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They’ll try to keep underperforming reps around, claiming they need the headcount. Watch out for this red flag: mediocre VPs will insist they need “every warm body” and can’t afford to let anyone go.
It’s just … so many of the AI leaders seem to be doing it with less GTM headcount. Companies under $25M ARR with high AI adoption are running with just 13 GTM FTEs versus 21 for their traditional SaaS peers —a 38% reduction in headcount while maintaining competitive growth rates.
Headcount-to-Revenue Efficiency Gains: $480,000 Per Employee The Numbers : 5,754 employees generating $688M quarterly revenue = $480k revenue per employee per quarter The Learning : $475K+ annual revenue per employee is the benchmark for efficient SaaS operations. vs. total gross margin of 81.9%
And personally, while I’m still in learning mode for AI, I’m not betting on any net reduction in sales headcount from AI. In different ways, at different places. But in most places. Salesforce included. I haven’t seen it yet, and don’t expect to see it.
This guide outlines when it makes sense to outsource quality assurance (QA), the risks to watch for, and how to scale testing without increasing headcount or slowing down engineering. When test coverage falls behind release velocity, quality suffers, and your team feels the consequences.
Hence, Twilio has a very high level of sales efficiency (and relatively small headcount). Many of Twilios bigger customers go through sales, but then a huge amount of the downstream revenue is automatic as customers use more. But theres still a real sales team there. They just only need to directly touch a subset of the total revenue.
He actively approached the CEO to push for dramatically higher targets and accelerated headcount expansion beyond the original plan. 5x Revenue on 5x Headcount Wiz achieved the rare feat of maintaining per-employee productivity while scaling exponentially.
The traditional response advocating for increased headcount while sometimes necessary, is often met with budgetary constraints and a desire for greater operational efficiency. So, how do we reconcile this growing disparity? The answer lies squarely in a strategic and comprehensive embrace of automation.
AI-Native Companies Allocate More Post-Sales Headcount; Traditional SaaS Companies Go Leaner The Organizational Split : Perhaps the most fascinating finding is that AI-native and traditional SaaS companies are evolving their GTM organizations in completely opposite directions.
The Other Team Members section is cumulative with the prior headcount mentioned. So how big of teams are usually expected at each stage? Below are my rough guidelines for a typical SaaS company today. What does the CFO own? The CFO can own A LOT of really important areas many of which are outside of what you may think of as Finance.
Forecast is not only about headcount planning but also revenue numbers—to hit the revenue numbers, what kind of resources do we need?” Forecast Everything, But Plan for Chaos “It’s really hard to forecast when the timing is really good and everything could change.
The Math Is Simple: Manual SDR: 50-100 personalized emails/day AI SDR: 1,000+ personalized emails/day at higher quality AE with AI co-pilot: 40% more time selling, 60% less admin overhead Result: 3-5x pipeline velocity with same headcount Your 90-Day Action Plan: Week 1-2 : Audit where your team spends time (spoiler: 70% isn’t selling) Week 3-6: (..)
They’ll approve marketing spend and headcount increases without the same budget discipline a CEO or CFO would maintain. Problem 2: Budget Discipline Erosion “You spend even more money; there are no controls.” ” CROs are incentivized to hit revenue targets at any cost. Especially in well-funded start-ups.
This success comes from three key components: An account management organization focused on selling new SKUs to existing customers Standalone sales organizations for major product areas An internal “ad system” using machine learning to show customers the products they’re most likely to adopt next The Lesson: Compound Startups Can (..)
They’re: Eliminating unproductive agency relationships Streamlining agency rosters Renegotiating contracts and scopes of work Simplifying overlapping roles Reducing total headcount strategically Twenty-two percent say GenAI has already enabled them to reduce reliance on external agencies for creativity and strategy.
Establishing effective yet efficient ratios requires aligning your CSM headcount with the mechanics of your customer lifecycle design including the definition of the CSM role in your company and the specific activities that achieve successful product adoption with your customers.
There are many CEOs, some of very large public companies, who have commented on what AI means for their headcount plans. There’s currently a lot of jawboning on what will happen to jobs in the age of AI. The pessimistic view is that the job displacement from AI will be massive, leading to a contracting economy.
To what extent will companies raid headcount budget to generate AI budget? A discussion of Andy Wilson ‘s successful exit at Logickull where Jason was an investor and I was an advisor What will be the impact of AI on SaaS budgets? Here, we discuss some data from the Battery report on State of Enterprise Technology Spending.)
GTM efficiency is no longer headcount-driven In the new world, team output = humans × agents. .” If you’re job searching: expect more scrutiny and higher expectations per seat. Your contribution-per-head will matter more than your title. Ops teams building autonomous data clean-up and reporting workflows.
Partner-Led Customer Success is the Future The question isnt whether partner-led customer success is valuable for your enterprise organization its how soon can your company adopt it to scale retention and expansion?
We’ve been taught unicorn math to grow headcount faster than revenue, and maybe if you’re venture-backed, you can do it. But you have to grow revenue faster than headcount. You have to do it all. That might mean you hire fewer but better people.
