The Rule of X is a recently published SaaS metric that factors in the relevant importance of growth rate and operating profitability for B2B SaaS companies. Sam Bondy is the co-author of this metric and shares the catalyst for creating the metric, the latest trends and how the Rule of X impacts Enterprise Value to Revenue multiples.

Sam joined me as a speaker at the recent SaaS Metrics Palooza to provide the details behind the metric and why it is an important metric that helps to evolve the traditional Rule of 40 metric.

This episode is part of the "SaaS Metrics Palooza" re-load series on the Metric that Measure Up podcast.

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SaaS buyers complete ~70% of the buying process before they speak to a vendor's sales organization. As a result more and more SaaS companies are leveraging interactive product demonstrations on their website which is the topic of today's episode. Natalie Marcotullio, Head of Growth at Navattic discusses their recent "State of Interactive Product Demonstrations" with our host Ray Rike where they cover multiple topics including:

• The State of Interactive Product Demonstrations
• To Gate or Not to Gate - what is the best practice
• Measuring the Impact of “Self-Directed” Interactive Demonstrations

In 2024, almost 12% of SaaS companies are providing interactive product demonstrations on their website which is an increase from 9.3% in 2023. Surprisingly, 73% of interactive demonstrations are not gated, and one primary reason is that non-gated interactive demonstrations have a 10% higher engagement rate.

How do we measure engagement on interactive demonstrations? Natalie highlighted four: 1) Number of users who get past step one of the demo; 2) Number of users who complete the demo; 3) Users who click at least one CTA to an external resource and; 4) time spent on the interactive demonstration.

Of course, at the end of the day measuring the outcomes from an investment in an interactive demo is critical, and the top two metrics that Natalie recommends include the number of qualified leads and win rate from those leads and users who engaged with the interactive demonstration.

If you are looking for new ways to engage with your target buyers and ensure your product is initially understood and evaluated by potential buyers, this is a great conversation to understand how to introduce and leverage the power of self-guided, interactive demonstrations on your website!

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The possibilities of combining AI with the collective intelligence from hundreds of B2B companies to increase their customer acquisition efficiency are limitless. Stephen Messer, Founder and CEO of Collective[I] shares his unique insights into how the potential is becoming a reality for many B2B companies. During today's episode, Stephen and our host, Ray Rike will cover the following topics:

• The vision behind founding Collective[I] and the Economic Foundation Model
• Why buyer’s historic behavior is more important than a selling process
• The challenges and benefits of a “give to get” collective for go-to-market data sharing

If you have ever used Waze to identify the shortest time from where you are to where you need to go, you understand the value of "collective intelligence". When you start to think about being able to understand which companies are most likely to buy your product and/or to understand why a specific customer buys, and who are the key decision makers you need to engage with, the possibilities that come to mind are limitless!

Stephen shares how a Neural Network (AI) is being applied to Go-to-Market data to help B2B companies materially increase the ROI on their customer acquisition investments.

Stephen shares how his experience founding LinkShare and the concept of affiliate networks is foundational to Collective[I]. Over 10 years ago, Stephen identified that salespeople create a new "roadmap" for every new opportunity. He envisioned building a network where everyone shares their sales process data anonymously so that the collective group can benefit from the collective wisdom generated by the group.

The result was building one large neural network and creating an economic foundation model trained on how buyers buy from real-world processes.

One of the fundamental premises is that companies cannot build their own neural network and thus not build their own foundational model - as they do not have the insights required into how new target companies actually buy.

If you are responsible for leading a B2B Sales team, rely upon a sales team to achieve your financial plan, or are an individual sales professional who would like to know more about how a target customer or existing prospect buys, this conversation is one of the most thought-provoking discussions that we have had on the Metrics that Measure Up podcast.

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