Best Practices

SaaS Metrics Masterclass for Buy-In

Andy Drummond, CFO of channel technology company Zift Solutions, talks about the metrics that are important to CFOs and decision makers outside of the channel.

This entry is part 8 of 9 in the series SaaS Venture and Partnering Strategies

In this special masterclass episode of SaaS Connect by Cloud Software Association, Andy Drummond, CFO of channel technology company Zift Solutions, talks about the metrics that are important to CFOs and decision makers outside of the channel.

If you’re trying to get buy-in from a decision maker, this session will prove invaluable.

There are three sections to the masterclass:

ROI as a concept

  • Partner NPS (shows how likely your partner base is to recommend you to other partners).
  • Segmentation analytics.
  • How both the above metrics are compelling to decision makers. Understand what’s important to your CFO or decision makers and make sure that you’re building your return on investment business cases around them.

Other channel metrics and their application

Understand why your company decided to pursue channel and use channel metrics to prove the theory. Use them to evidence the high potential and low risk of what you’re doing in your channel today or what you’re intending to do in the future.

SaaS metrics

  • What they are, why they’re important specifically to SaaS, and how to apply them to your channel.
  • SaaS decision makers care most about SaaS metrics to run the company. Calculate metrics segmentally and see how you stack up against the direct business. Andy builds up a working example as he goes through these metrics, to help you understand how all the SaaS metrics link together.
  • Recurring revenue growth (MRL and ARR) is the most simple but most important SaaS metric; it is the total of the subscription fees your customers are paying you monthly or annually.
  • Customer acquisition cost (CAC) and payback period are go-to-market costs that are focused on new customer acquisition, typically sales and marketing costs.
  • Churn or net retention is the percentage rate at which SaaS customers leave you or cancel their subscriptions.
  • Customer lifetime value (LTV) is the value of gross margin your customer will bring you over the lifetime of their subscription with you. How to compare it with CAC.

Finally, Andy provides valuable tips for using SaaS metrics to create excitement about potential.

Series Navigation<< Affiliate Marketing for SaaS – Building & Scaling your Partner ProgramHow to Partner with SaaS Marketplaces and Platforms like Xero >>

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