The Alexander Group, Inc., a revenue growth management consultancy to leading technology companies, announces that findings from the recent XaaS Research: Revenue Models and Productivity are now available. The research focuses on leading practices for XaaS growth and margin including driving efficient logo acquisition, expanding existing accounts via effective upsell & cross-selling, maximizing customer adoption and growing net revenue retention.
The research is comprised of executive interviews and best practices from over 100 tech leaders on more than 30 benchmarks. The findings reveal that XaaS market leaders are growing revenue from existing customers by more than 20% every year. New XaaS revenue models require post-land investments across the entire customer life-cycle and are critical for continued growth and scale.
Additionally, the research shows that over the last two years leading XaaS companies have:
- Increased ACV Per Seller by 27%
- Increased Net Revenue Retention by 11%
- Decreased Expense to Revenue by 25%
“Even with the recent market disruption, technology companies are investing to weather the storm. They continue to apply these levers and find opportunities for growth in a consistently competitive market,” said Ted Grossman, principal at the Alexander Group. “Addressing the needs of a customer that expects 24/7 service and support is requiring a fully functional pre- and post-sales team that is armed with a full set of tools and resources.”
The research focuses on industry concerns, top investment areas and drivers of growth. Research participants receive actionable benchmarks and best practices to compare their organizations on, including:
- Seller productivity
- New customer acquisition costs & qualitative practices
- Support headcount ratios/costs
- Net revenue retention
- Expense/revenue ratios
- Pay levels
Alexander Group conducts ongoing technology research and is expanding participation to provide benchmark comparisons that help clients understand what go-to-market practices leading XaaS companies are leveraging to exceed the Rule of 40.