COGS

COGS

Version

1.0

Updated

May 2024

Definition

The sum of spend incurred to provision or maintain contracted software for active customers in the period. Servicing Spend includes: software/platform hosting costs, employee costs related to keeping the production environment running, costs of third-party software or data that is bundled into the product, fully-loaded costs of Customer Success and Customer Support, and any other direct employee costs required to deliver the ongoing service.

Business model

B2B SaaS

GTM Model

Enterprise, Hybrid

Metric expression

Metric label

COGS

Metric ref

COGS

Unit

$

Periods

Month, Quarter

Source system

Accounting/Bookkeeping; ERP

Complexity

Composite

Owning team(s)

Finance

Watching team(s)

Customer Support
Customer Success

Metric Set(s)

Financials

Metric Themes(s)

Capital Efficiency

Optimization Strategies for Accepted Opportunities

Improving Accepted Opportunities hinges on enhancing lead quality, alignment between marketing and sales teams, and fine-tuning the lead qualification process. Focusing on these key areas will ensure that AEs engage with high-value opportunities that are more likely to convert into customers.

Enhance Lead Quality: Refine marketing strategies to attract higher-quality leads by targeting the right audience segments and using personalized messaging. High-quality leads improve the likelihood of acceptance by AEs.

Strengthen Sales and Marketing Alignment: Foster collaboration and communication between sales and marketing teams by setting clear KPIs, hosting joint meetings, and using feedback loops. Sales can provide valuable insights to marketing on the type of leads that should be targeted.

Implement Rigorous Lead Qualification: Adopt a robust lead scoring system and qualification process to ensure that only leads meeting certain criteria are passed on to AEs. Use metrics such as firmographics, engagement level, and intent to evaluate leads.

Increase AE Training and Support: Provide AEs with comprehensive training on ideal customer profiles and objection handling. Continuous education and support enable AEs to make more informed judgment calls on accepting opportunities.

Utilize Advanced Analytics: Leverage analytics tools to gain insights into the patterns and behaviors of leads that turn into accepted opportunities. Use data to continuously refine and improve your lead gen and qualification process.

Inputs

Components

This metric does not have any component inputs.

Outputs