SaaS Metrics School
379 episodes — Page 4 of 8
Can You Pass This Real Go-to-market SaaS Metrics Quiz
In episode #229, I’m testing your knowledge of GTM SaaS metrics. I help a lot of SaaS companies and see a lot of situations. What do you think of this GTM profile? - ACV = $4K - Cost of ARR = $2.00 - CAC Payback = 20 months - What metric would also be helpful? - Take metrics into your operations Level up your SaaS metrics knowledge here!
Should I Invoice Out of My CRM or Accounting Software
In episode #228, I address invoicing. What software should I use? Based on a recent LinkedIn post (below), this is a hotly debated topic. The landscape might be shifting. - Should I invoice out of my CRM? - Should I invoice out of my Accounting software? - Should I use a point solution? - Who owns billings and collections? LinkedIn Post: the next hot space in CFO tech...Billing LinkedInPost: where should I invoice?
Your Sales Team Does NOT Own Billing and Collections
In episode #227, I address billings and collections. An experienced SaaS colleague asked this question, and here are my strong thoughts on it. - Does your CRO own collections? - Does your CFO own collections? - This is how it should work If you need help with collections, check out my app at TryExtend.com.
What is a Good Revenue Churn Rate
In episode 226, I address churn and retention rates. What is good? What is bad? and how do we source these benchmarks? - What is a good customer retention or churn rate? - What metric do we use? - How to correctly benchmark your churn Grab your customer benchmarks at: Benchmarkit.ai Join my SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
What is a Good Customer Churn Rate
In episode #225, I address churn and retention rates. What is good? What is bad? And how we source these benchmarks. - What is a good customer churn rate? - How to correctly benchmark your churn Grab your customer benchmarks at: Benchmarkit.ai Join my SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
Don’t Exit Without Preparing These 4 Key Finance Data Sources
In episode #224, I address a common problem in SaaS companies. Finance data. I see this over and over. You not only need this data to properly scale your business, but you also need for a fundraise or exit. - HRIS - Financial - Bookings - Customer / revenue To learn more: https://www.thesaascfo.com/the-4-key-saas-finance-data-sources/ Join my September cohort for more support: https://www.thesaasacademy.com/the-saas-metrics-foundation-live-cohort-new
The Canary in the Coal Mine Subscription Metric
In episode #223, I address a metric that I rarely see tracked. It’s called Renewal Rate. If you sell annual or multi-year customer contracts, this is a must-have metric. - What is renewal rate? - Renewal rate inputs - Why it’s leading edge? Join Ben's SaaS community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
What Churn Metric Do I Use in LTV
In episode #222, I address churn, retention, and LTV. Like any metric, LTV can be made very subjective if we use the wrong inputs. We must the correct churn rate and gross margin percentage. - LTV components - What churn do I use? - What is I have a SaaS+ model? Join my SaaS community here for events, templates, and training.
Should I Code Wages and Benefits to COGS
In episode #221, I address expense coding for tradeshows. This is a great question from a SaaS Metrics School podcast listener. - What departments are in COGS? - COGS vs. OpEx - Fully-burdened cost centers
Where Do I Code Tradeshow Expenses
In episode #220, I address expense coding for tradeshows. This is a great question from a SaaS Metrics School podcast listener. - Scenario: we attend tradeshows for lead gen. Multiple staff attend the tradeshow. - Where do we code tradeshow expenses? - Where do we code staff expenses who attend the tradeshow? - Where do we code everyone else?
