All Episodes
Episodes
What is the Difference Between an Upsell and a Cross-sell?
In episode #27, I address the nuances of software bookings. It’s important to track expansion ARR just like new customer ARR. There are two types of expansion bookings.
- What is an upsell?
- What is a cross-sell?
-...
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If I Offer Self-service SaaS Do I Still Track Bookings?
In episode #26, I address software bookings. What if I offer a self-service SaaS product? Low ACV and a high volume of customers.
- Are software booking still applicable?
- What data should I track?
- How do I create...
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What is a Software Booking?
In episode #25, I address software bookings. Bookings are the life of a SaaS business. It’s so important to track bookings accurately, but it is often harder than you think.
- What is a software booking?
- Where do I...
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The Advanced Lifetime Value Formula and Its Dangers
In episode #24, I address the advanced customer lifetime value (LTV) formula. But we have to be careful how we used the advanced formula. Let's talk about the additional inputs and the outcome.
- How to make LTV more...
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LTV is NOT a Standalone Metric
In episode #23, I address customer lifetime value (LTV) as a standalone metric. It's not! We must compare it to CAC just like CAC can’t be used as a standalone metric.
- Why LTV is not a standalone metric?
- We...
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Should I Use LTV If I Target High ACV Customers?
In episode #22, I address customer lifetime value (LTV) when we chase mid-market and enterprise customers. Does LTV provide much value in a higher ACV environment?
- What’s my target market?
- Low price point SaaS...
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LTV is a Point in Time Metric
In episode #21, I address customer lifetime value (LTV). This is a point-in-time metric! We do not calculate this for our entire customer base. It’s also not valuable as a standalone metric.
- The time period of...
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What is Customer Lifetime Value
In episode #20, I address customer lifetime value (LTV). LTV estimates the total cash flows that we will receive over the lifetime of a customer. It’s an estimate and changes with every new cohort.
- What is LTV?
-...
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Don’t Forget Sales Cycle Length in Your S&M Metrics
In episode #19, I address how sales cycle length impacts the calculation of your sales and marketing efficiency metrics. This question always comes up in my SaaS metrics course and coaching. Get this wrong and your...
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Why is Department Coding So Important?
In episode #18, I address department coding. This is the second pillar in our proper SaaS accounting foundation. First, we need a proper chart of accounts. Second, we need the proper departments in our accounting...
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What Is This Chart of Accounts That I Hear About?
In episode #17, I address the chart of accounts or COA. It forms our accounting in SaaS. If the COA is wrong, our SaaS P&L and SaaS metrics will be wrong.
- What is a chart of accounts?
- Why is the COA...
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Why Is the Rule of 40 Back in Style?
In episode #16, I address the Rule of 40, a popular investor metric. As a SaaS CFO, I like to say that financial discipline never goes out of style. There are lovers and haters of the Rule of 40. When investments were...
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