quickly he had over 1 Million downloads and a business that usurped his consulting business.The MarTech podcast was launched to be part of a content marketing program to drive awareness for his consulting business.  When Ben first started the podcast, there was not much quality content on MarTech.  Within just a few months, the MarTech podcast hit 10,000 downloads and began to provide monetization opportunities, and quickly evolved to be the centerpiece of his career.Ben shared his perspective on the MarTech industry, and his definition is broader than just "software" that marketers use, but also includes all of the technology, including platforms including Google, Facebook, Snap, etc. in concert with traditional "MarTech SaaS" vendors.C-Level executives have become more focused on MarTech and how it can positively impact brand as well as traditional customer acquisition and expansion metrics.  They also are becoming much more focused on how their company can harness the power of the leading platforms in concert with their internal marketing technology platforms.Ben shared how MarTech has impacted his podcasting business growth.  When building a MarTech stack, he started with what his customers needed, how he could measure their engagement and conversion rate, and thus how he could optimize revenue generation for the podcast to leverage MarTech best practices.One example was being able to capture unique identifiers for each listener on his podcast, and then drive advertising revenue through re-targeting campaigns for his sponsors.  When I asked Ben about the metrics he uses to measure the health of his podcast, he first defined the differences between impressions, downloads, unique listeners (a listen is not a listener).  The problem with using downloads as a key measurement is that a download is often not a listener.  What really matters is to know when a download is really a listener and you can target the unique listener via re-targeting to develop a valuable outcome for sponsors.Being able to map an IP address to a unique mobile identifier is one key data capture that will make your podcast much more valuable to potential sponsors and customers. Ben shares the MarTech stack he uses to accomplish this, including Libsyn,  ART19, Podsites, and Choozle.Ben shared that once you hit 10,000 downloads per month (3K-4K listeners) is a good initial point to start seriously monetizing your podcast.  This number is fungible based upon the target audience.  In fact, Ben recommended that your "target audience" needs to be broad enough to monetize the podcast, versus it being primarily a component of your content marketing program.Ben also highlighted that he has found that having a podcast of 20-30 minutes in duration will lead to a much higher listener completion rate. By taking a 50-minute podcast, and dividing it into 2 episodes has multiple positive effects, including being able to place ads at the end of the podcast which is actually heard.If you are an aspiring podcaster or a marketer desiring to learn about building a great podcast as part of your brand awareness and content marketing strategy, this is a great listen.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

During 2020, over 96% of B2B SaaS companies updated their messaging and positioning to counteract the short and long-term impact of the pandemic.Fortunately, there are experts on how to position your messaging and value propositions, including Bob Wright,  Managing Partner at Firebrick consulting who has helped over 400 B2B tech companies develop and launch new positioning.The first topic we discussed was why an outside consultant is required when the Chief Marketing Officer is well-positioned to led a messaging initiative.  The answer was the expertise developed from conducting positioning with 400 different companies, an experience base that no single CMO can possess.Bob highlighted why any positioning effort must start with the understanding that a cross-functional approach is critical to developing any new messaging platform.  At the end of the day, messaging and positioning must be about the buyer, and that the messaging must be about the buyer, not about your product, and its feature/function.Any positioning initiative must include sales and pre-sales consulting, in concert with customer feedback. Customer feedback is critical to gaining validation on the value that the buyer is receiving from your solution.  Being a "got to have" versus a "nice to have"  is critical to success. One key example is the  "digital transformation" inflection point that has opened the door to new, innovative vendors.  One key to successful positioning is to ensure you align your value to the buyer's and reality, not to your assumptions.B2B SaaS companies have to run three different businesses today including new customer acquisition, existing customer expansion, and retention.  This dynamic requires a "spin" on each of these three revenue-generating motion's messaging.  Though the foundation of the story needs to remain consistent, that words will need to resonate with the stated purpose.Positioning must be directly linked to key performance metrics.  Short term, it should center on increased revenue growth, higher selling price, and increased win rates.  A second measurement is how external influencers, including industry analysts who start to use components of your updated positioning.Positioning needs to be centered on the "buyer", and not industry analysts.  