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Study: Inside the Sales Cycles of 280 SaaS Companies

Vinay Patankar
Vinay Patankar

The document analyzes data from 280 SaaS companies on their sales cycles and outreach processes after a new lead signs up. It finds that on average, companies will contact leads for 9 days through 1 email per day and 65% will transition leads to an automated marketing campaign. Companies that leave voicemails have sales cycles 60% longer on average. Marketing automation, sales emails, and voicemails are the main types of follow up, with 53% of communications being automated emails. MailChimp is the most commonly used marketing automation software.

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What is a sales cycle? When a lead signs up to a SaaS product, the company reacts in a few different ways: Sending automated emails Manual sales emails Calling and leaving voicemails We studied how 280 SaaS companies manage this process, including the volume, content, and cadence of sales outreach.
Methodology Using the details of a fictional Vodafone employee, we signed up to SaaS companies from the Montclare SaaS 250, and the top startups on AngelList. While no follow-up effort from our side was made, we tracked and archived all voicemail and email activity to build a set of over 2,000 data points. Heres how 280 sales teams respond to a high-ticket lead:
Key Findings Companies will follow up for 9 days before stopping contact Companies will send one email per day until the end of the cycle 65% of companies hand you over to an automated marketing campaign 74% of companies don't leave voicemails If a company leaves voicemails, the sales cycle length is usually 60% longer The average marketing drip campaign contains 3 emails x2 Most SaaS companies have two sales contacts per lead MailChimp is the most common email marketing software, used by 49% of the sample 7% of emails have a false re: in the subject line 49% 9% of companies use webinars as a sales tactic
Length of Sales Cycle and Amount of Emails / Voicemails Left We found there are three major categories of communication: 66% of companies use marketing automation as part of the sales cycle while 98% used sales emails. 26% of companies left voicemails, with two voicemails being the average amount of telephone interaction, if any. Marketing automation Sales emails Sales voicemails
The Length of an Average Sales Cycle Combining the data of companies who use all 3 types of outreach, the average cycle length is 9 days. The most persistent company overall was iDoneThis, with 36 points of contact over a month. 37% of companies made only one touchpoint upon sign-up, while 40% made between 3 and 10. The most persistent companies made up only 23% of the set, with anywhere between 11 and 36 emails and voicemails in a month.
The Length of an Average Sales Cycle 9days
Sales Cycle Statistics From Companies who Leave Voicemails While email outreach can be 100% automated (and, in many cases in this study, it was), voicemailing is the sign of a high-touch sales process. In line with this, the average sales cycle length from companies who left voicemails was 160% longer than that of companies who used just email. On average, these companies will send 1 email on the day of signup, then leave a voicemail follow-up the day after.
The Length of an Average Sales Cycle with Voicemails 23days
Sales Cycle Statistics From Companies who Use Only Email The average sales cycle length from companies who use only email was 5 days. The most persistent email-only contact came from iDoneThis, who contacted us 32 times in one month. Other aggressive emailers are Front (15), Makers Row (15), and HubSpot (12). The average amount of emails in an email-only sales and marketing campaign is 3, while most marketing drip campaigns had 5 emails in the sequence.
The Length of an Average Sales Cycle for Email-Only Cadences 5days
On average, sales teams send one email every two days While 41% of companies sent daily emails throughout the cycle, on average sales teams followed up once every 2 days. After the first sales email, the majority of companies waited one day before following up with a voicemail.
53% of emails were marketing communications Around half of the total communications received were automated marketing emails. 33% of companies sent no marketing emails at all, while 39% used fully automated out- reach.
Emails received from salespeople vs. marketing automation Percentage of emails received From salesperson- 47% Automated - 53%
Percentage of companies sending emails through salespeople or marketing automation. Percentage of companies using only salespeople, only automation, or a mix of the two. Only salespeople: 33% Only automation: 39% A mix of the two: 28%
Salespeople were the most common points of contact at 54% We looked at the job titles mentioned in email sign-offs and voicemails, and found that a total of 54% of contact came from those with sales-type jobs (either sales or business development explicitly mentioned). It was also not irregular to be put in touch with the CEOs and marketing managers, especially when the company uses marketing automation.
Sales: 35.87% Marketing: 17.93% CEO / Founder: 7.07% Business Development: 18.48% Account Manager: 9.78% Customer Success: 5.43% Other: 3.26% Support: 2.17% Job titles Of Company Contacts Job title of Emailer
Most commonly used email marketing software by SaaS companies MailChimp is the most used marketing automation software, used by 49% of SaaS companies. The two other major players are Marketo (21%) and HubSpot (19%). The prevalence of HubSpot and Salesforces Marketing Cloud gives us an extra insight into which CRMs these companies are likely using, also.
Marketing Automation Software By Popularity The most common marketing automation software MailChimp: 48.82% Hubspot: 18.74% Marketing Cloud: 3.23% Marketo: 21.16% Eloqua: 3.77% Tout: 3.26% Sable: 2.17% Sidekick: 3.26% Sendgrid: 2.17% Pardot: 3.26% Other: 5.33%
Words and phrases used in sales emails and voicemails
The 5 most common words in sales email subject lines 1. Your 2. Re: 3. Demo 4. Request 5. Trial
The 5 most common phrases in sales email subject lines 1. Follow up 2. Demo request 3. Thanks for your interest 4. Welcome to 5. Free trial
7% of emails used a false re: A re: is often used to make the recipient believe theyre receiving something theyve already replied to. Since, in this study, we didnt send any replies, all re:s are false.
Most common phrases in voicemails 1. Give me a call back 2. My number is 3. The reason Im calling is 4. Feel free to 5. I saw that
The average word count of a sales email 129
The average word count of a marketing email 133
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More Related Content

