There are about 46 publicly traded software-as-a-service and platform-as-a-service businesses and there’s a strong correlation between revenue growth and the value of the business. The most valuable businesses have grown 200% in the last year. In this Heavybit Speaker Series presentation Redpoint Ventures' Tomasz Tunguz teaches SaaS companies how to emulate these patterns by reducing their customer churn. Video available here: http://www.heavybit.com/library/developer-go-to-market/video/2013-11-12-tomasz-tunguz

1. aaS Benchmarks
!
Tomasz Tunguz
Redpoint Ventures
tomtunguz.com/saas!

3. Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)

6. Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)

7. Customer Acquisition Model

9. Inside Sales! Outside / Field Sales
OTE in $k 65 350
Annual Quota in $k 400 1250
Sales Size in $k 10 250
Sales Velocity / Quarter 10 1.3
Close Rate 20% 30%
Annual Leads Req’d 200 17
Rev / CoS 5 3
Sales Team Benchmarks

10. CAC Payback = 15 mos

11. Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)

12. Pricing Structures

13. Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)

14. Grow through Sales

15. Grow through Upsell

16. Grow Organically

17. Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)

18. http://tomtunguz.com/revenue-at-risk/
Revenue at Risk: 1-3%

19. Customer 1st Year

20. Saved Customer

21. Churned Customer

22. max Revenue Growth =
Customers x
!
Avg. Contract Value x
!
(Growth Rate - Churn Rate)