Positioning must  shift when speaking to the user versus the executive buyer. A short version will resonate best with users/buyers and a longer story is best for analysts and investors.Operationalizing positioning needs to cover sales, marketing, services, support, and product.  Having enablement, which includes a certification process that includes sales, services, and customer success is critical.  Do not forget to communicate the updated positioning with customers and factor their feedback into enhancements.Once everyone in the company is sick of hearing the new positioning, that is a great indication that it has stuck!Lastly, we discussed a customer's return on positioning investment.  This customer deployed a new "business-ready data" message, and within twelve months they increased ASP from $30K average contract value (ACV) to $70K ACV, and even closed eighteen new seven-figure deals in the two years following the updated positioning.We closed with the keys to success which including ensuring creating new positioning is a cross-company process that the CEO owns, not drinking too much of your own kool-aid, and removing overused words like scalable, easy to use, flexible, agility, and collaborative - these words mean nothing anymore and worse are boring!If your messaging and company are not standing out from the crowd, this is a great listen to hear the insights and advice from 400+ positioning programs.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Product Led Growth and Usage-Based Pricing are two of the hottest trends in the B2B SaaS and Cloud industry.  Annual subscription pricing has been a hallmark of the financial model for SaaS companies.  Lately, the move to Usage-Based pricing has attracted investor demand that is pushing Enterprise Value to Revenue multiples up to 15x-25x. Chris Mele, CEO of Software Pricing Partners discussed the caution around moving too quickly to Usage-Based pricing, and provides advice developed from consulting with hundreds of software and SaaS companies on their monetization strategy....yes monetization goes beyond just pricing!First, Chris highlights that "Consumption-Based Pricing" has been around for decades, and that there is not one model - there are many gradients of usage variables.  As an example, pricing based upon the number of locations or even the number of users are examples of consumption-based pricing, so it is critical to understand how the usage variable selected is directly aligned to customer value received.Next, we discussed in greater detail how critical it is to ensure that any usage-based pricing model is carefully evaluated and then validated by the customer as to the value they are receiving from the "pricing variable" that you select.  Customer Advisory Boards are one great source of pricing model feedback, specifically as it relates to the value they receive.  In fact, these sessions will often uncover value nuggets that you were not aware existed.Chris highlights that when considering a pricing model change, a foundational premise is to do "NO HARM" to your existing customer and revenue base.  Even as you test pricing models with existing customer's feedback, ensure they understand that their current pricing will be honored with a grandfather clause IF the new pricing model is deployed.A best practice is to implement new pricing first with either a new product and/or a new target market as not to do any damage to the existing customer base and their revenue.As Product Led Growth models continue to evolve, pricing models will be impacted.  Pricing is more than a one-time event, or even a single-dimensional subject, as packaging, product functionality, product roadmap, and go-to-market strategy are all impacted by pricing.  This is why Chris is recommending the need for a Chief Monetization Officer, who reports to the CEO.  It is their primary responsibility to ensure that all cross-functional impacts and requirements of a monetization strategy, including pricing, are considered and understood prior to any decisions or roll-out of a Usage-Based Pricing strategy.For some companies, the primary responsibility for pricing may reside within Marketing, but in the Product Led Growth economy, Chris recommends that monetization is best positioned within a Chief Product Officers domain if the company decides that a Chief Monetization Officer is not the best path at the present time.If you are considering a Usage-Based Pricing model, this episode is chalked full of insights and perspectives that can only be gained from the depth and breadth of pricing model experiences that someone like Chris Mele possesses.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Imagine being asked by Marc Benioff, founder and CEO of Salesforce to ensure that every member of your sales organization can effectively deliver and communicate the latest presentation and messaging that he had just developed.  Then after traveling around the world to execute this directive, Marc informs you that the messaging and presentation has been updated, and you need to do it all over again!Our guest, Elay Cohen founder and CEO of SalesHood experienced that exact situation when he was Vice President of Sales Productivity at Salesforce. His experience as Salesforce was a catalyst to Elay founding a SaaS company focused on using technology to make sales enablement more scalable, automated, and on-going.One of the first topics we discussed was the metrics that should be used to measure the business impact of the Sales Enablement function.  