Dave "CAC" Kellogg and Ray "Growth" Rike discuss the top metrics for a Chief Customer Officer to use presenting to the board and to report to the executive team when the CCO has responsibility for: 1) Customer Success; 2) Professional Services and; 3) Customer Support

• Net Revenue Retention
• Gross Revenue Retention
• Customer Health Score
• Billable PS Revenue
• Billable Utilization
• Gross Margin
• Cases per Agent
• Post Case Closed CSAT
• Deflections

Those these are the high level metrics for a CCO, each function will have more detailed lagging and leading indicator metrics that Dave and Ray will cover in subsequent episodes of SaaS Talk with the Metrics Brothers.

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What are the top metrics for a Chief Marketing Officer to use when presenting to the board of directors and in a Quarterly Business Review. Dave "CAC" Kellogg and Ray "Growth" Rike discuss the below top 7 CMO metrics during this episode:

• Marketing Sourced Pipeline Generation
• Marketing Sourced Pipeline Conversion
• Day 1 Pipeline Coverage
• Demand Generation Cost per Opportunity
• Brand Awareness
• Website Visitors
• Sales CSAT

Dave recently wrote a detailed blog article on this topic which can be read by clicking here.

"CAC" is a huge fan of the phrase "Marketing creates pipeline that closes" and dives into the detail of the top Marketing metrics during this episode.

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Top 5 Metrics for Chief Revenue Officers that own the entire customer journey, including Customer Acquisition, Customer Retention and Customer Expansion process.

Dave "CAC" Kellogg and Ray "Growth" Rike discuss 5 of the top metrics for a Chief Revenue Officer in 2024 including:

1. ARR "Actual vs Plan" - the keep your job metric
2. Pipeline Performance - Coverage & Efficiency
3. Net Revenue Retention
4. CAC Ratio
5. CLTV:CAC Ratio

Key context to this episode, is it discusses 5 of the top metrics for a true Chief Revenue Officer, not a SVP/VP Sales with the CRO title. CROs are responsible for revenue growth across every stage of the customer lifecycle, and is a financial steward of the company focused on increasing enterprise value by leading the strategy and the execution of all processes that result in efficient, profitable revenue growth.

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Rule of 40 has been the standard metric B2B SaaS investors and operators have used to measure balanced growth...will the Rule of 40 be surpassed by the new Rule of X recently created by Bessemer Ventures? Join Dave "CAC" Kellogg and Ray "Growth" Rike as they discuss the details about the Rule of X including:

• Foundational calculation formula for the Rule of X
• How to find the "Growth Weighted" M in the formula
• What is a good "Rule of X" score

The Rule of 40 has been around for over a decade - but it was missing one key variable....which is more important growth or profitability? Beyond that, if one variable is more important what are the respective weights of Growth and Profit?

CAC and Growth have a little fun while diving deep into the details behind the Rule of X and the Rule of 40.

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How the Enterprise Value of a SaaS company impacted by growth rate is the topic of today's conversation with Dave "CAC" Kellogg and Ray "Growth" Rike - the result is a new metric named "ERG" - the Enterprise Value to Revenue to Growth Rate Multiple.

During this episode, Dave and Ray highlight several leading public, B2B Cloud companies and how their Enterprise Value to Revenue multiples are impacted when the growth rate is factored in.

With a public Cloud/SaaS company median growth rate of 21%, the median Enterprise Value to Revenue multiple of 6.1x and a median ERG of .31 - what does that mean when the ERG is calculated for public Cloud companies such as Workday, Twilio, Domo, ZoomInfo and Hubspot?

If you are interested in how growth rate impacts enterprise value in a B2B Cloud company - this episode is a great listen!

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Dave "CAC" Kellogg and Ray "Growth" Rike go out on a limb and share their predictions on the Top 5 SaaS Metrics in 2024 - some are old friends and two are brand new for 2024!!!

2023 was a year focused on efficient growth, extending cash runways and making progress towards profitability. Simultaneously, certain metrics became more important in correlation to enterprise value to revenue multiples - including the re-emergence of the Rule of 40 being critical to company valuations.

Which metrics are Dave and Ray predicting as the Top Five for 2024:

• Rule of X - a growth-weighted Rule of 40
• ARR/FTE - the ultimate overall productivity metric for B2B SaaS companies
• GRR & NRR - Why the "&" is so important to measuring retention & expansion
• CAC Payback Period and CAC Ratio - The GTM efficiency metric combination
• ERG - a growth-weighted enterprise value to revenue growth ratio

The Metrics Brothers focused on the "SaaS Metrics" predictions for this episode - but if you would like to see the more holistic 2024 predictions - take a look at Dave's @kellblog post at: https://kellblog.com/2024/01/02/kellblog-predictions-for-2024/

Happy New Year to all and here is to an improving B2B SaaS environment with a balanced approach to growth and profitability!!!

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Dave "CAC" Kellogg and Ray "Growth" Rike discuss the long standing, industry standard SaaS Metrics Benchmark report from KeyBanc Capital Markets, which was released in December, 2023.

If you are a long-time SaaS veteran or new to the SaaS industry - this report has been the de facto SaaS Metrics benchmarking report for 14 years. This year's report includes a total population of 106 companies, and often comes up short in comparison to previous year's report. The small population makes segmenting the benchmarks by company size or ACV much very difficult - and benchmarks that are relevant to company size and ACV is critical in making them useful.

We encourage our listeners to download the report and follow along at CAC and Growth break it, and several of the metrics that are included... which are primarily for 2022, and some are based upon 2023 estimates.

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Dave "CAC" Kellogg and Ray "Growth" Rike continue their break down the recent Battery Ventures - State of the OpenCloud 2023 Report which includes a historic view of performance benchmarks and some predictions on how AI will impact performance metrics in the future.

During Part 2 of this episode the co-hosts cover several metrics and SaaS industry trends including:

• Growth Rates
• Technology Buyer Sentiment heading into 2024
• The impact of balanced growth + profitability
• Business model and pricing evolution
• Stock Option Re-pricing
• The human capital impact of AI...beware Sales and Marketing

The entire report is available by clicking here.

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Dave "CAC" Kellogg and Ray "Growth" Rike break down the recent Battery Ventures - State of the OpenCloud 2023 Report which includes a historic view of performance benchmarks and some predictions on how AI will impact performance metrics in the future.

During this episode the co-hosts cover several metrics and SaaS industry trends including:

• Growth Rates
• Technology Buyer Sentiment heading into 2024
• The impact of balanced growth + profitability
• Business model and pricing evolution
• Stock Option Re-pricing
• The human capital impact of AI...beware Sales and Marketing

The entire report is available by clicking here.

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Dave "CAC" Kellogg and Ray "Growth" Rike analyze the recently published OpenView Partners 2023 Benchmark Report which was conducted in partnership with Paddle. Interesting insights into the declining growth rates and increased customer churn trends.

Key metrics and the associated benchmarks segmented by company ARR analyzed include:

• Growth Rate
• Rule of 40
• Net Revenue Retention
• Gross Revenue Retention
• CAC Payback Period
• Headcount
• Revenue/FTE

The OpenView 2023 Benchmark Report is at: openviewpartners.com/2023-saas-benchmarks-report/

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