Covid's Impact on Software Sales Efficiency
Tomasz TunguzVenture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Covid's Impact on Software Sales Efficiency
More than a year after Covid washed over the software ecosystem and the tide ebbs, it’s revealing the impacts on fundamental metrics of public software companies. Sales efficiency is one of those key metrics. Covid altered the way salespeople and marketers engaged their target markets. Travel collapsed, virtual events blossomed, handshakes became Zoom namastes. How did sales efficiency evolve? Across public software companies, the average sales efficiency fell from 0.6 to 0.51 over the last 3 years. The majority of that fall occured before Covid in 2019. In contrast, sales efficiency improved throughout 2020. Examining the data by quartiles, the sales efficiency has remained largely unchanged. However, amongst the individual names the story differs. Zoom’s sales efficiency tripled, Twilio’s chart smiles, Shopify benefitted from a doubling. But by and large, most companies' sales efficiencs remained relatively constant. This steadfastness in the metrics is all the more remarkable for it’s lack of turbulence. By and large, software companies transitioned to virtual sales seamlessly. Call it a testament to the resiliency of go-to-market teams and their virtual pair-partners, the buyers. The data does imply lengthening sales cycles, lower conversion rates, increased online spending or other leaks in the funnel offset declines in travel and field marketing expense. Virtual selling does have its tradeoffs, but the heartening conclusion is that irrespective of the sales vector, software companies close customers with constant cost-effectiveness. |
Older messages
Would You Work for This Person?
Monday, April 5, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. Would You Work for This Person? Would you work for
The Identity Crisis Facing Open Source Companies in the Cloud
Friday, April 2, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Identity Crisis Facing Open Source Companies in
UIPath S-1 Analysis: How 7 Key Metrics Stack Up
Monday, March 29, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. UIPath S-1 Analysis: How 7 Key Metrics Stack Up
The Importance of Building & Maintaining Great Developer Documentation
Monday, March 22, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. The Importance of Building & Maintaining Great
How Selling Has Changed Post-COVID, and How it Will Change Again Afterwards
Monday, March 15, 2021
Tomasz Tunguz Venture Capitalist at Redpoint If you were forwarded this newsletter, and you'd like to receive it in the future, subscribe here. How Selling Has Changed Post-COVID, and How it Will
You Might Also Like
Peppered Kitty and The Penal Guard 💂♂️
Tuesday, November 12, 2024
The breed of the non-human͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
🗞 What's New: HARO/Connectively is shutting down
Tuesday, November 12, 2024
Also: Use AI to beef up your security ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
the wizard of oz.
Tuesday, November 12, 2024
Read time: 53 sec. Today I want to tell you about Cristiano. He was part of our last Starter Story Academy sprint. And during his first two weeks, he was busy designing and tweaking his landing page.
💃 Beyoncé loves her products...here’s how she did it
Tuesday, November 12, 2024
The exact steps to build your beauty brand empire Hey Friend , We just launched our newest course, How to Build a Million Dollar Beauty Brand. In it, for the first time, Alicia Scott—founder of Range
[CEI] Chrome Extension Ideas #166
Tuesday, November 12, 2024
ideas for Amazon, Twitter, Developers, and Students ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Navattic's PLG funnel with Natalie Marcotullio
Tuesday, November 12, 2024
In conversation with Navattic's Head of Growth about their product-led growth (PLG) funnel. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
You have one shot to sell your business 🤞
Tuesday, November 12, 2024
Just One Week to Go Until Exit Strategy Launches!
Product manager is an unfair role. So work unfairly.
Tuesday, November 12, 2024
How to thrive in “the great flattening” by redefining work norms ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
Growth Newsletter #223
Tuesday, November 12, 2024
It's not "what" but "where" ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
All stock, 6-figure deal
Tuesday, November 12, 2024
Plus, overcome a big barrier to exit planning: owner dependency ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