Study: Inside the Sales Cycles of 280 SaaS Companies

  • 2. What is a sales cycle? When a lead signs up to a SaaS product, the company reacts in a few different ways: Sending automated emails Manual sales emails Calling and leaving voicemails We studied how 280 SaaS companies manage this process, including the volume, content, and cadence of sales outreach.
  • 3. Methodology Using the details of a fictional Vodafone employee, we signed up to SaaS companies from the Montclare SaaS 250, and the top startups on AngelList. While no follow-up effort from our side was made, we tracked and archived all voicemail and email activity to build a set of over 2,000 data points. Heres how 280 sales teams respond to a high-ticket lead:
  • 4. Key Findings Companies will follow up for 9 days before stopping contact Companies will send one email per day until the end of the cycle 65% of companies hand you over to an automated marketing campaign 74% of companies don't leave voicemails If a company leaves voicemails, the sales cycle length is usually 60% longer The average marketing drip campaign contains 3 emails x2 Most SaaS companies have two sales contacts per lead MailChimp is the most common email marketing software, used by 49% of the sample 7% of emails have a false re: in the subject line 49% 9% of companies use webinars as a sales tactic
  • 5. Length of Sales Cycle and Amount of Emails / Voicemails Left We found there are three major categories of communication: 66% of companies use marketing automation as part of the sales cycle while 98% used sales emails. 26% of companies left voicemails, with two voicemails being the average amount of telephone interaction, if any. Marketing automation Sales emails Sales voicemails
  • 6. The Length of an Average Sales Cycle Combining the data of companies who use all 3 types of outreach, the average cycle length is 9 days. The most persistent company overall was iDoneThis, with 36 points of contact over a month. 37% of companies made only one touchpoint upon sign-up, while 40% made between 3 and 10. The most persistent companies made up only 23% of the set, with anywhere between 11 and 36 emails and voicemails in a month.
  • 7. The Length of an Average Sales Cycle 9days
  • 8. Sales Cycle Statistics From Companies who Leave Voicemails While email outreach can be 100% automated (and, in many cases in this study, it was), voicemailing is the sign of a high-touch sales process. In line with this, the average sales cycle length from companies who left voicemails was 160% longer than that of companies who used just email. On average, these companies will send 1 email on the day of signup, then leave a voicemail follow-up the day after.
  • 9. The Length of an Average Sales Cycle with Voicemails 23days
  • 10. Sales Cycle Statistics From Companies who Use Only Email The average sales cycle length from companies who use only email was 5 days. The most persistent email-only contact came from iDoneThis, who contacted us 32 times in one month. Other aggressive emailers are Front (15), Makers Row (15), and HubSpot (12). The average amount of emails in an email-only sales and marketing campaign is 3, while most marketing drip campaigns had 5 emails in the sequence.
  • 11. The Length of an Average Sales Cycle for Email-Only Cadences 5days
  • 12. On average, sales teams send one email every two days While 41% of companies sent daily emails throughout the cycle, on average sales teams followed up once every 2 days. After the first sales email, the majority of companies waited one day before following up with a voicemail.
  • 13. 53% of emails were marketing communications Around half of the total communications received were automated marketing emails. 33% of companies sent no marketing emails at all, while 39% used fully automated out- reach.
  • 14. Emails received from salespeople vs. marketing automation Percentage of emails received From salesperson- 47% Automated - 53%
  • 15. Percentage of companies sending emails through salespeople or marketing automation. Percentage of companies using only salespeople, only automation, or a mix of the two. Only salespeople: 33% Only automation: 39% A mix of the two: 28%
  • 16. Salespeople were the most common points of contact at 54% We looked at the job titles mentioned in email sign-offs and voicemails, and found that a total of 54% of contact came from those with sales-type jobs (either sales or business development explicitly mentioned). It was also not irregular to be put in touch with the CEOs and marketing managers, especially when the company uses marketing automation.
  • 17. Sales: 35.87% Marketing: 17.93% CEO / Founder: 7.07% Business Development: 18.48% Account Manager: 9.78% Customer Success: 5.43% Other: 3.26% Support: 2.17% Job titles Of Company Contacts Job title of Emailer
  • 18. Most commonly used email marketing software by SaaS companies MailChimp is the most used marketing automation software, used by 49% of SaaS companies. The two other major players are Marketo (21%) and HubSpot (19%). The prevalence of HubSpot and Salesforces Marketing Cloud gives us an extra insight into which CRMs these companies are likely using, also.
  • 19. Marketing Automation Software By Popularity The most common marketing automation software MailChimp: 48.82% Hubspot: 18.74% Marketing Cloud: 3.23% Marketo: 21.16% Eloqua: 3.77% Tout: 3.26% Sable: 2.17% Sidekick: 3.26% Sendgrid: 2.17% Pardot: 3.26% Other: 5.33%
  • 20. Words and phrases used in sales emails and voicemails
  • 21. The 5 most common words in sales email subject lines 1. Your 2. Re: 3. Demo 4. Request 5. Trial
  • 22. The 5 most common phrases in sales email subject lines 1. Follow up 2. Demo request 3. Thanks for your interest 4. Welcome to 5. Free trial
  • 23. 7% of emails used a false re: A re: is often used to make the recipient believe theyre receiving something theyve already replied to. Since, in this study, we didnt send any replies, all re:s are false.
  • 24. Most common phrases in voicemails 1. Give me a call back 2. My number is 3. The reason Im calling is 4. Feel free to 5. I saw that
  • 25. The average word count of a sales email 129
  • 26. The average word count of a marketing email 133
  • 27. Track and automate teamwork Sign up for free at process.st Brought to you by