CAC ratio

2 statements across 1 episodes · 1 bullish · 0 bearish · 1 people on the record · first statement Jan 31, 2024 by Dave Kellogg · across every show →

Everything said about CAC ratio, oldest first

Jan 31, 2024 positive
Insight
Kellogg: SaaS operators should calculate CAC ratio with new ARR, not net new ARR
“As an operator, I actually just do it on new ARR. My first order CAC is just, it's not net new, because net new introduced churn. You just made my metric more complicated, right? You made it easier to cheat. You took away some of its meaning.”
Dave Kellogg Jan 31, 2024 ▶ 10:23 Dave Kellogg: How to Forecast in 2024 & Why CaC Payback is Flawed and CAC Ratio is Better | E1110 · 20VC with Harry Stebbings
Jan 31, 2024 neutral
Insight
Kellogg: Good CAC ratio benchmark is 1.5 for enterprise, 1.0 for SMB
“I'd say a 1.5 or less is in enterprise. I mean, here we are back to your question. The bigger the deals, the more permission you have. So an enterprise, I might go one five. In SMB, I might go one O.”
Dave Kellogg Jan 31, 2024 ▶ 9:34 Dave Kellogg: How to Forecast in 2024 & Why CaC Payback is Flawed and CAC Ratio is Better | E1110 · 20VC with Harry Stebbings
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