
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
In today's dynamic SaaS landscape, understanding your company's sales performance requires more than a one-dimensional approach. The emergence of dual sales methodologies—bottom-up and top-down—has created both opportunities and challenges for executives trying to measure success. This guide explores how to effectively track metrics for both sales motions and leverage their complementary strengths.
Bottom-up selling focuses on individual users or small teams who adopt your product independently, often starting with a free trial or freemium model. These users become advocates within their organizations, gradually expanding usage upward.
Top-down selling targets key decision-makers and executives directly, focusing on enterprise-wide implementation from the beginning. This traditional enterprise approach typically involves longer sales cycles but larger contract values.
According to research from OpenView Partners, 58% of successful SaaS companies now employ a hybrid sales approach rather than relying exclusively on either model. Understanding how to track both is becoming increasingly critical.
Unlike MQLs, PQLs are users who have experienced your product's value through actual usage. Track:
The number of new users an existing user brings to your platform. According to OpenView's 2022 Product Benchmarks Report, products with a viral coefficient above 0.5 grow 20% faster than those without strong viral components.
When both models operate simultaneously, these combined metrics become crucial:
Track how many bottom-up user groups eventually convert to enterprise-wide deals. According to Gainsight, companies that successfully convert bottom-up adoption into enterprise deals see 32% higher annual contract values.
Compare the CAC for bottom-up vs. top-down approaches. Research from ProfitWell indicates that hybrid approaches can reduce overall CAC by 38% compared to pure top-down strategies.
Develop a consolidated view that allows executives to compare metrics from both models side by side. This helps identify which approach works best for different customer segments.
Ensure your CRM and analytics platforms tag customers based on their acquisition path to accurately attribute revenue and growth to each sales motion.
According to research from Forrester, companies with properly unified tracking systems outperform their peers by 23% in annual recurring revenue growth.
While tracking both methods, establish clear KPIs specific to each approach:
Schedule quarterly reviews to analyze the effectiveness of each motion through cohort analysis, ensuring resources are optimally allocated between approaches.
Don't view bottom-up and top-down metrics in isolation. They should inform each other, with insights from user-level adoption influencing enterprise sales approaches.
Clearly define how to attribute revenue when accounts start as bottom-up but convert to enterprise deals. Without clear attribution protocols, you risk creating internal competition rather than collaboration.
Even when one approach shows stronger results, maintain balanced investment. Market conditions can shift rapidly, and having dual capabilities provides resilience.
The most successful SaaS companies today don't choose between bottom-up and top-down sales—they master both and understand how they complement each other. By implementing comprehensive tracking systems that monitor metrics for both motions, executives gain a complete picture of company performance.
As you refine your measurement approach, remember that the goal isn't to declare a winner between methodologies, but to create a harmonious system where each approach strengthens the other. With proper tracking mechanisms in place, you can make data-driven decisions about resource allocation while maximizing growth from all available channels.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.