Good benchmarks for sales productivity in SaaS depend on your stage, ACV (average contract value), and sales model, but here are some key metrics to focus on:
- Quota Attainment: A good rule of thumb is that 70%-80% of your sales reps should hit quota. If fewer than 50% are hitting quota, you likely have a problem with either your quotas being too aggressive, your lead flow being insufficient, or your sales process being inefficient.
- Ramp Time: For SaaS companies with an ACV of $20K-$80K, ramp time for a new sales rep should be around 3-6 months. For an SMB sale of $10k or less, ideally, a rep is ramped in 60 days. If it’s taking longer, you may need to refine your onboarding or training processes.
- Sales Efficiency: A strong sales efficiency metric is $1 of new ARR for every $1 spent on sales and marketing. Early-stage startups might be less efficient, but as you scale, you should aim for this 1:1 ratio or better.
- CAC Payback Period: For most SaaS companies, a CAC payback period of 12 months or less is ideal. If it’s over 18 months, you’re likely overspending on customer acquisition relative to your revenue.
- Revenue Per Sales Rep: At scale, a good benchmark is $500K-$1M in ARR per sales rep annually. For higher ACV products, this can go up significantly. Some SMB products can push this a tiny bit lower, but not much.
- Pipeline Coverage: Your sales team should have 3x-4x their quota in pipeline coverage at all times. If it’s lower, they’re likely not prospecting enough or your marketing isn’t generating sufficient leads.
- Win Rates: A healthy win rate for SaaS sales is around 20%-30%. If it’s significantly lower, you may have issues with lead quality, product-market fit, or sales execution.
- Burn Multiple: For early-stage SaaS companies, a burn multiple of 1-1.5 is considered good. This measures how much capital you’re burning to generate $1 of net new ARR. Lower is better, but early on, it’s normal to be less efficient 9.
These benchmarks are directional, and your specific numbers will vary based on your business model, ACV, and stage. If you’re not hitting these, it’s a signal to dig deeper into your sales process, team, or overall strategy.
And come learn metrics and more from the best GTM leaders in SaaS, Cloud and AI at SaaStrAnnual.com 2025, May 13-15! From the head of GTM at OpenAI, to the CRO at Perplexity, to the CRO of ServiceTitan, the best of the best will be at 2025 Annual!
Advocate for Child Safety | Championing Educator Wellbeing | Creating Safe, Supportive Learning Environments
4moGreat read!