Definition
The magic number is a metric used in SaaS companies to measure the efficiency of sales and marketing spending, typically calculated by dividing the revenue growth by the sales and marketing expenses.
Related Services
Sales and marketing analytics, business intelligence, and SaaS performance management services help companies track and optimize their magic number for efficient growth.
Problem and Application
A low magic number suggests inefficiency in sales and marketing spending, whereas a high magic number indicates effective use of resources to generate revenue growth.
Conclusion
The magic number is a key metric for SaaS businesses to ensure that they are investing efficiently in sales and marketing to drive scalable growth.