9 Legal Strategies for a $100M Exit – Tactics 7 to 9
In episode #219, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - Have strong vendor contracts - Identify potential legal risks - Learn how to navigate complex deals Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
9 Legal Strategies for a $100M Exit – Tactics 4 to 6
In episode #218, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - Manage your IP - Keep your corporate governance clean - Have strong customer contracts Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
9 Legal Strategies for a $100M Exit – Tactics 1 to 3
In episode #217, I address preparing for an exit. You must prepare ahead of time for an exit. I hosted guest expert Omeed Tabiei, an attorney for SaaS companies. His tactics were golden. They must be followed so you don’t have a failed exit. - The right deal structure - Manage your equity - Manage your employees Grab the replay and slides here: https://www.thesaasacademy.com/pl/2148384654 Omeed's LinkedIn: https://www.thesaasacademy.com/pl/2148384654 Omeed's website: https://www.optimistlegal.com/
Ignore Your Accounting Pay the Price Later
In episode #216, I address poor accounting data. This is SO common in early-stage SaaS, even later stage. But it can easily be avoided. - The pillars of your accounting foundation - Revenue categories - Department structure - COGS vs. OpEx - Non-operating - Client example Sample chart of accounts: https://www.thesaascfo.com/sample-chart-of-accounts-saas/
I’m Struggling with Your Bookings Data
In episode #215, I address bookings data from our CRM. This is one of the four key finance data sources. And one that we get wrong. - What is a booking? - How do we use bookings data? - What are the key fields that I need to capture? - Tips Grab my bookings template here: https://www.thesaascfo.com/the-saas-bookings-report/
What to Do When Your Accounts Receivable and Aging Are Out of Control
In episode #214, I address cash flow. Plain and simple. Don’t collect on your open invoices and you’ll soon be out of business. - What is AR? - What is AR aging? - My plan of attack to collect on invoices Check out TryExtend.com to automate your cash collections. Better yet, set up a quick demo call with here: https://book.thesaascfo.com/tryextend if you use QBO or Xero.
How Late is Late for a Late Payment?
In episode #213, I address a student question from my SaaS metrics community. As a CFO, this question is near and dear to my finance heart. - What is considered late? - Does invoice size amount matter? - My maximum late grace period - Automating your cash collections Put your cash collections on autopilot at TryExtend.com
Not All CARR is Created Equally
In episode #212, I address Contracted Annual Recurring Revenue (CARR). This can get really tricky when everyone is defining ARR differently. And CARR is often used in SaaS valuation discussions. - What is CARR? - SaaS valuations - Not created equally - Attach retention to CARR CARR blog post: https://www.thesaascfo.com/committed-monthly-recurring-revenue/
Your Accounting Team Needs a Close Calendar Checklist
In episode #211, I address your accounting foundation. Like it or not, accounting data is so important and feeds the SaaS finance process. - SaaS accounting foundation - SaaSify your chart of accounts - Clean close process Close checklist: https://www.thesaascfo.com/downloads/monthly-close-calendar/
Parent Child Relationships Can Cause a Big Metrics Mess
In episode #210, I address the parent-child relationship—and I’m not talking about the relationship with your teenager. If not done right, it can wreak havoc on your financial analysis and metrics. - What is the parent-child relationship? - Tracking retention at each level - Create a cross-walk
Founder / Investor Fit is Critical for Fundraising Success
In episode #209, I address fundraising tips and tricks. This tip is one that is always mentioned when I interview SaaS founders about their fundraising experience. - What is founder / investor fit - Vet your investors - Be courteous
Is LTV to CAC Dead as a Metric?
In episode #208, I address social media posts that attack LTV to CAC. Don’t believe the blanket statements that you read about SaaS metrics. - What is LTV to CAC? - When does Ben use LTV to CAC? CAC Class: https://www.thesaasacademy.com/pl/2148384654
How Do We Track Retention When We Offer Multi-year Contracts
In episode #207, I address retention in a multi-year contract environment. Should we use only classic retention analysis? - The 3 retention metrics - When to apply the renewal rate? - What is renewal rate?
I Rarely See This Metric Tracked in SaaS Companies
In episode #206, I address a non-financial metric that I love. That is NPS or CSAT. But you see a lot of folks who would rather pass on NPS. - Any feedback is good feedback - NPS - Try my NPS tool Join my SaaS community: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout
How to Tackle Your Retention Problem
In episode #205, I address the must-have retention metrics and how to zero in on retention problems. - The 3 retention metrics - Where’s my retention problem? - Cohort vs. aggregate retention Grab my retention templates: https://www.thesaasacademy.com/pl/2148292708
Do Your VC’s Not Care Anymore?
