Shafiq: High-growth companies derive over half their revenue from existing accounts
Hatem Shafiq · a16z Podcast | The Rise of the CCO · Jan 2, 2019 · at 3:35
Hatem Shafiq, an executive customer success leader, discusses how fast-growing SaaS companies rely heavily on existing customer expansion rather than basic renewals to fuel growth.
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“You take any good growing company that is growing at whatever, 50, 60% or higher, half or more than half of their revenue comes from existing customers, which means renewal is just not a part of the game.”
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Shafiq: Most customer success expenses must be classified as COGS, not CAC
“You could account for some of this as CAC depending on how much of upsells they're driving. And if you actually have a formula, That, you know, is put against the new ARR that they're able to drive, and you might be able to justify it as CAC. But mostly it's C…”