Elay highlighted "time to ramp" and "time to productivity", defined as time to first deal and second deal closed, and time to hitting quota as the first metric to measure, followed by win rates, average contract value, and sales cycle length.The conversation highlighted the above sales productivity metrics are leading indicators that directly impact higher level, company metrics such as ARR growth, CAC Payback Period, and other critical, company value-creating metrics that the CEO and CFO track and present to investors and the board.Sales productivity,  defined as the percentage of sales professional meeting quota was also discussed.  Elay called this as distribution of sales attainment, and this metric is indeed important, but not as a leading indicator of sales performance.Benchmarking current sales productivity metrics is a requisite baseline activity to measure the impact of sales enablement.   Then the conversation progressed to whether sales enablement will evolve to revenue enablement or Go-To-Market enablement.  Elay highlighted that Sales Enablement is a good place to start the introduction of modern learning techniques, and then the results will encourage other departments to adopt the program.The growing importance of Net Dollar Retention was introduced as a company-level key performance indicator that foretells why Customer Success will become a great next candidate to apply the enablement techniques deployed in sales.We then discussed that enabling sales management is just as critical to individual contributor sales resource enablement.  Front line management requires a program that includes coaching, recruiting, interviewing, running forecast calls, and conducting territory reviews. Simply providing a playbook on "what to do" will not work and sales enablement needs to sit down and coach alongside the manager to ensure they benefit from feedback from coaching.If increasing customer acquisition and customer expansion performance and productivity is an opportunity you are interested in learning more about, this is a great episode for you.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Experience is the best teacher. In this episode of the Metrics that Measure Up with Scott Leese we take a deep dive into how experience has informed his career journey.Scott has over twenty years of experience as a six time SaaS VP of Sales, and most amazingly, his average tenure for each role was greater than 3 years in a role that typically experiences a 14-18 month tenure.  Scott shares some of his lessons learned and secrets to his sustained success.First, Scott highlighted how critical a Sales Operations leader is to become the foundation of success.  Secondly, Scott talked about his own journey to learning how to hire better candidates which has a material impact on a VP Sales ability to be successful in early stage SaaS companies.Next we talked about the important of "sales process" and why Scott says he would even design and implement a structured sales process even before he would hire the first sales resource.  Scott says one of the most common mistakes founders make is not to document the sales process that got them the first few deals, and provides insights into the initial scaling of the sales organization.Stage appropriate VP Sales is a common topic and discussion amongst investors, founders, CEO's and even VP's of Sales. Scott's recommendation is to ensure that you design your VP of Sales career journey to embrace and experience every stage of growth.  Scott loved the role of being an early stage of VP Sales at SaaS companies, but did find that bias was created that certain "VP Sales" profiles get labeled as only an early stage VP Sales.  This discussion led to why stock option programs that are historically based upon time - 4 years is the standard but should be aligned to size/growth accomplishments to reward achieving the goal versus a time horizon that is seldom achieved by the VP Sales in early stage SaaS companies.  The other option discussed was to agree on a one-time bonus based upon hitting a pre-defined revenue level, such as $25M or $50M.Scott has leveraged his 20+ years of VP Sales experience to launch his own his own VP Sales consultancy, writing two books including "Rep to Sales Manager",  a quickly growing, weekly Thursday Night Sales event, the Surf and Sales event and most recently his own private patreon.  Scott highlighted that he built his network and the foundational elements of his entrepreneur journey while he was a full time, VP Sales.Scott also shared how his side hustles, including real estate, his books proceeds and even hold the initial Surf and Sales event during his annual two weeks of PTO.  One caveat was ENSURE you are hitting your quota and goals before even considering taking this approach. During the episode we created the concept of "micro-entrepreneurship" which is an interesting step by step approach to moving from employee to entrepreneur.Lastly, Scott discussed that his initial catalyst to building his LinkedIn following was trying to save money on sales rep recruiting.  As a result, not only did Scott eliminate the majority of his recruiting costs, he quickly saw the secondary benefit of building his LinkedIn following.  He supplement his outreach with content that he thought sales professionals were in desperate need to see, read and learn from and not be charged for this type of educational content.If you love the world of B2B Sales,  and are considering creating your own company  some day, this is a great listen.