Sales & Marketing Efficiency Ratio
Calculator

Fluency in data analytics raises productivity
by up to 10% and cuts planning time by 66%

For maximum efficiency, the left-hand needs to know what the right is doing. Synergy between sales and marketing teams brings in the right leads and increases revenue.

To see how you can improve your sales and marketing efficiency, input your ARR growth, over 2 consecutive time periods (years, quarters, etc), along with your sales and marketing expenses to calculate how to lift your Go-To-Market efficiency.

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What the numbers mean

A ratio of ≤ 0.5 typically indicates that there is not a sustainable growth model. This means that your sales and marketing teams need more efficiency and alignment in their initiatives.
A ratio of 0.5–1 indicates sales and marketing teams are efficient to a degree that many investors consider acceptable. This does not necessarily mean capital efficient, which is a difficult ratio for a bootstrapped company to maintain for any length of time.
A ratio of ≥ 1 indicates strong sales efficiency and a capital-efficient growth model. Though there is a caveat—if the efficiency ratio is much higher than 1, you are probably under-investing in sales and marketing initiatives and may be not be growing as efficiently as possible.

*Results are an estimate only; your results may vary

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