Connect with us

zephyrnet

To measure sales efficiency, SaaS startups should use the 42

Avatar

Published

on

Once you’ve found product/market fit, scaling a SaaS business is all about honing go-to-market efficiency.

Many extremely helpful metrics and analytics have been developed to provide instrumentation for this journey: LTV (lifetime value of a customer), CAC (customer acquisition cost), Magic Number and SaaS Quick Ratio are all very valuable tools. But the challenge in using derived metrics such as these is that there are often many assumptions, simplifications and sampling choices that need to go into these calculations, thus leaving the door open to skewed results.

For example, when your company has only been selling for a year or two, it is extremely hard to know your true lifetime customer value. For starters, how do you know the right length of a “lifetime?”

Taking one divided by your annual dollar churn rate is quite imperfect, especially if all or most of your customers have not yet reached their first renewal decision. How much account expansion is reasonable to assume if you only have limited evidence?

LTV is most helpful if based on gross margin, not revenue, but gross margins are often skewed initially. When there are only a few customers to service, cost of goods sold (COGS) can appear artificially low because the true costs to serve have not yet been tracked as distinct cost centers as most of your team members wear multiple hats and pitch in ad hoc.

Likewise, metrics derived from sales and marketing costs, such as CAC and Magic Number, can also require many subjective assumptions. When it’s just founders selling, how much of their time and overhead do you put into sales costs? Did you include all sales-related travel, event marketing and PR costs? I can’t tell you the number of times entrepreneurs have touted having a near-zero CAC when they are just starting out and have only handfuls of customers — which were mostly sold by the founder or are “friendly” relationships.

Even if you think you have nearly zero CAC today, you should expect dramatically rising sales costs once professional sellers, marketers, managers, and programs are put in place as you scale.

One alternative to using derived metrics is to examine raw data, which is less prone to assumptions and subjectivity. The problem is how to do this efficiently and without losing the forest for the trees. The best tool I have encountered for measuring sales efficiency is called the 4×2 (that’s “four by two”) which I credit to Steve Walske, one of the master strategists of software sales, and the former CEO of PTC, a company renowned for its sales effectiveness and sales culture. [Here’s a podcast I did with Steve on How to Build a Sales Team.]

The 4×2 is a color-coded chart where each row is an individual seller on your team and the columns are their quarterly performance shown as dollars sold. [See a 4×2 chart example below].

Sales are usually measured as net new ARR, which includes new accounts and existing account expansions net of contraction, but you can also use new TCV (total contract value), depending on which number your team most focuses. In addition to sales dollars, the percentage of quarterly quota attainment is shown. The name 4×2 comes from the time frame shown: trailing four quarters, the current quarter, and the next quarter.

Color-coding the cells turns this tool from a dense table of numbers into a powerful data visualization. Thresholds for the heatmap can be determined according to your own needs and culture. For example, green can be 80% of quota attainment or above, yellow can be 60% to 79% of quota, and red can be anything below 60%.

Examining individual seller performance in every board meeting or deck is a terrific way to quickly answer many important questions, especially early on as you try to figure out your true position on the Sales Learning Curve. Publishing such leaderboards for your Board to see also tends to motivate your sales people, who are usually highly competitive and appreciate public recognition for a job well done, and likewise loathe to fall short of their targets in a public setting.

4x2

A sample 4×2 chart.

Some questions the 4×2 can answer:

Overall performance and quota targets

How are you doing against your sales plan? Lots of red is obviously bad, while lots of green is good. But all green may mean that quotas are being set too low. Raising quotas even by a small increment for each seller quickly compounds to yield big difference as you scale, so having evidence to help you adjust your targets can be powerful. A reasonable assumption would be annual quota for a given rep set at 4 to 5 times their on-target earnings potential.

Read more: https://techcrunch.com/2019/12/06/to-measure-sales-efficiency-saas-startups-should-use-the-4×2/

zephyrnet

Coinbase Custody selected by 21Shares for Bitcoin ETP

Avatar

Published

on

Coinbase

Today we’re proud to announce that 21Shares AG has chosen Coinbase Custody to store its digital assets for its Bitcoin ETP. 21Shares AG is listing its 21Shares Bitcoin ETP (ISIN: CH0454664001 — WKN A2T64E) on the Deutsche Börse’s Xetra electronic venue on Thursday July 2nd 2020. Coinbase Custody will serve as custodian for the underlying assets of their Bitcoin ETP.

