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SaaS Metrics for Dummies

Dean Hume
April 07, 2016

SaaS Metrics for Dummies

This talk was first presented on the 7th April 2016. http://www.deanhume.com

Presentation Details

This presentation is an overview of the key metrics that are needed to understand and optimize a SaaS business. It runs though how SaaS businesses are different to the traditional business model and dives into the basic key metrics of SaaS businesses.

This talk is aimed at helping anyone involved in a SaaS business understand which variables really make a difference, and how to measure them and act on the results.

Dean Hume

April 07, 2016

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  1. ?

  2. What is SaaS? A licensing and delivery model in which

    software is licensed on a subscription basis and is centrally hosted
  3. 1. SaaS is different 2. Key Metrics 3. How to

    determine Success This Talk
  4. 3 Metrics 1. Cost of acquiring a customer 2. Lifetime

    value of a customer 3. Months to recover CAC
  5. CAC

  6. LTV

  7. Is the LTV > 3x CAC? We need a ratio

    of 3:1 to determine success
  8. How can we affect these numbers? • Reduce churn •

    Increase sales • Cross sell • Invest in profitable leads