In episode #204, I address a post by SaaStr about VC’s checking out on current investments. What now? - Set your own financial roadmap - Forecasting - 5 Pillar SaaS Metrics Framework Grab my framework here: https://www.thesaasacademy.com/pl/2148255133
Improving Your DSO and Cash Flow
In episode #203, I address invoicing, cash collections, and cash flow. Cash flow starts with timely and accurate invoicing. - Timely and accurate invoicing - Days Sales Outstanding - Cash collections Grab my DSO guide here: https://www.thesaascfo.com/downloads/dso-guide/ Need help with cash collections automation, book time with me here: https://book.thesaascfo.com/tryextend
Do I Really Have to Code All Expenses to a Department?
In episode #202, I address a reader question about coding expenses. They attended my CAC webinar and had a great question about how far you go with expense coding. - Coding expenses to the department level - Allocating invoices to multiple departments Catch my CAC training replay and templates: https://www.thesaasacademy.com/pl/2148384654 Some great SaaS events coming up: https://www.thesaascfo.com/saas-events/
How to Segment Your CAC
In episode #201, I address the foundation of CAC and segmentation. It takes a lot of good expense detail to get fancy with our CAC calculations. - New vs. existing allocation - CAC segmentation CAC webinar on May 29th: https://www.thesaasacademy.com/pl/2148321309
The Ultimate SaaS Metrics Checklist for Your Business
Episode 200 – The Ultimate SaaS Metrics Checklist for Your Business In episode #200, it’s fitting for episode 200 that I share my 5 Pillar SaaS Metrics Framework. It acs as your guide and roadmap to calculating the correct SaaS metrics for the right stage of your business. - Pillar 1 – growth - Pillar 2 – retention - Pillar 3 – margins - Pillar 4 – financial profile - Pillar 5 - efficiency Grab my framework here: https://www.thesaasacademy.com/pl/2148255133 Join my SaaS metrics training here: https://www.thesaasacademy.com/SMF-live-just-the-facts
My ARR when Switching from Long-term Contracts to Consumption Model
In episode #199, I address the tricky question of what is ARR. There are many revenue streams in SaaS and we have to be careful how add up our ARR. - SaaS revenue streams - What is ARR? - Subscription to consumption SaaS metrics course begins July 9th: https://www.thesaasacademy.com/SMF-live-just-the-facts
You Are Less Than 2M ARR and Want to Exit
In episode #198, I address what you need if you are early-stage and want to exit. I just gave a coaching call on this to someone prepping a smaller SaaS company for sale. - Accounting - SaaS P&L - MRR schedule SaaS metrics course launches July 9th SaaS CFO templates course
Your MRR Schedule is Worth its Weight in Gold
Episode 197 – Your MRR Schedule is Worth its Weight in Gold In episode #197, I address due diligence and your MRR schedule. Your MRR schedule will ALWAYS be requested in due diligence. - What is an MRR schedule? - How do you create an MRR schedule? - MRR schedules are gold - SaaS metrics course SaaS Metrics course launches July 9th SaaS CFO templates course
The Foundation of CAC Part 4
In episode #196, I address the foundation of CAC in this four-part series. Today, let’s talk PLG and SLG. And segmenting your CAC. - SLG and PLG impact on CAC - Don’t forget to segment your CAC The foundation of CAC blog post.
The Foundation of CAC Part 3
In episode #195, I address the foundation of CAC in this four-part series. Today, about the metrics that use CAC as an input. And what’s your prize? - CAC feeds these metrics - What’s your prize? Very important to define Learn more about CAC here!
The Foundation of CAC Part 2
In episode #194, I address the foundation of CAC in this four-part series. Today, let’s talk data sources. Where do we source CAC data? - SaaS P&L - Bookings data or your MRR schedule Foundation of CAC blog post.
