B2B SaaS Benchmark reports are popping up like mushrooms - but how do you know if the benchmark report is good, contains valuable insights and how to use the benchmarks to inform your own objectives and SaaS metrics goals? Dave "CAC" Kellogg and Ray "Growth" Rike take on a topic that is near and dear to their hearts and discuss several key factors that are a tell for a good benchmark report including:Top things to consider when reading a benchmark reportAttributes of a good benchmark reportAttributes of a "not so good" benchmark reportBenchmark utilization best practicesGood Benchmark reports to reviewIf you read benchmark reports and use them in helping to establish goals and objectives in your B2B SaaS company - this episode is a must listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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22:36
Ideal Customer Profile (ICP) and Related Metrics
Ideal Customer Profile (ICP) is a term commonly used across the SaaS industry - but what does it really mean, how can a company effectively build a customer acquisition strategy around it and what METRICS can be used to determine a company's ICP and then measure if it really is the best target customer segment?During this week's episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss the following ICP elements to understand, execute and measure the ROI on the "Ideal Customer Profile":What variables are used to determine the ICPHow to measure the relevant fit of a prospect to the ICPHow to measure if the identified "ICP" is the best target customer segment(s)What metrics can be added to the traditional ICP criteria to enhance the targeting strategyAs always - CAC and Growth introduce a new pairing and an attempt at humor throughout the episode 😱See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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22:58
Net Customer Base Expansion
Net Customer Base Expansion = (Expansion ARR - Churned ARR) which helps SaaS companies to understand how the existing customer base is impacting ARR growth excluding the impact of new logo customer ARR. Why not just use Net Revenue Retention? CAC and Growth dive deep into this SaaS metric including:Calculation formula for Net Customer Base Expansion (NCBE)How is NCBE different from Net Revenue Retention (NRR)What is CAC's definition of lazy NRRCohort vs Segment Calculations - what is the differenceWhat is a good Net Customer Base Expansion RateWhen and where does the Net Customer Base Expansion provide the most valueIf you are responsible for impacting how ARR grows at existing customers in a B2B SaaS company - this episode may provides some new insights and maybe a new metric to add to your SaaS Metrics glossary!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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23:26
Pricing and Billing Trends & Benchmarks
B2B SaaS Pricing models have evolved over the past few years with 67% of SaaS companies now saying they have introduced at least one element of Usage-Based Pricing. Though this benchmark does not tell the whole story of pricing, as the primary pricing model is still based upon a subscription fee per user or a subscription fee per user + a Usage-Based or Value-Based pricing variable.During this episode, CAC and Growth cover a wide range of current pricing trends and benchmarks including:Subscription vs Usage vs Value vs Hybrid pricing model adoptionAdoption of AI and the associated pricing strategiesImpact on Growth Rates based upon pricing model usedUtilization of "Usage CAPS" and how they are chargedTreatment of Usage-Based Revenue when calculating ARRIf you are a student of the SaaS industry, and/or are evaluating if your current pricing model is optimized for your customers and your company's financial performance - this episode is chalked full of unique insights and thought-provoking commentary from Dave "CAC" Kellogg and Ray "Growth" RikeSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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25:39
Sales/Marketing Expense Ratio
Common practice is to measure Sales and Marketing expenses as a percentage of revenue, which in the SaaS industry ranges between 20% - 60% based upon stage, growth and efficiency. CAC and Growth discuss an alternative metric which measures the ratio between Sales expenses and Marketing expenses, known as the Sales/Marketing Expense Ratio.During this episode topics discussed include:Sales and Marketing expense as percentage of revenue benchmarksSales and Marketing expense ratio - value and insightsWhat a 2:1 Sales and Marketing expense ratio meansWhat drives a changing Sales and Marketing expense ratioCustomer Acquisition Cost Efficiency metric - CAC Ratio vs S&M Expense RatioIf you are interested in measuring the allocation of the GTM budget between Sales and Marketing, this is a great episode and listen.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
About SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders
SaaS Talk™ with the Metrics Brothers is hosted by Dave "CAC" Kellogg and Ray "Growth" Rike. SaaS Talk™ provides unique insights, strategies, tactics and the metrics to measure customer acquisition, customer retention and customer expansion success for B2B SaaS companies.Each 20-minute episode will cover a topic critical to profitable revenue growth chalked full of practical advice that can be introduced and applied in most B2B SaaS companies.
Listen to SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders, Habits and Hustle and many other podcasts from around the world with the radio.net app
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