Kellogg: Subscription SaaS Companies Were Hit Harder Recently But Still Grow Faster
Dave Kellogg · 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 · at 1:09:13
Dave Kellogg, SaaS advisor and former CMO of Business Objects, discusses pricing mechanics during a quick-fire round on 20VC.
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“The great paradox right now is that people who are in subscription pricing generally have been hit harder than those who are not, but they're nevertheless still growing faster.”
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More from Dave Kellogg
Kellogg: VCs stop calling SaaS startups with CAC payback exceeding 24-36 months
“I do think somewhere around 24 to 36 months people stop calling you back, so you have a different problem. It doesn't matter how good your story is if you don't get the meaning.”
Kellogg: Startups blaming rising CAC on 'low-hanging fruit' underestimate market size
“I think most startups, when they make that argument to me, I think they're vastly underestimating the size of their market. That if you have a really, really big market, That, that you haven't picked all the low hanging fruit.”
Kellogg: SaaS NRR dropped to 105%, driven mainly by increased churn
“And by the way, if you asked, like, the most recent study, I think, said one oh five. The reason I said one oh eight is I just can't make my mouth say one oh five. But I think it may have come down from one 20 to one oh five, to be honest, and I think it's thr…”
Kellogg: Pitched against competitor hunters, SaaS customer success farmers always lose
“The single biggest sin in SAS is putting your farmer against someone else's hunter, right? Cause they will lose.”
Kellogg: Leaders should be unsympathetic to CS VPs missing churn forecasts
“So, so I just think CS for it, I am, if a VP of sales misses their forecast, I'm somewhat understanding. To me, it's I'm not very sympathetic to a VP of CS that misses their forecast, because how is it that you didn't know?”