Glean insights into the current state of Go-to-Market Strategy through a data-driven analysis led by Tomasz Tunguz, Managing Director at Redpoint Ventures. This presentation will outline the Top 10 learnings from the Redpoint 2020 GTM Survey and provide a snapshot of the best practices performed by industry leaders across growth stages. What are the most common structures for sales, account executives, and development representatives teams? How much of your ARR should be spent on marketing programs? What gross margin payback period should you be targeting? These questions and more will be answered in a cohort analysis of over 500 companies.

1. 10 Learnings from Redpoint
2020 GTM Survey
Nick Giometti & Tomasz Tunguz
Redpoint Ventures
Redpoint.com
tomtunguz.com

2. Redpoint Ventures
Seed. Early. Growth.
Redpoint backs exceptional
founders to create new markets
and redefine existing ones.

3. Redpoint 2020
Go to Market Survey

5. Respondent Demographics
n=563

6. 87% of Respondents Between $0k and $150k ACV

7. 90% of Respondents Sub $20M in ARR

8. 82% Raised Less than $50M

9. Respondents Vary Significantly by Target Buyer

10. Most Teams Have Moved to Annual Billing

11. 10 Learnings from the
Redpoint 2020 GTM Survey

12. 1
1:1 AE/XDR Ratios are the
Most Common

13. Most Teams Operate with 1:1 or 2:1 IAE:SDR Ratio

14. In Outside Sales, More Common to See 1:1 AE:BDR

15. 2
XDR Teams Split Evenly
on Goal Metric

16. Quota Metrics for SDRs and BDRs
Role
Meeting
Count
Pipeline Value
SDR 61% 39%
BDR 59% 41%

17. No Difference in Goal Attainment Patterns by Metric

18. 3
XDR Performance Leads
AE Performance

19. When SDRs Hit Quota, 50% of AEs Achieve 95%+ of theirs

20. 4
Tighter Sales Teams
Perform Better

21. Typical Span of Control is about 4.7 AEs / Manager

22. Spans of Control Less than 7 Perform Better

23. 5
Most Ramp AEs in 6
Months

24. Ramp Times Seem Short
Percentile
Inside Ramp
in Months
Outside
Ramp in
Months
25th 6 6
50th 3 5
75th 3 3

25. Inside AE Teams Perform Better with 6 Month Ramp

26. No Real Pattern Across the Outside: Need Salescycle

27. 6
5-10% of ARR Spent on
Marketing Programs

28. A $5-20M ARR Company Typically Spends $1M in Marketing Programs

29. Referrals and Outbound Most Sought After

30. 7
Most Teams Report 13
Month Payback

31. Most Companies Report < 13 Months Payback

32. The Greater the ACV, the Longer the Payback

33. 8
Net Dollar Retention is the
Most Common Customer
Success Goal

34. 38% of CS Teams Goal on NDR with Logo Retention Second

35. 9
40% of Companies Report
NPS > 40

36. Nearly 40% of Respondents have NPS > 40!

37. Curiously, Engineers are the Most Effusive

38. 10
Ratio of Eng:AE Starts at
3:1 and Declines to 1:1 as
a Company Scales

39. Ratio of Eng:Sales Starts at 2:1 and Falls to 1:1

40. Typical Team Headcount as Companies Scale
ARR 0-1 1-5 5-20 20-50 50-100
Engineer
4 12 30 54 68
Sales
2 6 16 41 60
Marketing
1 3 6 9 12
Total
10 35 100 205 360

41. Most Common Leader Titles
ARR 0-1 1-5 5-20 20-50 50-100
Customer
Success Lead Lead VP VP VP
Sales
Lead VP VP CRO CRO
Marketing
Lead Lead VP VP VP

42. Thank you!
Nick Giometti & Tomasz Tunguz
Redpoint Ventures
Redpoint.com
tomtunguz.com

43. Typical Team Structure

44. Typical $1-5M ARR Company Employs 40 People

45. Of Which 15 are Engineers

46. And 6 Are Sales

47. Sales Quota Benchmarks

48. Inside Sales Quota
Percentile Inside Sales Quota
25th 300k
50th 500k
75th 720k

49. Quota Varies by ACV with a Step Up >$15k

50. Outside Sales Quota
Percentile Inside Sales Quota
25th 600k
50th 1,000k
75th 1,625k

51. Quota Grows Linearly with ACV in Outside Sales

52. Inside Sales Quota Steps Up at >$15k

53. Most Teams Achieve 80-95% of Quota

54. As Companies Scale, Attainment Improves (Survivorship
Bias)

55. Many Different Ways to Hit Your Number

56. No Impact on Attainment
ACV ARR
Ramp Time

57. SDR/BDR Quota Benchmarks

58. Better Performing XDR
Teams Lead to Better
Performing AE teams

59. Marketing Benchmarks

60. A 1-5M Startup Typically Has 3 Marketers on Staff

61. Most Marketing Teams Have Tight Spans of Control

62. Demand Generation Grows More Steeply than Other Functions

63. Not Much Difference Across Buyers; IT, Finance, Ops at the Top

64. Customer Success Benchmarks

65. Most CS Teams Operate with SOC of 3

66. As ACVs Increase, So Does Share of CSMs Working on Named Accounts

67. Summary

68. Better Performing XDR
Teams Lead to Better
Performing AE teams

69. Sub 7 Spans of Control
Result in Greater
Performance

70. 1:1 AE/XDR Ratios are the
Most Common

71. 1:1 AE/XDR Ratios are the
Most Common

72. Most Teams Ramp AEs in
6 Months, Both Inside and
Outside

73. XDR Teams Split Evenly
on Key Metric: Meetings or
Pipeline Value

74. Startups Spend Between
5-10% of ARR on
Marketing Programs

75. Most Teams Report 13
Month Payback (Gross
Margin Burdened)

76. Net Dollar Retention is the
Most Common Customer
Success Goal

77. 40% of Companies Report
NPS > 40