Why Benchmark Your Business?
- For budgeting and planning comparisons
- For internal management target setting
- For fund raising and investor presentations
- For acquisition analysis
- For board level discussions and decision-making
We find that all our benchmarking clients use our benchmarking and purchase our benchmarking data reports for one of the above reasons. Research shows that the most successful companies use metrics and benchmarking as a key information and management tool. Benchmarks provide neutral data to provide context for successful management of growth and performance.
At T2 Systems, we migrated our customers to the SAAS business model in 2005. Since then, we struggled to find key benchmark data that we could use to determine the quality of the Company’s financial metrics. OPEX Engine easily filled that void for our team by providing us with key data points ranging from customer acquisition costs to revenue per employee. OPEX is one of our strategic planning tools.
Jim Zaloudek, CFO, T2 Systems, Inc.
Benchmarking also can help highlight the latest changes going on in the market in business models. It helps companies track to industry leaders.
To learn more about how benchmarking can help your business and the latest trends in software and saas benchmarks, here’s a benchmarking presentation from a recent event in New York city especially for software and saas CFOs.
SaaS Conversion Rate Impact Calculator
Three rates make a big impact on any subscription business; conversion from free to paid, upsell, and churn. OPEXEngine and Apptegic developed a calculator to get a first order approximation of the impact of improving these rates on your business. Try it now.
It used to be that benchmarking was used primarily in the manufacturing arena to improve process efficiency and performance. Today, we are seeing some of the same processes being applied to financial and KPI benchmarking to improve business performance and to support data-driven business decision-making within companies.
Companies are also using benchmarking to identify business model changes – and business models won’t stop changing in today’s world.
We always tell companies that deviating from the benchmarks isn’t good or bad, it is just important to understand how and why you are deviating from a benchmark, rather than making decisions based only on internal information. Benchmarking has its limits, but is a useful tool to drive decisions based on data rather than by intuition or how things were done at somebody’s last company. And in today’s complex world, no company can afford to make performance decisions without good quality benchmarks to inform them.
Software and SaaS Benchmarking Reports
OPEXEngine provides high-quality, detailed benchmarking reports for software and SaaS companies.
Annual Software and SaaS Benchmarking Survey
The annual software and SaaS survey is open from 25-Feb through 30-May. Take a look and see if benchmarks for your peers from this survey could be useful to your planning and performance management process – and register to participate in the next annual benchmarking. Companies find participation is a valuable process beyond the value of the information only because it helps them identify the critical metrics that successful software and SaaS companies use to evaluate their businesses.
Our surveys are designed in collaboration with leading CFOs and investors who are building some of the most successful companies today. Most of the companies in the annual OPEXEngine Software and SaaS benchmarking participate regularly.