How to Benchmark Your SaaS Business Using ARR Bands, ACV Bands, and Quartiles
Are you benchmarking your SaaS business against a median that doesn't apply to you?
In episode #390, Ben Murray breaks down how to benchmark SaaS metrics the right way. Calculating accurate ARR, churn, and CAC payback every month is hard enough, but a number without context won't help you in a fundraise, due diligence, or exit. If you're benchmarking against the aggregate SaaS population, you may be making decisions on data that has nothing to do with your business.
- Understand why aggregate SaaS benchmarks, like a population-wide median GRR, can mislead you and why Ben calls them dangerous to your health
- Learn when to benchmark by ACV band (go-to-market metrics like CAC payback and retention) versus ARR band (OpEx profile, R&D spend, and growth patterns)
- See why a $5K ACV product and a $50K ACV product should never be held to the same CAC payback or retention expectations
- Know what to look for in a benchmark report: P25, median, and P75 quartiles, so you can see how close you are to top-quartile SaaS performance
- Get access to the Ultimate Guide to SaaS Metrics Benchmarks, plus a markdown file you can load into your favorite LLM to benchmark every metric in the Five Pillar SaaS Metrics Framework
Tune in to learn how to benchmark like the best SaaS companies do, and walk into your next raise or exit knowing exactly where you stand.
Resources Mentioned
- Ultimate Guide to SaaS Metrics Benchmarks: https://www.thesaascfo.com/saas-metrics-benchmarks/