The Secret to Smarter Growth

Find out if your average sales price is affecting revenue.

Author

Aleksandar Stojanovic
November 03, 2024 • Read Time: 8 minutes

In partnership with

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WELCOME TO ISSUE NO #031

📆 Today’s Rundown

Hey 👋, in the latest issue, we discussed why tracking Annual Contract Length matters, and now we are moving with the next topic from Bookings & Customers content, and today’s topic is:

Average Sales Price

Is Your ASP Informing Your Sales Strategy? Let’s Break It Down.

Newsletter highlights

  1. 3 Reasons Why ASP Matters 🤟

  2. ASP Stat of the Week 🔢

  3. My Tool of the Week 📊

  4. Latest Week Content Update 🆓

3 Reasons Why Tracking ASP Matters

  1. It’s a quick check on how you’re selling:

  • ASP, or average sales price, shows how much revenue each new customer brings in on average.

  • In SaaS, it’s like the pulse check for your pricing and sales strategy.

  • If you know your ASP, you can see if your product’s value lines up with what customers are willing to pay, which helps you get a sense of how well your sales efforts are working.

  1. It reveals hidden insights in your customer segments:

  • When you start breaking down ASP by market, region, or even individual sales reps, you get a clear look at where your revenue is actually coming from.

  • Maybe certain markets have larger deal sizes or some reps are great at landing higher-value customers.

  • These insights can help you fine-tune where you spend on marketing, how you coach your sales team, or where you could grow faster.

  1. It’s a reality check on customer acquisition costs:

  • ASP can keep your customer acquisition costs (CAC) in line.

  • By tracking how much each new customer brings in compared to what you’re spending to acquire them, you can set limits that make sure each sale is adding real value to your bottom line.

  • This balance helps you avoid overspending on customers who might not stick around long enough to be profitable.

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ASP Stat of the Week

$24,000

In 2020, Twilio acquired Segment, a customer data platform, for $3.2 billion. At the time, Segment had approximately 20,000 customers. Assuming an average sale price (ASP) of $24,000 per customer, this would equate to an annual revenue of around $480 million. This acquisition allowed Twilio to enhance its customer engagement platform by integrating Segment’s data capabilities, enabling more personalized and impactful customer interactions.

My Tool of the Week

IHubSpot Sales Hub is a powerful CRM that helps SaaS teams track key sales metrics, including ASP.

Here’s how it can add value:

  • Pipeline Overview: See your sales pipeline at a glance to quickly identify high-potential leads.

  • Customer Segmentation: Sort customers by ASP, location, or other factors to sharpen your approach.

  • Detailed Performance Reports: Track ASP by sales rep or industry to uncover patterns and boost results.

What’s great about this tool?

It pulls all your sales data into one place, making it easier to analyze ASP and use it to guide your next moves. Perfect for keeping a clear view on your growth and staying agile as you scale.

Latest week content update

Here is the latest week content which

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Aleksandar Stojanovic
Founder of Fiscallion
Fractional CFO & FP&A Boutique Consultancy

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