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SaaSletter - A New SaaS Demand Index
I'm open-sourcing the first edition of a SaaS Demand Index. Plus the usual curated links.
SaaS Demand Index Background
High-level notes on methodology + data:
Driven by high-intent Google search data (i.e. "docusign pricing")
Developed using a leading SEO software suite
n = 340 SaaS companies
Selected for representation (by category, company stages, by customer type) to *approximate* the overall industry
Indexed to a 0.0 - 1.0 scale
Given the typical sales cycle, consider this a PROXY for top-of-the-funnel demand ONLY and NOT indicative of near-term bookings/revenue
This index is a work in progress that NEEDS feedback - my Twitter DM's are open!
SaaS Demand By Customer Size
Despite the macro-environment, high-intent searches remain healthy for SaaS broadly.
Consistent with Gavin Baker's (CIO at Atreides) earlier prediction, our data set shows SMB performing better than enterprise:
SaaS Demand By Product Category + Company
For the most part, the category-level demand data was in-line with consensus (i.e. strong Security, weak E-Commerce).
HR + HCM was surprisingly strong (best performers: Homebase, Paycor, Trainual, BambooHR)
For the last 3 months (July 2022 - Sept 2022), these companies exhibited the most momentum (trend index >0.8):
Other Demand Indicators = ToFu > BoFu
While the top-of-the-funnel demand above looks OK, the current bottom-of-the-funnel environment looks grim.
A few anecdotes + data points:
My note = great insight on the difference between atomic metrics + compound metrics