Sell-through, or sell-through rate (STR), in the SaaS industry measures the percentage of customers who convert into paying customers after the sales process.

Typically measured within a specific time period, a high sell-through rate is a testament to a company’s product, targeted marketing campaigns and sales strategies. It shows not only how well a product resonates with the audience, but also how well a sales team can convert prospects into loyal customers.

Sell-through rate can also be used as a metric to tighten up and optimize a company’s sales funnel. It can be used to measure the effectiveness of lead generation, demos and closing tactics and highlight which areas need improvement. It also offers insights into the alignment between sales and marketing teams, and the value propositions used to sell the solution.

By closely monitoring STR, companies can gain insights into their sales performance, identify bottlenecks in the sales funnel, refine their messaging, and ultimately increase revenue.