SaaS Metrics School

What is the Cost of ARR

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In the first episode, I talk about my favorite SaaS metric, the Cost of ARR (aka SaaS CAC Ratio).

Highlights:

  • You can calculate blended, new, and expansion
  • Requires new and expansion bookings data
  • Need total sales and marketing expense
  • You must allocate S&M for the Cost of ARR New and the Cost of ARR Expansion
  • Sales cycle length is important
  • Easy way to call BS on a bookings forecast with this metric
    • ...more
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    SaaS Metrics SchoolBy Ben Murray
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