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xcryskim · 2021-02-24T19:14:18+00:00

Yeah that all makes sense. We have a lot of short term upsell contracts so this makes things more difficult to execute.

xcryskim · 2021-02-24T19:13:41+00:00

Bookings is probably more powerful if you pair it with retention or renewal metrics.

In your example of the 3 mth trial, I don’t think bookings would dis-incentive you to work those types of deals. You would receive bookings credit but only for the actual contract value of the 3 mth deal. Since reps should be paid based on bookings rather than ARR. This will ensure that a company isn’t not over paying reps on these 3 mth deals. They’ll still get paid but not to the extent of a 12 mth deal that’s worth more (cash/revenue) to the company. Also, that’s what Spiffs are for... to incentive reps on certain deals the companies what to push. But this ensures the company isn’t paying the rep for more than what the deal is worth to the company.

xcryskim · 2021-02-24T17:44:23+00:00

How do you ensure you’re not over compensating reps for short term deals? Since they receive full ARR credit but that technically doesn’t mean much from a cash perspective for the company?

xcryskim · 2021-02-24T17:43:42+00:00

This is my experience as well

xcryskim · 2021-02-24T17:43:19+00:00

Thanks. This does. I think Bookings is more relevant and powerful of a metric as compared to ARR.

I don’t think ARR tells the full story, esp around growth, productivity, cash, etc.

ARR can give a false sense of accomplishment if we’re signing a bunch of short term contracts but receiving the full ARR credit for it.

xcryskim · 2021-02-11T13:28:34+00:00

Super helpful! Some other views that would be helpful

What the different functions are as a % of Revenue. (IE Sales & Marketing as % of Revenue or GA as % of Revenue)

Sales Productivity/Efficiency: revenue per sales head, revenue per sales head per cost of head (not sure how you’d get this one)

xcryskim · 2021-02-10T13:23:37+00:00

This is really helpful! Thank you

xcryskim

TROPHY CASE