CAC Ratio - The Alignment KPI
This edition of the RevOps Squared Video Blog highlights the anchoring effect of the CAC Ratio to enhance alignment across Marketing, Sales, and Customer Success.
This video discusses the three types of CAC ratios that every SaaS company should measure including 1) New Name Customer CAC Ratio; 2) Existing Customer Expansion CAC Ratio; 3) Blended New ARR CAC Ratio. In addition, Ray introduces why each Go-To-Market department should have its own CAC Ratio that is directly aligned and impact the Company CAC Ratio. Come learn more about Marketing CAC Ratio, Sales CAC Ratio, and Customer Success CAC Ratio
Sales Development CAC Ratio
This edition of the RevOps Squared KPI Benchmarking Video Blog discusses the Sales Development CAC Ratio.
This Key Performance Indicator measures the efficiency of every dollar invested in Sales Development against every dollar of ARR generated.
Two versions of the Sales Development CAC Ratio are discussed, including 1) SDR Attributed CAC Ratio (Outbound); 2) Non-attribution CAC Ratio (Inbound).
RevOps Squared recommends that all SaaS companies use the CAC Ratio as an anchor, alignment KPI across all Go-To-Market teams including Marketing, Sales Development, Sales, and Customer Success.
Marketing CAC Ratio
This edition of the RevOps Squared Video Blog details the calculation and anchoring effect of the Marketing CAC Ratio as a critical alignment Key Performance Indicator.
This video discusses two recommended Marketing CAC Ratios that every SaaS company should measure including:
1) No Attribution Marketing CAC Ratio; 2) Marketing Attribution CAC Ratio.
In addition, Ray introduces other KPI's that help to measure the return on each dollar of Marketing Investment and enhances alignment between Marketing, Sales, and Customer Success.
Customer Success Customer Acquisition & Customer Retention Cost Ratios
Customer Success is a growing profession, gaining material importance in SaaS companies. As the SaaS industry continues to mature, expansion revenue and customer retention are 2 of the most critical variables that drive Enterprise Value.
Most SaaS companies only calculate the New Customer Acquisition Ratio and miss the Expansion Customer Acquisition Cost Ratio, This efficiency KPI becomes more material as a SaaS company reaches 20% - 50% of growth coming from existing customers.
What is the cost to retain/renew each existing $ of ARR?
Learn how the Customer Success CAC Ratio and Customer Retention Cost Ratio to anchors alignment across Marketing, Sales, and Customer Success