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Leadership
Go-to-market efficiency
How much new ARR a dollar of sales and marketing spend produces — the magic number and its cousins. Whether growth spend earns its keep.
Owned by: VP Sales Ops / CROTest band: VP Sales Ops / CRO
The formula
Magic number = (ΔQuarterly revenue × 4) ÷ Prior quarter S&M spend
In practice
Above 0.75 says spend more; below 0.5 says fix the motion first. Watch the trend more than the level.
The kind of thing the test asks
- The magic number is 0.4 and has fallen for three quarters. The right move is…
More in leadership
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