Competitor Xero has just issued a call looking for benchmarking partners comparing metrics like:
- Customer acquisition rates
- Teaming model and allocation of spend
- Sales and marketing spend
- Sales quotas
- Google spend
- Pipeline conversion
CEO Rod Drury is looking for 5-10 partners, communicating either directly, or through a trusted third party. Either way, its quite a challenge, as unlike the aggregate anonymous data Freshbooks provides to their customers, this level of sharing requires quite a level of trust.
Interestingly I contemplated similar ideas just a few days ago when Zoho CEO Sridhar Vembu published his margin analysis of Google, SAP, Oracle, Microsoft and a few others. He drew a conclusion that since Google’s current revenue and profit per employee metrics were much higher than even the best players in the application space, Google has little incentive to move into this space forcefully. (He then followed up with a What’s in it for Zoho? post)
Specific conclusions aside, I thought it would really be interesting to expand this spreadsheet buy including Zoho and comparable companies as well as additional metrics. Needless to say I ran into a similar dilemma that Xero is facing now: these are private companies that don’t typically publish their financial results, to get them participate we would need a relatively larger sample and it would still require a leap of faith.
Rest assured I’ll be watching Xero’s experiment with great interest.