On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss in detail how Usage-Based Pricing (UBP)  impacts the calculation of Customer Acquisition Cost and it's efficiency derivatives including CAC Ratio and CAC Payback Period.

They discuss the three primary different types of Usage-Based Pricing Models including:

• Pure usage-based or consumption-based pricing with no minimum commitments
• Minimum commitment agreement that includes up to #x units and then overage $/unit over the minimum
• Annual Subscription agreement to the platform and a $/unit of usage in addition to the annual subscription

Each of the above models can impact what is consider Annual Recurring Revenue (ARR), Variable Recurrring Revenue (VRR) and/or pure variable revenue - and that will accordingly impact the CAC efficiency metric calculation methodology.

If you love the nuances and details of SaaS Metric and how emerging GTM models impact traditional metrics calculations - this episode is for you!

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The Metrics Brothers discuss how Product-Led Growth (PLG) including the use of Freemiums and/or Free Trials impacts the Customer Acquisition Cost (CAC) calculation. Each PLG model may have different times to value, conversion rates to paid users, different definitions of when a free user becomes a customer which all can impact the CAC calculation formula and the resultant usefulness of the metrics

During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss CAC Payback Period, and provide a little entertainment along the journey to using CAC Payback Period in your SaaS company.

Summary

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The Metrics Brothers discuss the use of Customer Acquisition Cost Payback Period (CAC Payback Period). On the surface CAC Payback Period (CPP) is easy to understand, yet in practice there are many nuances and considerations such as using Gross Margin in the CPP calculation, and if CAC Payback Period is an efficiency, risk or return metric.

During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss CAC Payback Period, and provide a little entertainment along the journey to using CAC Payback Period in your SaaS company.

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The Metrics Brothers discuss advanced topics and uses of Customer Acquisition Cost (CAC) and the CAC Ratio. On the surface CAC and CAC related metrics appear easy to understand, yet in practice there are many nuances, considerations and approaches to optimize the insights provided by CAC.

During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss those advanced topics, and provide a little entertainment along the journey to using CAC in your SaaS company.

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The Metrics Brothers discuss Customer Acquisition Cost (CAC) and the CAC Ratio. The two metrics are closely related, yet are fundamentally two very different SaaS metrics. 

During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss the value of each metric, when to use them and how to calculate each metric.

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How do B2B SaaS leaders measure the financial returns on pipeline generation?

On the surface this question may seem quite simple, but one with that presents several options, especially when considering how a CFO evaluates return on investment.

The Metrics Brothers, Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the nuances and considerations of pipeline returns on this week's episode of SaaS Talk™ with the Metrics Brothers.

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In this episode of SaaS Talk™ with the Metrics Brothers, Dave "CAC" Kellogg and Ray "Growth Rike discuss Pipeline Measurements

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In this episode of SaaS Talk™ with the Metrics Brothers, Dave "CAC" Kellogg and Ray "Growth" Rike, they discuss all things Pipeline Generation

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

SaaS Talk™ dives deep into the world of Software as a Service, discussing the successes and hurdles that C-suite leaders in the SaaS industry encounter.

Co-hosted by Ray Rike, CEO of Rev Ops Squared, and Dave Kellogg, Executive In Residence at Balderton Capital and Principal at Dave Kellogg Consulting, this podcast brings forth insights and perspectives from esteemed SaaS leaders. They share knowledge and experience on a wide array of topics, including SaaS strategy, business model innovation, customer success management, revenue operations, SaaS metrics, infrastructure and security, and data-driven decision-making.

Whether you're a C-suite executive in a SaaS company, an ambitious tech entrepreneur, or simply eager to delve into the SaaS landscape, SaaS Talk has you covered. Our guests reveal their real-world experiences and practical advice, along with their perspectives on emerging trends and technologies in AI, Machine Learning, and Cloud Services.

If you're eager to stay at the forefront in the rapidly evolving world of SaaS, tune in to SaaS Talk. Discover what it takes to excel as a C-suite leader in today's dynamic and ever-changing tech landscape.

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