The SaaS Academy’s Post

🚀 Foundation of CAC: Part 3 – Defining Your "Prize" for Accurate SaaS Metrics In today’s SaaS Metrics School episode, I’m diving into a critical question: What are you really chasing with your sales efforts? 🌟 Your Customer Acquisition Cost (CAC) is foundational to measuring sales and marketing efficiency. But if your metrics are based on the wrong unit—whether it’s a brand, account, store, or user—it can completely throw off your calculations. For example: ✅ Starbucks: Do you calculate CAC on one logo or 38,000 stores? ✅ Healthcare: Is it based on a physician group or individual doctors and beds? Getting CAC right ensures accurate forecasting and reliable metrics like: 📊 CAC Payback Period 📊 LTV to CAC Ratio 📊 Cost of ARR (new, blended, and expansion) Watch now to learn how to align your CAC metrics with your business strategy and avoid costly mistakes. 🎥👇 📺 Watch the full episode here: https://lnkd.in/ga6hcg6H #SaaS #CustomerAcquisitionCost #CACMetrics #SaaSMetrics #SalesEfficiency #RevenueForecasting #FinancialModeling #SaaSFinance #GrowthStrategy #SaaSFoundations #SalesAndMarketing #CACPayback #LTVtoCAC #ARRMetrics #SaaSMetricsSchool #SaaSProfitability #BenMurray #SaaSCFO #SaaSGrowth #EfficiencyMetrics #StartupFinance

🚀 How do you calculate retention with consumption-based revenue? This is a question I recently got from a student, and it’s a crucial one for SaaS businesses relying on variable revenue models, like consumption or transaction-based income. Unlike traditional MRR or ARR, where growth trends are more straightforward, consumption-based revenue can fluctuate—making retention analysis more complex. So, how can we accurately track retention for these revenue streams? 🔑 Here are some key approaches I use: 1️⃣ Run an aggregate revenue retention schedule to analyze customer, gross, and net retention. 2️⃣ Look for trends in ARPA (average revenue per account) or seasonal fluctuations in your variable revenue streams. 3️⃣ Use cohort analysis to track revenue from specific customer groups over long periods. 4️⃣ Explore Month 13 retention to see how customers behave after their first year. 5️⃣ Adjust your time period for measurement—sometimes year-over-year is needed to see the bigger picture. Whether consumption revenue is a small part of your revenue mix or a key driver, understanding retention is essential for long-term growth. 💡 Have you faced challenges with retention in a variable revenue model? Let me know in the comments! Episode 179 is now on YouTube: https://lnkd.in/g2PRbW_r #SaaS #SaaSCFO #Retention #ConsumptionRevenue #SaaSmetrics #CohortAnalysis #NetRevenueRetention #GrossRevenueRetention #ARR #MRR #SaaSFinance #VariableRevenue #CustomerRetention #RevenueTrends #FinancialAnalysis #CFO #SaaSBusiness #SaaSExperts #SubscriptionEconomy #PricingModels #SaaSGrowth

🚀 How do you calculate retention with consumption-based revenue? This is a question I recently got from a student, and it’s a crucial one for SaaS businesses relying on variable revenue models, like consumption or transaction-based income. Unlike traditional MRR or ARR, where growth trends are more straightforward, consumption-based revenue can fluctuate—making retention analysis more complex. So, how can we accurately track retention for these revenue streams? 🔑 Here are some key approaches I use: 1️⃣ Run an aggregate revenue retention schedule to analyze customer, gross, and net retention. 2️⃣ Look for trends in ARPA (average revenue per account) or seasonal fluctuations in your variable revenue streams. 3️⃣ Use cohort analysis to track revenue from specific customer groups over long periods. 4️⃣ Explore Month 13 retention to see how customers behave after their first year. 5️⃣ Adjust your time period for measurement—sometimes year-over-year is needed to see the bigger picture. Whether consumption revenue is a small part of your revenue mix or a key driver, understanding retention is essential for long-term growth. 💡 Have you faced challenges with retention in a variable revenue model? Let me know in the comments! Episode 179 is now on YouTube: https://lnkd.in/g2PRbW_r #SaaS #SaaSCFO #Retention #ConsumptionRevenue #SaaSmetrics #CohortAnalysis #NetRevenueRetention #GrossRevenueRetention #ARR #MRR #SaaSFinance #VariableRevenue #CustomerRetention #RevenueTrends #FinancialAnalysis #CFO #SaaSBusiness #SaaSExperts #SubscriptionEconomy #PricingModels #SaaSGrowth

