The more your SaaS or software company offers a more sophisticated, higher priced solution, the more likely it is you will use a salesforce – yes, one with real people! Their role is to help convince customers of your merits and bring in orders. Whether your salespeople are inside or field representatives will depend on your offering and your target customers. In either case, Sales Ramp Up is relevant – how soon will they generate the right levels of revenue?
One thing is sure: the faster new sales reps can achieve productivity and quota, the more profitable your company will be. Conversely, a business plan for a new company must allow for productivity ramp-up time for sales people. This will have ans. It could even constrain your growth, because you’ll need to pay staff for a certain period before they can contribute full value back to your company.
With this benchmark – “Productivity Ramp Up for Sales Dev., Inside Sales and Field Sales Reps” – Lean-Case give you data on the average time companies must wait before seeing full productivity for these different kinds of salespeople:
To improve your model start-up and ongoing sales productivity further, you may also want to use benchmarks like:
Top 75 Benchmarks for your saaS Business Case
We have selected 75 best practice benchmarks to make reasonable assumptions in numerous situations.
Can you simplify and shorten the purchasing process for the customer? If so, you might then increase your potential for making sales online and decrease your need for salespeople. Overall, you would then reduce the financial impact of the productivity ramp-up time. On the other hand, customization to end-user needs and personal contact may be key differentiators for your solution, compared to competitors. Time to productivity may simply be incompressible.
Through these different benchmarks, you can refine your business pre-launch and launch planning, and your ongoing cash flow and profitability thereafter.
CEO and Founder Lean-Case - Eckhard is a Serial Entrepreneur co-founding cyber-security startup accells acquired by Ping Identity and m-payment startup paybox acquired by Sybase/SAP. As a Business Angel, VC Partner and Investment Advisor, he has realized that turning business models into numbers is a major challenge and must professionalize.
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