The Foundation of CAC Part 1
In episode #193, I address the foundation of CAC in this four-part series. Today, let’s define CAC. It’s not as obvious as it seems. - Begins with your general ledger and your SaaS P&L - Gross CAC, customer acquisition cost Blog post on CAC: https://www.thesaascfo.com/the-foundation-of-customer-acquisition-costs-cac/
What SaaS Metrics Are Relevant When Passing $10M ARR?
In episode #192, I address the relevant SaaS metrics when hitting the big $10M ARR milestone. If you are a founder who is still far away from 10M, it’s good to understand what you’ll need at that point. - Do SaaS metrics matter? - What financial metrics do I need? - The 4 key finance data sources Grab my 5 Pillar Framework here: https://www.thesaasacademy.com/pl/2148255133
What Metrics and Data Do Acquirors Want to See ASAP?
In episode #191, I address the data that is worth its weight in gold. You will always be asked for this data when buyers are evaluating your SaaS business. - The golden data - Where do you source this data? Grab my resource to create your MRR schedule here: https://www.thesaasacademy.com/pl/2148292708
Do I Really Need to Use SaaS Metrics Benchmarks?
In episode #190, I address SaaS benchmarks and metrics. Benchmarks act as important guideposts for our business. - Do I really need benchmarks? - What benchmarks does Ben use? - Important for due diligence My 5 Pillar Framework: https://www.thesaasacademy.com/pl/2148255133
How Do I Count Reactivation MRR in My Metrics
In episode #189, I address reactivation MRR and counts. This is a common layer of MRR in self-service SaaS (low price point, high customer volume) business. - impact on revenue retention - impact on logo retention Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Calculating CAC When You Have SLG and PLG Motions
In episode #188, I address today’s reality with our go-to-market motion and CAC. You must segment your CAC if you run a PLG and SLG motion. - new vs. existing CAC allocation - SLG vs PLG allocation - what to do with R&D Subscribe to Ben’s short SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Don’t Do This When Allocating Your CAC Expense
In episode #187, I address an important concept when trying to allocate CAC expenses between new and existing business. This came up again on a coaching call so it’s time to address it. - how not to allocate - how to properly allocate CAC - another good way to allocate CAC My 5 Pillar SaaS Metrics Framework: https://www.thesaasacademy.com/pl/2148255133
Can CAC Be Calculated Per Product Line?
In episode #186, I address an important nuance in calculating your S&M efficiency metrics. CAC by segment. This is often harder than it appears. - Isolating bookings and revenue - Isolating expenses by product line - Expense structure Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Should We Include Customer Success Cost in Our CAC?
In episode #185, I address an important nuance in calculating your S&M efficiency metrics. Where does customer success belong? - What role does Customer Success play? - Should CS be in both COGS and OpEx? Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Sales Cycle Impact on S&M Efficiency Metrics
In episode #184, I address an important nuance in calculating your S&M efficiency metrics. - How do you measure your sales cycle? - Impact on S&M metrics measurement Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Bookings Data is Finance Data Source 1
In episode #183, I address the four key sources of SaaS finance data. This data feeds our forecast, SaaS metrics, financial analysis, Board reporting, and more. We must implement a clean monthly data process. - What is a booking? - Data sources for bookings - Feeds our S&M metrics Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Contracted MRR vs P&L MRR
In episode #182, I address the nuances of MRR. We could be talking about an accounting number, a CRM number, and a number from who knows where. - What is MRR? - Accounting MRR - Contracted MRR Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Please Code Your Expenses to the Department Level
In episode #181, I address an all too frequent accounting problem. Department coding. Save yourself headaches down the road by coding expenses to the department level. - Pure-play SaaS departments - COGS vs. OpEx - Why this matters Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray
Founders You Must Be Profitable on Your Services Revenue
In episode #180, I address professional services revenue. PS revenue required to set up, configure, onboard, and train your customers. And essential department when selling mid-market and enterprise software. - What is professional services? - What are standard margins on services revenue? - The battle between Sales and PS - You must make margin! Subscribe to Ben’s SaaS metrics newsletter: https://saasmetricsschool.beehiiv.com/subscribe Subscribe to Ben’s SaaS monthly newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page SaaS Metrics courses here: https://www.thesaasacademy.com/ Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray