The Revenue Formula

CAC as a metric is pretty useless for operations. But why is that? And what should you do instead?

That's exactly what we cover in this episode

• Introduction (01:38)
• Very quickly: Defining CAC (Customer Acquisition Cost) (02:41)
• Keep it simple (05:47)
• "CAC as a metric is pretty useless" (07:20)
• CAC and Ratios (10:44)
• Use CAC Payback instead (13:52)
• CAC Payback Benchmarks (22:30)

You can check out the benchmarks mentioned here: https://drive.google.com/file/d/1Kjbt75NEPRjKK63pI_ULJokEL9L2kIf7/view?usp=share_link

It seems so obvious once you've had an aha moment. Whatever you were doing before is just seen in a completely new light.

Unfortunately, we only get so many aha moments -- but fortunately we share 3 of Toni's biggest Aha moments around go-to-market in this episode.

• Quick introduction (00:55)
• 1: More AEs = more revenue? (02:04)
• 2. Sales led motion on a €2-3K ACV? (11:59)
• 3. How does marketing work again? (19:29)
• Episode wrap-up (26:53)

If you want to see the show, check it out on YouTube: https://www.youtube.com/@growblocks/podcasts

Also mentioned, signup for the revenueletter here: https://growblocks.com/revenueletter/

We've run more than 200 quarterly business reviews (QBRs), and we've realized something. They're broken.

Fortunately, we have a solution that improves them by a great deal. We're calling it QBRs 2.0 - listen in here.

You can check out the blogpost here: https://growblocks.com/blog/qbrs-are-broken/

If you're interested in GTM live, sign up here to get access: https://growblocks.com/gtm-live/ 

61% said sales enablement was useless on Bravado (yikes). While the community is very direct, there's a couple of reasons sales enablement doesn't succeed.

We talk about the problems, how to overcome them - and share one or two counter-intuitive approaches you can take.

Key points

• The problems sales enablement can solve (04:08)
• Why sales enablement matters (06:59)
• It should be called revenue enablement, here's what they do (09:12)
• What folks should you hire? (13:00)
• Recruit your top rep to do coaching (15:41)
• Sales enablement to actively participate in sales calls (27:55)
• Wrapup (29:28)

If you want to see the show, check it out on YouTube: https://www.youtube.com/@growblocks/podcasts

Don't just make big bets. Consider rapid experimentation to outpace the competition. We share 5 concrete examples, a process we've followed - all to enable you to conduct rapid experiments.

Formula 1 pitstops took 50 seconds, now it's down to 2. That's the power of continuous improvement, and it can be applied to SaaS.

Sales cycles are extending. Win rates are decreasing. How do you make decisions faster? With a simple framework.

When outbound doesn't work, everyone looks to the tools and the processes. But there's something else that has a higher impact.

In this episode we expose how unicorns such as Snowflake, Datadog and Asana drive hypergrowth. All revealed by reading their S-1s (IPO filings)

What does an agile go-to-market look like for b2b SaaS? That's exactly what we discuss in this episode.