Vik Singh, cofounder of Infer wrote about STC in his post in Latka B2B SAAS Blog and it brings a simple yet arguably a very effective way to assess the health and state of a startup (or any company for that matter) and apparently VC’s are paying a lot of attention to what Vik calls “STC”.
It is easy to use a free Linkedin in account to figure the current number of heads in the sales department and those who left. Then you factor the date the company was started to find at what rate the sales team is churning. That indicates many things : “The more reps you have, the more deals you can close. The more reps you have, the more market demand you have. The more reps you have, the more you’re spending to drive growth….The twist with STC, is that we’re …also factoring in the attrition rate. So, the less reps churned, the more reps that are hitting their quotas.”
Tracking churn over a period of time can show the direction the company is heading. It’s a transparent metric and data is publicly available for most companies. It can be as important as customer churn (post #295). A great new idea to pursue as you look at your own company and benchmark with your competitors.
Where I learnt this #353
How to Calculate the Sales Performance of Any Company in Two Minutes Flat