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Sales strategies for SaaS companies require careful planning and a lot of attention from your sales team if you're to keep those subscriptions rolling and your customers happy and engaged. Metrics play a significant role in helping you generate more opportunities for your sales team, but many companies are unsure about which metrics to pay attention to or how to even access this data.
HubSpot's Sales Pro was designed using inbound marketing principles to help businesses organise their activities and engage in meaningful tactics and strategies that deliver measurable results.
The sales metrics that make a difference
Conversion rate
In terms of sales, conversion rate is the number of leads who've become paying customers.
Formula:
[Total Number of Sales] / [ Number of Leads ] x 100
Customer churn rate
The number of customers who cancelled a subscription or ended their commitment to your business in a given period.
Formula:
[Number of Clients that Left by the End of the Month] / [ Total Number of Clients that Paid for the Next Month] x 100
Lead-to-customer conversion rate
The number of leads that have converted into customers in a specific time period. This metric will show you how your conversion stage content is faring.
Formula:
[Total Number of Monthly Customers] / [ Total Number of Monthly Leads] x 100
Win rate
The number of opportunities that your sales team managed to convert into sales.
Formula:
[Number of Opportunities] / [Total Opportunities] x100
Annual recurring revenue
The income that accumulates annually as a result of subscriptions or contracts paid for by customers.
Formula:
(Overall Subscription Cost Per Year + Recurring Revenue from Add-ons or Upgrades) - Revenue Lost from Cancellations
Monthly recurring revenue
Income derived from monthly paid subscriptions. This figure often shows your company's growth potential.
Formula:
Number of Customers X Average Monthly Fees = Average Monthly Recurring Revenue Per User (ARPU)
Then...
ARPU X Total Number of Paying Customers = MRR
If you’d like to learn more about the SaaS metrics that need your attention, read our blog titled 6 SaaS Sales Metrics And What They Mean.
How to make impactful changes to your SaaS Sales Plan
For SaaS businesses, steady growth is essential.
To achieve this, regularly reviewing your SaaS sales plan is necessary. Since you're selling a web-based software product, your marketing and sales plan has to be incredibly responsive to the improvements and advances in your industry in order to keep up with competitors. Your sales plan needs to be as good at acquiring customers as it is at retaining them – particularly if you sell a subscription-based product.
With HubSpot's Sales Pro, you can increase the efficiency of your plan at every step. You can automate tedious tasks and free up more time for your sales team to focus on the important stuff: selling.
Since a successful sales plan relies on data, you can use Sales Pro to view your entire pipeline and immediately look at the metrics that affect performance. Pull up custom reports and optimise the time you spend in meetings with your sales reps by having all the pertinent information to hand. Access to these kinds of features will help your business to operate one step ahead of the competition by reducing the time wasted on activities that distract from lead generation and conversion.
Perhaps one of the most significant changes that the HubSpot Sales Pro platform will bring to your overall sales strategy is greater alignment between sales and marketing. The hub connects all your channels and gives a clear picture of what's working in terms of sales initiatives and what needs reviewing. Marketing can then use this information to create better content and more effective awareness, consideration and conversion stage campaigns.
Designed to boss the sales metrics
With HubSpot Sales Pro, you can truly focus your activities on the outcomes you want to see around the metrics you're most concerned about. For example, if you want to boost conversion rates, you can look at the predictive lead scoring tool to making sure you're targeting the right prospect and sending them the right content.
To prevent churn, use the notification tools to keep on top of subscriptions or free trials that are coming to an end, this can prepare your sales reps with the information they need to reach out and check in with customers who may have been quite happy to stay with you but would have slipped through the cracks had they not received a more personalised approach to retention.
Start growing your SaaS revenue by empowering your sales team with the right analytics and the tools to help them control and optimise their processes. You can download the SaaS Sales Pro toolkit to discover new sales opportunities and capitalise on them more effectively.