Unlock the power of cohort analysis for your SaaS business! 🛠️ Understanding customer retention and revenue streams is crucial for growth and success. In this latest edition of SaaS Metrics School, we dive deep into what cohort analysis is, how to perform it, and when it’s most valuable for different types of SaaS companies. Whether you’re dealing with high ACV or low ACV customers, basic or advanced cohort analysis can provide critical insights to drive your business forward. Discover how to segment customers by acquisition date, analyze retention rates, evaluate marketing channel performance, and identify breakpoints to reduce churn. Watch the full video now and transform your SaaS strategy! 🎥 https://lnkd.in/gDsugDmq #SaaS #CohortAnalysis #CustomerRetention #RevenueStreams #CustomerAcquisition #RetentionRates #SaaSBusiness #MarketingChannels #CustomerSuccess #BusinessGrowth #ChurnReduction #ACV #SaaSStrategy #CustomerInsights #RetentionAnalysis #MarketingPerformance #CustomerSegmentation #SaaSAnalytics #GrowthStrategy #RevenueRetention

🌟 Whether your SaaS business is generating $1M or $100M in ARR, one thing remains constant—the foundation of Customer Acquisition Cost (CAC). 🧮 In my latest SaaS Metric School session, I dive into why getting your CAC right is critical for scaling efficiently and sustainably. From isolating fully burdened sales and marketing expenses to setting up your SaaS P&L correctly, these fundamentals don’t change with growth. If your CAC is off, so are your key metrics like CAC payback and LTV to CAC ratio. This can lead to poor decision-making and missed opportunities. But when you master these fundamentals, you set your SaaS company up for long-term success. 🚀 How are you managing your CAC? Let's discuss how to optimize this crucial metric for your business. Episode 148 is now on YouTube: https://lnkd.in/g4Ru8QBd #SaaS #SaaSMetrics #CustomerAcquisition #CAC #ARR #BusinessGrowth #StartupGrowth #SaaSFinance #SalesEfficiency #MarketingEfficiency #LTV #Forecasting #DataDriven #SaaSStrategy #FinancialManagement #GrowthStrategy #SaaSSuccess #SaaSLeaders #ScaleUp #BenMurray

🌟 Whether your SaaS business is generating $1M or $100M in ARR, one thing remains constant—the foundation of Customer Acquisition Cost (CAC). 🧮 In my latest SaaS Metric School session, I dive into why getting your CAC right is critical for scaling efficiently and sustainably. From isolating fully burdened sales and marketing expenses to setting up your SaaS P&L correctly, these fundamentals don’t change with growth. If your CAC is off, so are your key metrics like CAC payback and LTV to CAC ratio. This can lead to poor decision-making and missed opportunities. But when you master these fundamentals, you set your SaaS company up for long-term success. 🚀 How are you managing your CAC? Let's discuss how to optimize this crucial metric for your business. Episode 148 is now on YouTube: https://lnkd.in/g4Ru8QBd #SaaS #SaaSMetrics #CustomerAcquisition #CAC #ARR #BusinessGrowth #StartupGrowth #SaaSFinance #SalesEfficiency #MarketingEfficiency #LTV #Forecasting #DataDriven #SaaSStrategy #FinancialManagement #GrowthStrategy #SaaSSuccess #SaaSLeaders #ScaleUp #BenMurray