21Shares selected Coinbase Custody after reviewing our institutional-grade offline storage solution, which includes world-class security, regulatory compliance and insurance coverage. Coinbase is committed to serving a wide spectrum of institutional clients and we are excited to be the chosen custodian for the 21Shares Bitcoin ETP, Europe’s first physically-backed bitcoin ETP.

Hany Rashwan, CEO at 21Shares AG, says, “21Shares is delighted to bring this historic product to Europe. We are honored to give investors access to the best performing asset class of the last decade and we believe the next ten years as well, through our simple, transparent, and regulated crypto ETP product suite.”

Coinbase Custody is the world’s largest and most trusted crypto custodian. To learn more about Coinbase Custody click here.

Source: https://blog.coinbase.com/coinbase-custody-selected-by-21shares-for-bitcoin-etp-a1b5dd380694?source=rss—-c114225aeaf7—4

Continue Reading

zephyrnet

Compound (COMP) is now available on Coinbase Earn

Avatar

Published

on

Coinbase

Earn COMP while learning how to borrow crypto and earn interest with Compound

Coinbase’s mission is to create an open financial system, where anyone in the world can participate on equal terms from their computer or smartphone. To bring this vision to life, we’ll need to make blockchain technology more accessible, both in the sense of making cryptocurrencies easier to obtain and easier to understand.

Coinbase Earn is a trusted source where customers all around the world can educate themselves about new developments in crypto and earn assets as rewards. Starting today, Coinbase customers can start earning Compound (COMP) by watching lessons and completing quizzes about the Compound protocol and its governance token COMP.

Compound (COMP) is an Ethereum token that governs the autonomous Compound protocol. The protocol allows anyone to borrow and lend Ethereum tokens through a decentralized market. Lenders earn interest on the crypto they supply to the protocol and borrowers pay interest to borrow it.

The ability to earn crypto assets has become an increasingly important function in the crypto ecosystem — alongside buying, staking, voting, and mining — especially when paired with education.

Since the launch of Coinbase Earn in 2018, we’ve announced nine different assets, including 0x, Basic Attention Token, Zcash, Stellar Lumens, EOS, Dai, Tezos, Orchid and now Compound. In less than a year, asset issuers offered over $100M in crypto to distribute to our customers, and we have launched Earn internationally. As we expand globally, millions of people are gaining access to a trusted, secure, and legal bridge to the crypto economy — even if they don’t have a credit card or bank account with which to buy crypto.

Check out all Coinbase Earn campaigns through our homepage or access them directly through the Coinbase mobile app.

You can sign up for a Coinbase account here and download the iOS or Android app to start earning crypto today.

Coinbase receives a servicing fee from the participating asset issuer. Consideration for Coinbase Earn is wholly independent of our digital asset framework for new listings. Click here for our Earn FAQ and terms.

Source: https://blog.coinbase.com/compound-comp-is-now-available-on-coinbase-earn-74cb88acbf78?source=rss—-c114225aeaf7—4

Continue Reading

zephyrnet

Compound (COMP) is now available on Coinbase

Avatar

Published

on

Coinbase

Starting today, Coinbase supports Compound (COMP) at Coinbase.com and in the Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store COMP. COMP will be available for customers in all Coinbase-supported regions, with the exception of New York state.

Compound (COMP)
Compound (COMP) is an Ethereum token that governs the Compound protocol. The protocol allows anyone to supply or borrow Ethereum tokens through a decentralized market. Suppliers earn interest on the crypto they supply to the protocol and borrowers pay interest to borrow it.

One of the most common requests we hear from customers is to be able to buy and sell more cryptocurrencies on Coinbase. We published a process for listing assets, designed in part to accelerate the addition of more cryptocurrencies. We are also investing in new tools to help people understand and explore cryptocurrencies. We launched informational asset pages (see COMP here), as well as a new section of the Coinbase website to answer common questions about crypto.

You can sign up for a Coinbase account here to buy, sell, convert, send, receive, or store COMP today.

Coinbase owns COMP tokens as a result of a 2018 investment in Compound. Coinbase intends to maintain its investment in Compound for the foreseeable future and maintains internal policies that address the timing of permissible disposition of its digital assets, including COMP tokens.

