PLAY PODCASTS
What is the Cost of ARR

What is the Cost of ARR

SaaS Metrics School

July 15, 20232m 5s

Audio is streamed directly from the publisher (app.kajabi.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.

Show Notes

In the first episode, I talk about my favorite SaaS metric, the Cost of ARR (aka SaaS CAC Ratio).

Highlights:

  • You can calculate blended, new, and expansion
  • Requires new and expansion bookings data
  • Need total sales and marketing expense
  • You must allocate S&M for the Cost of ARR New and the Cost of ARR Expansion
  • Sales cycle length is important
  • Easy way to call BS on a bookings forecast with this metric