Key SaaS Metrics For 2010 EuroCloud
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This document provides information about an upcoming SaaS conference in Dallas/Fort Worth from January 26-28, 2010. It includes details about keynote speakers and their topics. It also summarizes several research reports produced by Softletter related to SaaS metrics, marketing, sales, compensation and more. The document encourages participants to visit Softletter's website and forums to learn more.
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Key SaaS Metrics For 2010 EuroCloud
- 1. SaaS University Conference: Dallas/Ft.Worth January 26-28, 2010 Keynote:Key SaaS Metrics for 2010 Rick Chapman Softletter, Publisher and Managing Editor www.softletter.com www.saasuniversity.com rickchapman@softletter.com 860.663.0552 (EST/EDT, Killingworth, CT)
- 2. Speaker Jan Aleman, CEO & co-founder Servoy, steering committee SaaS~Cloud, secretary of EuroCloud Servoy:Hybrid development, deployment and integration platform to develop, deploy and manage SaaS and On Premise applications Helped over 200 ISV’s to add SaaS to their offering Servoy has offices in The Netherlands, USA, UK, Spain, France, Germany, Switzerland, Austria, Asia, Romania, Argentina, Brasil, Uruguay and Chile
- 4. Up-to-date information and hard data about software publishers adapting to SaaS, the issues they face, and the strategies and tactics most likely to succeed. Covering Product Development, R&D, Pricing, Channels, Sales and Marketing & Product Management.
- 5. SaaS Marketing Report (460 pgs)
- 6. The most comprehensive marketing reference report in the industry. Analyzes in-depth 22 separate marketing activities providing key metrics for effectiveness, % of budget, plans for future expenditures and much, much more.
- 7. Financial Handbook (451 pgs)
- 9. Telesales Compensation and Sales Efficiency Report
- 11. 2010 SaaS Free and Trial Access Conversion to Sales Report
- 12. 2010 SaaS ReportGo to: www.softletter.com to participate All participants receive complete copy of summary results in future issue of Softletter
- 13. Profitable?
- 14. Did Your Revenue Grow?
- 15. How Do You Price Your Product
- 16. Percentage of Revenue Growth
- 17. Why Do Your Customers Buy SaaS?
- 18. Multi-Tenant?
- 19. Failover?
- 21. Community?
- 22. Community?
- 23. Most Popular Sub Option
- 24. Install Behind Cust. Firewall
- 25. % Who Install Behind Their Firewall
- 26. Company Profiles
- 29. SaaS Marketing ReportResearch Summary Highlights
- 31. E-Mail Campaigns – 67%
- 32. Trade Shows – 67%
- 33. Search Engine Optimization – 62%
- 34. E-Mail Newsletters – 55%
- 35. Webinars – 55%
- 36. PPC (Web Ad) Campaigns – 53%
- 37. White Papers – 53%
- 38. Formal PR Campaigns – 46%
- 39. Official Business Blog – 43%
- 41. Webinars
- 44. Trade Shows
- 45. E-Mail Campaigns
- 47. Web-based Videos
- 51. Webinars – 74%
- 52. PPC (Web Ad) Campaigns – 65%
- 53. Search Engine Optimization – 51%
- 54. Official Business Blog – 48%
- 55. Direct Mail – 45%
- 56. White Papers – 41%
- 57. Web-based Videos – 41%
- 58. Podcasts – 40%
- 59. Trialware software – 35%
- 61. Analyst Marketing - $32,000
- 62. Trade Shows - $30,000
- 63. Print Advertising - $20,000
- 64. PPC (Web Ad) Campaigns - $15,000
- 65. Formal PR Programs - $15,000
- 67. Direct Mail - $10,000
- 68. E-Mail Campaigns - $5,000
- 69. White Papers - $5,000
- 71. How many E-Mail campaignson a monthly basis? Respondents Reporting
- 72. What type of lists do you usefor your E-Mail campaigns?
- 73. In what format do you preferto send your E-Mail campaign?
- 74. What is the typical response foryour E-Mail campaigns? Respondents Reporting
- 75. Rank the effectiveness ofyour E-Mail campaigns
- 76. What % of your overall budgetdo your E-Mail campaigns represent Respondents Reporting The average budget = $124,480 The typical or mean average = $5,000
- 77. Does your company periodically optimize your website for keyword search engines?
- 78. How many keywords or keyword phrases did you optimize your website for over the last 12 months? % of Respondents Reporting
- 79. How often is your website optimized for keyword search engine rankings?
- 80. Over the last 12 months, of the increased traffic to your website, what % converted to actionable sales leads? % of Respondents Reporting
- 81. Over the last 12 months, what % of the increased SEO leads converted to sales? % of Respondents Reporting
- 82. Please rank the effectiveness of your SEO programs
- 83. Over the next 12 months, please indicate your company’s budgetary plans for its SEO programs
- 84. What % of your overall marketing budget do your SEO marketing programs represent? 6% 9% 11% 31% 43% of total respondents The average budget = $7,228 The typical or mean average = $2,000
- 85. Do you conduct webinars?
- 86. How many webinars did you your company conduct over last 12 months? % of Respondents Reporting
- 87. What is the average length of your webinars?
- 88. What types of webinars do you host?
- 89. What is the average attendance of your webinars? Respondents Reporting
- 90. Over the last 12 months, what % of your webinar attendees became actionable leads? % of Respondents Reporting
- 91. Please rank the effectiveness of your webinar programs
- 92. Over the next 12 months, indicate your company’s budgetary plans for its webinar marketing programs
- 93. What % of your overall marketing budget do your webinar marketing programs represent? % of Respondents Reporting Average budget = $15,579 Typical or mean average = $10,000
- 94. SaaS Direct and Telesales ReportsResearch Summary Highlights
- 95. Yearly Quota Assigned to Direct Sales Representatives
- 96. Yearly Quota Assigned to Telesales Representatives
- 97. Average Base Salary- Direct
- 99. Average Time to Close Major Sale – Direct Sales
- 100. Average Time to Close Major Sale - Telesales
- 101. What is the size of your average Direct Sale? Median: $10,000 $50,000 $60,000 $25,000 Class of Software: Desktop/Retail OEM On-Premise/Client Server SaaS Range: $2,000 to $750,000 $10,000 to $75,000 $4,000 to $250,000 $140 to $500,000
- 102. What is the size of your average Telesale? Median: $3,000 $7,500 $5,000 $20,000 Class of Software: Desktop/Retail OEM On-Premise/Client Server SaaS Range: $1,000 to $860,000 $5,000 to $15,000 $500 to $135,000 $250 to $500,000
- 103. What % of Direct SR’s Achieved Quota Last Year? Median: 50% 60% 50% 50% Class of Software: Desktop/Retail OEM On-Premise/Client Server SaaS Range: 0 – 100% 50 – 100% 0 – 100% 0 – 100%
- 104. What % of Tele-SR’s Achieved Quota Last Year? Median: 33% 25% 65% 70% Class of Software: Desktop/Retail OEM On-Premise/Client Server SaaS Range: 0 – 90% 0 – 100% 0 – 100% 0 – 100%
- 105. What is the single greatest source of leads for Telesales?
- 106. What lead generation programs are most effective? Very Effective: Webinars/Videonars (30%), SEO (Search Engine Optimization-27%), Trade Shows (20%). Moderately Effective: E-Mail Campaigns (72%), Webinar/Videonars (48%), White Papers (42%), Telemarketing (40%), Trade Shows (39%), Pay Per Click (38%), E-Mail Newsletters (35%), SEO (31%). Very Ineffective: Print Advertising (22%), Social Media Systems (18%), Direct Mail (18%), Web Ads/Banner Advertising (16%).
- 107. Did you meet or exceed your yearly direct sales plan?
- 108. Did you meet or exceed your yearly Tele-sales plan?
- 109. Free Use and Trial UseResearch Summary Highlights
- 110. Does the free version of your SaaS Product include Revenue generation component?
- 111. What % of your customer base uses free version of product?
- 112. In last 12 months what % of free customers upgraded to paid?
- 113. How new paid subscribers bought premium package
- 114. How long does it take to convert free to paid customers?
- 115. Most Effective Marketing Programs – Free to Paid
- 116. How long do you allow a trial user to access your product?
- 117. Over last 12 months what % of Trial users converted to paid?
