metrics

Driving SaaS Success Using Key Metrics

David Skok, a General Partner at Matrix, provides key insights into how a SAAS company should look for success by using its metrics and smartly managing the most important ones amongst them. SAAS economics is a pretty complicated business, and in this talk for Saastr, David helps break down many vital concepts.

Key Takeaways:

  1. 3 most important outputs from your SAAS business to ensure success: a. Growth b. Profitability c. Cash.
  2. Your LTV should be three times greater than your CAC.
  3. Try and achieve ‘expansion revenue’ by upselling. Have multiple versions on offer or charge on usage eg. Dropbox with storage and Hubspot with leads.
  4. ‘Months to recover CAC’ is one of the most important metrics you need to focus on.
  5. High CAC is fine if you have high LTV, especially with sales processes that are complex.

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