📊 92% 𝐨𝐟 𝐒𝐚𝐚𝐒 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐅𝐚𝐢𝐥: 𝐀𝐫𝐞 𝐘𝐨𝐮 𝐓𝐫𝐚𝐜𝐤𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐢𝐠𝐡𝐭 𝐌𝐞𝐭𝐫𝐢𝐜𝐬? 🚀 Did you know that 92% of SaaS businesses fail because they don’t track the right metrics? 𝐃𝐨𝐧’𝐭 𝐥𝐞𝐭 𝐭𝐡𝐚𝐭 𝐡𝐚𝐩𝐩𝐞𝐧 𝐭𝐨 𝐲𝐨𝐮! In our carousel, we reveal 5 essential SaaS metrics every founder must track to drive growth and profitability. From MRR to Net Promoter Score (NPS), these insights are critical for scaling your business. Want to unlock your business potential? Swipe through and discover how to boost your revenue, reduce churn, and enhance customer lifetime value. 💡 𝐖𝐡𝐢𝐜𝐡 𝐒𝐚𝐚𝐒 𝐦𝐞𝐭𝐫𝐢𝐜 𝐝𝐨 𝐲𝐨𝐮 𝐩𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐳𝐞 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐢𝐧 𝐲𝐨𝐮𝐫 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬, 𝐚𝐧𝐝 𝐰𝐡𝐲? Share your thoughts with us! 💬 👉 Follow MAPL for more insights. #SaaS #BusinessGrowth #CustomerSuccess #Cloudcomputing #BusinessStrategy

Some takeaways from today's "Navigating the Future of SaaS Fundraising with 2024 Benchmarks" webinar with Tim Page, CPA and Blake Koriath from Topo Advisors and High Alpha, respectively. There is so much goodness in the data, but today, let’s focus on the importance of retention as a growth driver. Everyone talks about it, but what can you as a CEO do to improve your retention metrics?' 1. Boost Net Revenue Retention (NRR): Companies with higher NRR are experiencing faster growth. Prioritize customer success initiatives and regularly review pricing and packaging to maximize upsell opportunities. 2. Enhance Gross Revenue Retention: Focus on understanding customer usage patterns and identifying churn risks early. Implement strategies to improve customer satisfaction and retention rates, which directly impact your NRR. 3. Strategic Product Development: Introduce new features and products thoughtfully. Consider how these can be packaged for upsell opportunities rather than simply adding them to existing offerings. 4. Negotiate Renewals Effectively: Ensure your renewal processes include annual price increases or multiyear agreements to capture the value of ongoing product improvements. 5. Adopt a Customer-Centric Approach: Engage with your customers regularly to understand their evolving needs and ensure your product continues to deliver significant value. For more insights, download the full report at https://lnkd.in/eVVSiS9S. Thanks to Tim and Blake for sharing these valuable strategies! 📊 #CustomerRetention #SaaS #GrowthStrategy #InvestorReadiness #NetRevenueRetention

In our recent Best Metrics episode featuring Wade Maleck of CLA (CliftonLarsonAllen) we dive into the crucial topic of Cost of Customer Acquisition (CAC) and the key metrics used to determine it. This segment is packed with essential insights for anyone in the Technology and SaaS industry looking to optimize their financial strategies. From marketing and sales expenses to onboarding costs, understanding CAC can significantly impact your business decisions and growth. But that's not all—our episode also explores the broader role of financial advisors in this dynamic industry. Don't miss out on these valuable insights! Watch the clip on CAC and listen to the full episode for a comprehensive look at the financial landscape in Technology and SaaS. Listen to the full episode here -> https://hubs.ly/Q02L87Wr0 #CAC #CustomerAquisition #TechnologyFinance #SaaS #SaaSfinance #BestMetricsPodcast #PeerviewData

Golden insights for SMB SaaS companies! On July 25th we'll be sharing new data from our soon-to-be-released 2024 SMB survey, and uncover what small businesses REALLY expect from their SaaS providers. #saas #saasmarketing #b2bsales #productmarketing #smb