- 118. www.Softletter.com This presentation is available as a free download at www.saasuniversity.com Samplers of the SaaS Reports also available If you wish to further discuss points raised in this presentation, please post questions and observations on the Softletter forums You will receive an answer!
- 119. Softletter’s SaaS University: Marketing, Selling, Infrastructure, and Financing, Sponsored by:
Editor's Notes
- These results are suprising given that the ratio of 2:1 was constant across both companies stage of development and revenues. Equally surprising is the fact that 1/3 of SaaS companies conduct no e-mail campaigns at all.
- Almost 90% of respondents answered that their E-mail campaign results were either very effective or somewhat effective. The respondents that answered their results were ineffective were almost all from start-up companies with limited funds and experience. Companies that are conducting systematic campaigns over several months are achieving results.
- There are some notable exceptions to the rule of thumb that the smaller the company the larger the percentage of their marketing budget is being used for selected marketing campaigns as several of the companies in the survey with revenues of $10M answered that between 10% and 20% of their total budgets are devoted to E-mail marketing campaigns. The average marketing budget is $124,480 with the typical or "mean" being $5,000.00
- Most SaaS companies are doing their SEO or Search Engine Optimization internally by a margin of 2:1. Not surprisingly smaller, more budget concious firms make the decision to manage this internally and larger, better financed, companies are using SEO firms to do their optimization.
- It seems the professionals are getting results as 92% of the respondents report their SEO firms as being either somewhat or very effective.
- Do SEO programs work? 97% of our respondents indicated they are either maintaining or expanding their budgets in the coming 12 months, which would indicate a resounding YES!
- While most companies are investing less than 5% of their marketing budgets in SEO marketing progrms there are a substantial number (26%) than are spending 6% to over 20%. Budgets vary from $50 to $60,000. The average budget is $7,228 and the typical or "mean" buget is $2,000.
- 55% of all SaaS companies indicated they conduct webinars as part of their marketing. Further analysis of the responses indicated that larger companies are more likely to invest in webinars than smaller companies at the start-up or early growth stage of development.
- The number of webinars conducted varies dramatically from company to company and the size of the organization and its stage of development does not appear to influence these results.
- The average % of attenddes who register for a forum but do not "show up" for all companies is 31% with the typical or "mean" average being 30%.
- 96% of all SaaS companies that conduct webinars found them to be somewhat or very effective. All these companies plan to maintain or expand their budgets for webinars in the coming 12 months, with 74% indicating they are expnading their budgets.
- 60% of SaaS companies will spend under 5% of their marketing budgets to fund webinar programs, with half of these companies spending less than 1%. The average budget for all companies was $15, 579 and the typical or "mean" average budget is $10,000.
- These results are directly related to the budgets and number of direct mail campaigns executed. Direct Mail requires a regular shedule of mailings and re-mailings to distribution lists to be effective. Therefore, companies with larger budgets are executing this form of marketing well and are getting results. Smaller companies that cannot afford to maintain sustained and repeat campaigns are disappointed in the results.
- These results are directly related to the budgets and number of direct mail campaigns executed. Direct Mail requires a regular shedule of mailings and re-mailings to distribution lists to be effective. Therefore, companies with larger budgets are executing this form of marketing well and are getting results. Smaller companies that cannot afford to maintain sustained and repeat campaigns are disappointed in the results.
- These results are directly related to the budgets and number of direct mail campaigns executed. Direct Mail requires a regular shedule of mailings and re-mailings to distribution lists to be effective. Therefore, companies with larger budgets are executing this form of marketing well and are getting results. Smaller companies that cannot afford to maintain sustained and repeat campaigns are disappointed in the results.
- These results are directly related to the budgets and number of direct mail campaigns executed. Direct Mail requires a regular shedule of mailings and re-mailings to distribution lists to be effective. Therefore, companies with larger budgets are executing this form of marketing well and are getting results. Smaller companies that cannot afford to maintain sustained and repeat campaigns are disappointed in the results.
- These results are suprising given that the ratio of 2:1 was constant across both companies stage of development and revenues. Equally surprising is the fact that 1/3 of SaaS companies conduct no e-mail campaigns at all.
- These results are suprising given that the ratio of 2:1 was constant across both companies stage of development and revenues. Equally surprising is the fact that 1/3 of SaaS companies conduct no e-mail campaigns at all.