The potential impact to LTV and associated cost to produce that impact means that certain types of Net Dollar Retention are more valuable than others.
Not all Net Dollar Retention is created equal
Avoiding the SaaS no-man’s-land ACV dead zone
SaaS no man's land exists where the combination of ACV, OTE, and close rate result in impractical and unsustainable AE activity levels.
Business critical vs. time to value
Your SaaS product's value proposition determines your available time window to get your customers to value. Solving the value gap within this constraint is critical to onboarding success.
What should your LTV:CAC ratio be?
Determine your SaaS co's minimum LTV:CAC ratio needed for profitability by reviewing your OpEx composition. Hint: 3x doesn't always mark the spot.
How ASC 606 can inflate SaaS net retention and revenue growth
ASC 606, the latest revenue recognition standard, is now in effect for both public and private companies. Whereas in the past different industries followed different rules for revenue recognition, a promised benefit of ASC 606 is that all industries are now governed by one comprehensive set of guidance. Unfortunately, ASC 606 (like its 605 predecessor)… Continue reading How ASC 606 can inflate SaaS net retention and revenue growth
Determining LTV:CAC in the age of land & expand
Exec summary B2B SaaS companies are increasingly deploying land & expand distribution strategies. While land & expand works well for customer acquisition, it can create headache for one of SaaS’s favorite metrics. The original LTV:CAC formula doesn’t hold up for companies with land & expand motions. And the alternative method suggested of using a discounted… Continue reading Determining LTV:CAC in the age of land & expand
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