Sales/Marketing Expense Ratio
Podcast: The Metrics Brothers (fka SaaS Talk)Published On: Fri Feb 28 2025
Description: Common practice is to measure Sales and Marketing expenses as a percentage of revenue, which in the SaaS industry ranges between 20% - 60% based upon stage, growth and efficiency. CAC and Growth discuss an alternative metric which measures the ratio between Sales expenses and Marketing expenses, known as the Sales/Marketing Expense Ratio.During this episode topics discussed include:Sales and Marketing expense as percentage of revenue benchmarksSales and Marketing expense ratio - value and insightsWhat a 2:1 Sales and Marketing expense ratio meansWhat drives a changing Sales and Marketing expense ratioCustomer Acquisition Cost Efficiency metric - CAC Ratio vs S&M Expense RatioIf you are interested in measuring the allocation of the GTM budget between Sales and Marketing, this is a great episode and listen.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
The note was deleted
The note was saved
Your message was sent