OPEXEngine

APRIL 26, 2022

Well, capturing as much total available market (TAM) makes growing your business through customer acquisition necessary. What is Customer Acquisition Cost (CAC)? Customer acquisition cost (CAC) is arguably one of the most important metrics for fast-growing B2B SaaS companies. So why even bother?

Acquisition 59

Acquisition B2B Benchmarks SaaS 59

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

Cloud 226

Cloud Payments Software Review Payment Solutions 226

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 244

SaaS Technical Review Benchmarks Azure 244

Tom Tunguz

DECEMBER 16, 2021

Tokens are the paid customer acquisition channel of web3. By analyzing how web3 companies invest tokens, we can calculate the cost of customer acquisition (CAC) for a crypto company. Let’s contrast the sales and marketing investments of web2 companies to web3 companies. L1 Web3 companies spend 29-95%.

Venture Capital 238

Venture Capital Blockchain Acquisition Benchmarks 238

Chart Mogul

SEPTEMBER 8, 2021

The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021. VC-backed startups are buying other startups at the fastest pace in over a decade and North American startup investment totaled 155 billion this year so far. Thomas Smale, FE International.

Scale 52

Scale Acquisition Scaling Sales Hiring 52

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Think of it this way: most SaaS companies have high customer acquisition costs, as you have to invest heavily in sales and marketing in order to realize high growth. considered a “healthy” or “attractive” SaaS company to invest in. How does the Rule of 40 work?

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

OPEXEngine

SEPTEMBER 15, 2021

OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. Investors and software company management need high quality and neutral benchmarks to assess their operational performance, reduce risk and improve efficiency.

Software Review 52

Software Review Benchmarks Technical Review Development Team Review 52

Tom Tunguz

JUNE 12, 2016

The acquisition frenzy continues in SaaS. In the 2016 acquisition market, the median acquisition multiple is 7.8x In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft. billion, which prices the business at 8.1x

Acquisition 100

Acquisition Startup Banking Benchmarks 100

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. Altimeter is an investment adviser registered with the U.S.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

NOVEMBER 5, 2021

To grow faster in general, and to expand into segments where maybe you are less competitive (and thus have to invest more in sales and marketing). Including free acquisition and viral acquisition obscures underlying (in)efficiencies. And IVP has published some data to help you benchmark it. or so (e.g.,

Scale 242

Scale SaaS Acquisition Benchmarks 242

SaaStr

SEPTEMBER 19, 2023

The right-hand graph shows that deal count and overall investments have fallen. PLG is about investing in product and data instead of sales and marketing. Notion Capital came up with a benchmark for the days when you’re below $20M ARR. Now, the lows appear to stabilize around the levels we saw in 2016. Apple hasn’t done any.

Business Model 227

Business Model SaaS Payments Payments Headcount 227

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

Tom Tunguz

SEPTEMBER 10, 2013

Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Below is my list of the six most important benchmarks and observations from that report.

Benchmarks 108

Benchmarks Startup Sales Hiring Compensation 108

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Your technical infrastructure?

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

OpenView Labs

NOVEMBER 12, 2020

When we were preparing the 2020 expansion SaaS benchmarking survey, our biggest question was: “How did COVID-19 and the economic downturn affect private SaaS companies?” It now matches sales and marketing spend at the average SaaS company as folks continued to put significant investments into R&D during the pandemic.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

Tom Tunguz

AUGUST 26, 2014

To grow at that pace, HubSpot has been investing aggressively in sales and the company is widely respected for its content marketing prowess. But that incremental revenue costs about 75% more in customer acquisition costs over the same period. In the short term, the increasing costs of customer acquisition decrease net income.

Benchmarks 108

Benchmarks SMB Metrics SaaS 108

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. Altimeter is an investment adviser registered with the U.S.

Cloud 169

Cloud Software Benchmarks Retention 169

User Pilot

OCTOBER 15, 2023

SaaS conversion rate optimization is important to create the best customer experience that helps lower the customer acquisition cost and increase MRR. Use benchmarks to monitor your performance to see how well each stage converts. The industry benchmark for this metric sits at 8.5%. Imagesource: Firstpagesage.

