Successfully reported this slideshow.

ChurnZero Crash Course Customer Success and SaaS Metrics

0

Share

Upcoming SlideShare
What to Upload to SlideShare
What to Upload to SlideShare
Loading in …3
×
1 of 19
1 of 19

ChurnZero Crash Course Customer Success and SaaS Metrics

0

Share

Download to read offline

Slides from the webinar with You Mon Tsang and Dave Kellogg discussing SaaS metrics including gross dollar retention, net dollar retention, lifetime value, customer acquisition cost, LTV/CAC and various benchmarks for those metrics from the KeyBanc annual SaaS survey.

Slides from the webinar with You Mon Tsang and Dave Kellogg discussing SaaS metrics including gross dollar retention, net dollar retention, lifetime value, customer acquisition cost, LTV/CAC and various benchmarks for those metrics from the KeyBanc annual SaaS survey.

More Related Content

Related Books

Free with a 14 day trial from Scribd

See all

Related Audiobooks

Free with a 14 day trial from Scribd

See all

ChurnZero Crash Course Customer Success and SaaS Metrics

  1. 1. Crash Course /AMA in Customer Success and SaaS Metrics with Dave Kellogg
  2. 2. Common Metrics Benchmarks Discussion andQuestions Agenda
  3. 3. Recurring Revenue (ARR / MRR) Recurring Revenue is the total value of your subscriptions at the end of the period (monthly or annual). • MRR: Monthly Recurring Revenue • ARR: Annual Recurring Revenue
  4. 4. Logo Retention Rate Logo Retention Rate = # of Customers at end of the period # of Customers at start of the period * * Do not include new customers added in this period
  5. 5. Logo Retention Rate v2 Logo Retention Rate = # of Customers at renewed # of Customers up for renewal *
  6. 6. GRR: Gross Revenue Retention GRR = Recurring Revenue at Start of Period - Churn – Contractions Recurring Revenue at Start of Period * * Do not include new customers added in this period
  7. 7. NRR: Net Revenue Retention NRR = Recurring Revenue at Start of Period - Churn – Contractions + Expansion Recurring Revenue at Start of Period * * Do not include new customers added in this period
  8. 8. LTV: (Customer) Lifetime Value LTV = Average Recurring Revenue Per Customer x Customer Lifetime Customer Lifetime = 1 Customer (Logo) Churn Rate
  9. 9. CAC: Customer AcquisitionCost CAC = Total Marketing and Sales Spend in the Previous Period # of New Customers in a Current Period
  10. 10. LTV/CAC Ratio • LTV / CAC tells you how profitable a customer willbe over their lifetime
  11. 11. AUDIENCEPOLL Which metrics does your company report to the board?
  12. 12. Benchmark Metrics
  13. 13. KeyBanc CapitalMarkets • 350 SaaS companies (67% USA), conducted in summer of 2021 • Median Stats • $8.5MM ARR • Organic growth: 31% • Employees (FTEs):75 • Customer count: 280 • Initial Annual Contract Value:USD28,000
  14. 14. DiggingIn… Questions and Discussion
  15. 15. churnzero.net @churnzero linkedin.com/company/churnzero

Editor's Notes

  • Customer metrics
  • Seeding Questions:
    We just spent time talking about CS metrics and there are a bunch! For companies that are brand new to CS, which one or two metric would you have them focus on?
    What do boards and investors care about?
    Some of these metrics are controversial. And I think we ought to warn some of our viewers of its controversy. Which one(s) do you find to be the trickiest to talk about?
    Metrics overload
    I have a mature CS team that I need to keep focused and too many metrics is overload. What should I have them focused on?
    Let’s talk about Net Revenue Retention (NRR). It’s a metric that is getting its day in the sun. Although I think it is a lasting metric that will never going away.
    My first question is what I get asked ALL THE TIME. What is a good NRR? Do you believe the chart I showed earlier for the range?
    How should I think about it given my go-to-market motion? SMB vs mid-market vs enterprise? Tools vs application?
    Let’s look at history.
    I think it’s taken a surprisingly long time for these metrics to gain awareness. Why do you think that is?
    Looking to the future
    What are your thoughts on how these SaaS and CS Metrics evolve?
  • ×