Driving SaaS Success using Key Metrics

• https://www.youtube.com/watch?v=bCBccKfG9U0

building an unicorn

gross margin

cac

ltv

sales hiring

mktg spend

sdr

output

3 things

growth

prevents competitors to reach market

profitability

cash

how you survive

if cash flow is bad for one customer

unit economics

Can I make more profit from my customers than it costs me to acquire them ?

Cost to Acquire a Customer

CAC < LTV (much bigger)

LTV > 3x CAC

Customer Churn

Dollar Churn

expansion revenue from existing customers > revenue lost from churning customers

if we only have one SaaS product, whawt more can we sell the customer?

multiple versions of your product

more feature

depth of usage (transactions)

more users

how many months to recover cac?

months to recover CAC < 12 months

sales complexity more CAC

use engineering/product to bring CAC down

repeatable and scalable

OTE < 6x Quota (benefits)

On Target Earning - cost of sales person