The Budget Reality : Budget sources: 48% from R&D (down from 59%), 39% from business units, 47% from innovation budgets, 57% from headcount budgets (up significantly), 27% net new budget. Companies are spending 1-8% of total revenue on internal AI productivity, with $1B+ companies spending $34.2M in 2024, scaling to $60.4M
When examining headcount changes over the past 12 months, SDR/BDR teams experienced the most dramatic shifts of any sales function: 36% of companies decreased their SDR/BDR headcount in the last year—the highest percentage among all sales roles surveyed. This suggests something more complex than a wholesale abandonment of the role.
Headcount will only be given if a team cannot automate more of their work.” ” Duolingo CEO Luis von Ahn (all-hands): “AI use will be part of what we look for in hiring. AI use will be part of what we evaluate in performance reviews.
“And I think the budget comes from headcount,” Dave explains. As a line of business owner, if I want to do something, I can find the money from headcount.” ” If I want to pay for an AI SDR, I know where to get the money. ” Is Customer Success Dead, Now That it Reports to Sales?
57x revenue growth with only 3x headcount growth). The Numbers : Wealthfront’s headcount grew only 3x while revenue grew 57x over the past decade – a testament to the scalability of their pure-digital approach. That’s over $1m in revenue per employee. UBS acquisition in 2022, choosing to remain independent.
Salesforce: Actually We’re Going to Hire 2,000 Sales Execs Now To … Sell AI At most B2B companies, 35%+ of the headcount is in sales and its often the largest functional area. Salesforce itself is hiring 2,000 sales execs this year to sell its AI platform, AgentForce. Even in a more efficient world.
Shopify : CEO Tobi Lütke just issued an ultimatum to all employees: “Teams must demonstrate why they cannot get what they want done using AI” before asking for more headcount and resources.
When asked about reports of 30% headcount reductions in many contact centers within just one year due to AI replacing human headcount, Benioff confirmed he’s exploring similar efficiencies at Salesforce. Contact Center Transformation Is Leading the Way in AI The contact center at the bleeding edge of AI transformation.
Ideal Use Case: Lever is best suited for companies that are in scale-up mode for example, a tech company that just got funding and plans to double its headcount, or a mid-market firm expanding into new markets. These organizations often need to fill roles rapidly and continuously, and cant rely only on inbound applicants.
The ones who are glorified account managers can be replaced or just allocated to sales’ budget and headcount. The Productivity Paradox: Engineering Engineering: 0% Headcount Reduction, 20-40% Productivity Boost The Counterintuitive Reality : AI isn’t reducing engineering headcount at top-performing companies.
Scott Barker: Do you think AI is going to reduce our overall headcounts on revenue teams? Or do you think that it’s just going to, maybe that the rules will shift and we’ll have more of these like GTM architects and quarterbacks that are overseeing these different motions?
36% of companies reduced SDR/BDR roles while 34% increased Professional Services teams and 28% increased Account Executive headcount. The Key Insight : Sales teams are undergoing strategic workforce rebalancing.
Real Productivity Gains : 30% of Microsoft’s code is now generated by AI while their headcount actually peaked and is declining. while keeping headcount flat. Companies using AI support are seeing 40%+ headcount reductions while improving customer satisfaction. Revenue keeps growing.
Boosting sales rep efficiency Every inbound lead is enriched with key context, like headcount, HQ location, and business type, so our reps can prioritize the right accounts and tailor their outreach from the start. This means less guesswork, faster qualification, and fewer missed opportunities.
Your CFOs focus on efficiency and profitability means that theyll be open to collaborating on efficiency opportunities that dont necessarily involve headcount cutssuch as leveraging AI and automation to increase customer value delivery at scale. 3: Take these initiatives to collaborate better with your CFO.
The typical trade and field service business relies on revenue from sales and service to run operations, manage headcount, and drive operational growth. However, these profit levers alone may not be enough to help a business achieve its true potential.
Wiz discovered a direct correlation between territory size and productivity: the tighter the territories, the more effective their sales team became. Despite all the sales tech we’ve deployed in the past decade (Gong, Outreach, etc.),
Looking to help your IT team without adding headcount? Registration is now open for the State of SaaS webinar where Jesse Levin will share the top 10 must know statistics for you to succeed this year! Save your seat. Were here to help with the only unified SaaS management platform on the market. Book a demo today.
Allocations can be manual or automatic, depending on the headcount of users. Once you’ve identified your software spending through BetterCloud’s financial and accounts integrations, you can allocate a SaaS budget to different departments.
Schedule a Demo Today The Problem with Traditional Cost Allocation Traditional methods like fixed allocations, headcount-based cost splits, or static percentage models simply don’t reflect reality. Schedule a demo with a BluLogix billing expert today and take the first step towards revolutionizing your revenue management.
And with the advent of more tools, what does that do from a headcount perspective, Mike Walrath: Yeah, so I’m not a big believer that, this is a huge destroyer of jobs. Because what they’re gonna do is they’re gonna eat a lot of this services market, which is a totally different market.
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