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this episode of the Metrics that Measure Up podcast, we speak with Alex Theuma, the founder and CEO of SaaStock and the SaaS Revolution podcast.Alex started his career as an enterprise sales professional, and identified his passion for SaaS as he started to write a blog on all things SaaS, called SaaScribe.  SaaScribe quickly morphed into a community blog, and enabled Alex to build deep and broad connections across the SaaS ecosystem.Based upon the community of SaaS entrepreneurs that developed, Alex identified the opportunity to launch a European SaaS event.  Even though Alex was preparing to be a first time father in three months,  Alex  jumped head first into launching SaaStock and the first event in 2016 included 700 attendees from over 34 countries.Alex's initial vision behind SaaStock remains consistent to today - to help SaaS founders grow and find success in their SaaS based entrepreneurial venture.  The SaaStock Mission is to make a real difference to those participating  in the SaaS industry across the world.  Being global was not part of the initial vision, as SaaStock was started to focus on SaaS founders across Europe.   However, the first SaaStock event in Dublin attracted attendees from 34 different countries.  With that as the backdrop, SaaStock expanded quickly to be the first global events company for SaaS founders with events in multiple countries around the world.  As the event began to grow, Alex started to partner with communities, initially in Brazil to develop a global footprint.  In fact, SaaStock started their global expansion by partnering the Brazil SaaS Forum and now has expanded to SaaStock LATAM.  Then, Alex expanded into Asia-Pacific.  One material finding was that most SaaS companies in Asia-Pacific need to think globally early on to have a meaningful Target Addressable Market.  With the largest SaaS event competitor being headquartered in Silicon Valley, SaaStock initial decided to enter the US market with conferences in New York.  Then in 2019 they identified the opportunity to hold an event in downtown San Francisco.2020 brought the reality of needing to pivot from in-person events to virtual events, and was the catalyst for SaaStock Remote.  True to their global vision, SaaStock remote could not be conducted just in the 8AM - 5PM US time. So, they pulled the time forward to start at noon in Europe to 10PM in Europe, allowing for European and US SaaS entrepreneurs all to attend.  SaaStock Remote LATAM and SaaStock Remote APAC are being held as focused, dedicated virtual events for those specific geographies.Even though 2020  was a down economic period due to the impact of COVID, the SaaS economy continued to thrive.  Much like the larger, public SaaS companies, after an initial reaction to cut expenses in March, SaaS start-ups started to quickly emerge into hyper growth in 2H20.  Hopin is an example of a European SaaS company that experienced hyper growth, which grew to a $2B valuation within 18 months of launching!When I asked Alex which area of the world he saw the fasted growing for SaaS companies, he first answered that the SaaS world is becoming much flatter, and that San Francisco is not longer the only place to start a SaaS company.  Alex did highlight Latin America as a force to be considered for great SaaS unicorns over the next few years.If your goal is be a global SaaS company, this is a great listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this episode, we discuss the revolutionary concepts of Revenue Intelligence and Advanced Sales Math with Todd Abbott, CEO at InsightSquared.Revenue Intelligence and Advanced Sales Math are critical competencies to successfully maneuver in todays B2B SaaS reality of compressed sales cycle and the changing customer buying journey.The good news - traditional metrics including lead conversion rates, close rates, pipeline coverage ratio, and sales rep productivity still are helpful to calculate basic sales math. Basic sales math is essentially what level of “X” inputs are required to achieve “Y” outcomes.  X being primarily marketing + sales investments and Y being new revenue.Advanced Sales Math takes this concept to another level, and will dramatically increase the performance of the #1 reason why B2B SaaS CRO’s and VP Sales lifespan is less than 18 months. The #1 reason the average CRO / VP Sales tenure is so short - the inherent challenges and low performance of FORECASTING!Research highlights that only 54% of opportunities forecasted to close actually close in the original “closing” accounting period. The average number of times an opportunity “pushes” or changes forecasted close data is 3+ time.A key, new variable in advanced sales math is the ability to factor in buyer engagement metrics, across each step of the buying process across every resource at both the buyer and the seller.  The challenge of traditional “event” based sales processes and forecasting were dependent upon the accuracy and timeliness of data  in CRM systemsThe proliferation of point solution in martech and salestech has led to even more complexity of filtering through the noise to find the right signals to increase forecast accuracy.  Having  integrated Go-To-Market teams coupled with an integrated and unified GTM data source is mandatory to enhance revenue intelligence leading to improved forecast performanceThe concepts covered in this episode of Metrics that Measure Up are thought provoking, and even possibly career preserving for any CEO, CFO and CRO in todays B2B SaaS ecosystem.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.