After reviewing (and discussing) GTM metrics for SaaS companies, I just read an interesting article in the WSJ today about the NBA: “The Rockets Shoot from Outer Space — Houston has changed the NBA by finding a way to take more 3-pointers: take longer 3-pointers.”

NBA has its own Magic Number (like SaaS companies)

We have talked about the Magic Number for SaaS companies, which measures GTM productivity.

The NBA has its own Magic Number — Points per attempted shot. Sounds very similar to new billings per sales and marketing expense.

According to the WSJ, “NBA teams look for shots that yield more than one point on average.

Brittni Donaldson, a data analyst for Stats LLC, analyzed more than 200,000 field-goal attempts from this NBA season using the company’s SportVU technology, which revealed two parts of the court that produced shots yielding more than one point of expected value: between 0 and 6 feet and between 22 and 27 feet.”

GTM Data identifies the Ideal Customer Profile

The Rockets data suggests two types of Ideal Customer Profiles — shooting within 6 feet or from the 3 point line (22 ft to 23 ft 9 inches) to 27 feet. This resembles small, high velocity deals and slow deals (if the deal size is big enough — ie, beyond the 3 point line).

“The Rockets almost led the league in shots from less than two feet — layups and slam dunks — and yet they still took more shots from 25 to 26 feet.”

Build Team based on the GTM strategy

Selecting the right GTM strategy is important but not enough. Companies need to hire the right talent to execute the GTM strategy. It then takes time.

“It took five years for the Rockets to embrace his strategy by signing better shooters to surround Harden and entrusting their offense to perhaps the sport’s most innovative coach. But this was finally the season Houston colonized basketball’s next frontier.” WSJ.

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