All Episodes
Episodes
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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Have You Adjusted Your Sales and Marketing Efficiency Metrics for Variable Revenue?
In episode #15, I address variable revenue and sales and marketing efficiency metrics. This is Pillar 5 in my 5 Pillar SaaS Metrics Framework. Variable revenue can be usage, processing, transaction, consumption, etc....
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What Time Period Should I Measure for Revenue Retention?
In episode #14, I address time periods and revenue retention. This was a question from my student community enrolled in my SaaS Metrics Foundation course.
- Are we talking about aggregate revenue retention?
- We can...
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Do You Know Your Margins by Revenue Stream?
In episode #13, I address our margins by revenue stream. It’s so important to have an accurately calculated gross margin and margins by revenue stream. It affects how you read your business and your SaaS metrics. You...
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How to Correctly Calculate Your Overall Gross Margin
In episode #12, I address our overall gross margin. It’s so important to have an accurately calculated gross margin. It affects how you read your business and your SaaS metrics.
- What is our gross margin?
- How to...
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