1. The Most Lucrative Business
Model on the Planet

2. The Colossal Shift in Risk
Customer Risk
Large install, training,
utilization
Provider Risk
Outcome and Engagement

3. The Colossal Shift in Risk
Customer Risk
Large install, training,
utilization
Provider Risk
Outcome and Engagement

4. The Colossal Shift in Risk

5. ….Leads to a Colossal Shift Toward You
Product Outcome

6. Partners Create Outcome and Engagement

7. Mastering the Cash Flow Challenge
David Skok SaaS Metrics 2.0

8. Mastering the Cash Flow Challenge
David Skok SaaS Metrics 2.0

9. Customer Acquisition
Customer Acquisition Cost (CAC)
• Salary and Bonus
• Time
• Support
• Marketing and Lead Generation
• Admin

10. Optimal Payback
CAC Payback < 12 Months

11. Optimal Business
Lifetime Value (LTV)> 3x CAC
1x – Cover Acquisition Costs
2x – Cover admin, support
3x – Allow for reinvestment and profit
4x – Under investing

12. Decrease Cost of Acquisition

13. Optimal Business
LTV > 3x CAC

14. Lifetime Value
• Lengthen Time
• Increase Spend

15. Customer Life After Contract Term
0 months 30 months 60 months

16. Lengthen Time
• Great Installs
– Great Design
– Project Management
• Retention plan

17. Lengthen Time
• Engagement
– Relationship – Time Invested
– Predictive Advisement – know there’s
a problem before your customer

18. Increase Spend
• Trusted Advisor
• Upselling and cross selling
• Billing

19. Recap
LTV > 3x CAC
Lower Cost of Acquisition
• Engineering
• Project Management
• SME Program
Increase Customer Life
• Time Expended
• Relationship
• Retention Plan
Increase Customer Spend
• Monitoring
• Upsell/Cross Sell
• Billing