Source: https://blog.coinbase.com/compound-comp-is-now-available-on-coinbase-de42a317790c?source=rss—-c114225aeaf7—4

Continue Reading
AR/VR3 hours ago

The VR Job Hub: Asobo Studio, ARVI & Fun Train

Blockchain10 hours ago

Yield Farming Fuels Buzz Around DeFi, but Fundamentals Are Lagging

Blockchain16 hours ago

South Korean Beachgoers Can Now Use Bitcoin to Pay for Services

Blockchain17 hours ago

Price Highs, Bull Runs, and Thieves: Bad Crypto News of the Week

Blockchain17 hours ago

Massive Short Squeeze Prompts Chainlink (LINK) Price to Rally 52%

Blockchain17 hours ago

Cryptocurrency Cards: An Unnecessary Solution That Should Be Stopped

Blockchain19 hours ago

Kava Labs Partners with BNB48 Club to Raise BNB DeFi Awareness

Blockchain20 hours ago

Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

Blockchain22 hours ago

Cryptocurrency News From Japan: August 2 – August 8 in Review

Blockchain23 hours ago

Polish Financial Watchdog Impersonated by Crypto Scammers

Blockchain23 hours ago

Chinese State Grid Launches Blockchain-Based Blackout Insurance Policy

Blockchain24 hours ago

Mobile DeFi and the Shift Toward Self-Sovereignty

Blockchain1 day ago

BTC and ETH Crypto Derivatives in Demand, Market Expected to Grow Further

Covid191 day ago

Virginia Supreme Court Grants Temporary Moratorium on Evictions

Blockchain1 day ago

Bitcoin is Almost as Big as Bank of America

Blockchain1 day ago

The Price of Bitcoin Is Facing Its Final Resistance Zone Before $15K

AR/VR1 day ago

Virtual Reality: The Solution for the Present and Future of Events — Simlab IT

Cannabis1 day ago

FREE Webinar September 17: Hemp CBD Q&A

Blockchain1 day ago

Richard Stallman: A Discussion on Freedom, Privacy & Cryptocurrencies

AR/VR1 day ago

VR Escape Room Specialist ARVI Partners With HTC Vive to Expand Global Deployment

Blockchain1 day ago

Slow But Steady: FATF Review Highlights Crypto Exchanges’ Struggle to Meet AML Standards

Science1 day ago

Première biopsie liquide à recevoir l’approbation de la FDA pour le profilage complet des tumeurs dans tous les cancers solides, le diagnostic compagnon Guardant360® de Guardant Health gagne en crédibilité auprès des oncologues en Asie, au Moyen-Orient et en Afrique.

Covid191 day ago

2 Out Of 3 Churchgoers: It’s Safe To Resume In-Person Worship

Blockchain1 day ago

Title Token for Blockchain Estate Registry, Part 3

Blockchain1 day ago

Eerily Accurate Analyst Thinks Bitcoin Could Hit $20,000 in the Next 3 Months

Blockchain1 day ago

Ransomware Attacks Demanding Crypto Are Unfortunately Here to Stay

Science1 day ago

Ever-Glory To Report Second Quarter 2020 Earnings on August 14, 2020

Cyber Security2 days ago

Bitglass Security Spotlight: Over 200k Instacart Users’ Data Is Being Sold on Dark Web

Blockchain2 days ago

Analysts Fear an Ethereum Drop to $300 As Price Becomes “Heavy”

Science2 days ago

WeissLaw LLP Reminds GRUB and NBL Shareholders About Its Ongoing Investigations

Science2 days ago

SHAREHOLDER ALERT: WeissLaw LLP Reminds OTEL and DCOM Shareholders About Its Ongoing Investigations

Science2 days ago

SHAREHOLDER ALERT: WeissLaw LLP Reminds MXIM and TORC Shareholders About Its Ongoing Investigations

Science2 days ago

WeissLaw LLP Reminds CNXM and ONDK Shareholders About Its Ongoing Investigations

Blockchain2 days ago

Major South Korean Bank Joins the Crypto Custody Business

Blockchain2 days ago

Bullish Bitcoin Price Trend Intact Even After BTC Retests $11.4K Support

Blockchain2 days ago

BitMEX Leaderboard Trader Fears Bitcoin Could See a Second “Flash Dump”

Blockchain2 days ago

Analyst: Bitcoin May “Teleport” to $13,000 if It Breaks Key Level

Blockchain2 days ago

Adam Back: Some ICOs Funded Useful Research Despite Being Unethical

Covid192 days ago

Gov. Cuomo Clears The Way For In-Person Learning At Schools In New York State

Blockchain2 days ago

An Official North Dakota Cryptocurrency Could Be on the Horizon

Trending