Revenue Efficiency in B2B: Metrics That Drive Growth
Revenue efficiency is the ratio of net new annual recurring revenue to the sales and marketing spend that produced it. In plain terms, it tells you how much growth you're buying for every pound you invest. For UK B2B founders, it has quietly become the single most important metric on the investor scorecard, overtaking raw growth rate after the 2022 reset. A healthy SaaS business now sits at 0.8 to 1.0 on that ratio, and the gap between that and the median is where valuations are won or lost. This article breaks down how to measure revenue efficiency, the benchmarks that matter in 2024, and the practical levers UK scale-ups use to lift it. Our free Revenue Efficiency Calculator is referenced throughout if you want to benchmark your own numbers as you read.