A New Way to Calculate a SaaS Company's Efficiency
Tom Tunguz
APRIL 10, 2016
There many ways of measuring a SaaS company’s efficiency: magic number, payback period on cost of customer acquisition, lifetime value to cost customer acquisition ratio, quick ratio. These metrics primarily focus on measuring efficiency in customer acquisition. But, a software company’s true efficiency also have to include the cost to service contracts.
Let's personalize your content