SaaS Payments 105

SaaS Payments Payment Methods Payment Solutions Payments 105

Tom Tunguz

JANUARY 14, 2015

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Xero does exhibit an amazing sales efficiency metric of 1.05, meaning $1 invested today in sales and marketing yields $1.05

Benchmarks 100

Benchmarks Metrics SMB Outsourced Development 100

Stax

FEBRUARY 21, 2024

By analyzing the SaaS Magic Number, SaaS companies can determine how well their revenue-driving investments (in sales, marketing, and customer retention) are translating into actual revenue growth. It helps businesses understand the effectiveness of their customer acquisition and retention strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Tom Tunguz

DECEMBER 10, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. In order to achieve this growth, Box has invested a huge amount of capital. to 0.54, which is about 36% less than the median.

Benchmarks 100

Benchmarks Sales Hiring Metrics SaaS 100

ChurnZero

JUNE 9, 2023

This will help the finance team relate proposed investments aimed at supporting renewal with business growth. A healthy benchmark is a 95% renewal rate in a given period. A healthy GRR industry benchmark is 80-85% while high-performing SaaS companies often reach 90%. A healthy benchmark is 100% NRR or greater.

Finance 98

Finance Metrics Customer Success Headcount 98

Tom Tunguz

SEPTEMBER 2, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Some might argue that the relatively heavier investment in R&D should reduce the need for Sales & Marketing expense.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Tom Tunguz

SEPTEMBER 21, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. The company went public in 2013 and we’ll use data from their S-1 through 2013 to benchmark the business.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Kellblog

OCTOBER 30, 2022

One of my new benchmarking themes is that people need to pay more attention to matching their benchmarks with their aspirations. Customer acquisition cost (CAC) ratio of 1.2 2] As I said in a recent speech, it’s the difference between benchmark off all SAT test takers and Ivy League applicants. blended, 1.8

Metrics 136

Metrics SaaS Benchmarks Churn 136

Tom Tunguz

NOVEMBER 16, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. This substantially higher relative burn rate is driven by massive investment in sales and marketing.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Retention 161

Buffer Resources

JANUARY 19, 2024

From the moment I started my company, Motif Skincare , I knew I was entering a crowded market with high customer acquisition costs.   We measure against our own benchmarks to learn what works for our customers When it comes to email marketing or any marketing strategy, it’s so tempting to mimic what everyone else is doing.

Marketing 99

Marketing Benchmarks Social Media Retention 99

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Your technical infrastructure?

Acquisition 52

Acquisition Startup Underperforming Technical Team Customer Lifetime Value 52

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. This finding doesn’t come as a major surprise.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

Andreessen Horowitz

AUGUST 22, 2023

Investors often use 3x LTV:CAC as a rough benchmark of a consumer company’s financial health. If your customer lifetime value (LTV) is 3 or more times your customer acquisition cost (CAC) within 5 years, that means your company has efficient returns on sales and marketing spend.

Customer Lifetime Value 70

Customer Lifetime Value Benchmarks Investment Metrics 70

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

OpenView Labs

MAY 24, 2021

In OpenView’s 2020 SaaS benchmarks , we pointed out that public markets were starting to take notice of product-led companies. Like OpenView’s coverage of SaaS metrics and benchmarks? Please consider participating in our 2021 Financial and Operating Benchmarks Survey —now open! Atlassian has an R&D:S&M ratio of 2.9:1.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources.

Scale 102

Scale Sales Hiring Metrics Sales 102

yoursales

JUNE 2, 2023

By estimating future revenue streams, organizations can determine the appropriate investment in marketing campaigns, sales training, customer acquisition, and retention strategies. It provides a benchmark to measure individual and team achievements, identify gaps, and implement necessary corrective measures.

Forecasting 86

Forecasting Sales Sales Funnel B2B 86

Buffer Resources

JANUARY 19, 2024

From the moment I started my company, Motif Skincare , I knew I was entering a crowded market with high customer acquisition costs.   We measure against our own benchmarks to learn what works for our customers When it comes to email marketing or any marketing strategy, it’s so tempting to mimic what everyone else is doing.

Marketing 69

Marketing Benchmarks Social Media Retention 69