Showpad targets an LTV:CAC ratio above 4 and attrition below 20%
Pieterjan Bouten · Scaling From $10M-$100M ARR: The Good, The Bad and The Ugly with Showpad Co-Founder Pieterjan Bouten · Aug 30, 2022 · at 36:43
Showpad co-founder Pieterjan Bouten discusses the operational metrics and financial targets Showpad uses to scale past $10M ARR.
0:00 / 0:28exact quote · 28.6s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“Now Showpad runs of, like, four or five key metrics that we measure, and we're really focused on improving. So it's, for example, LTV over CAC, and we want to see lifetime value over cost of acquisition. We want it to be, you know, at Four or higher. That, that's where we want to be. We're looking at net retention. We always needs to be, you know, we have certain targets per quarter depending on the renewal rate, but it's like we have targets there. We're looking at attrition. Like we will, we want to get that sub-twenty percent.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Pieterjan Bouten
Bouten: Strong competitors help create categories by spending VC dollars on evangelism
“I think here it's really important when creating a category, it's actually good to have some really strong and good competitors. I actually think it's, it really helps to, you know, you can basically use some of their VC dollars as well to eventualize the spac…”
Bouten: Replaced entire GTM leadership at once, resulting in 18 direct reports
“At some point basically the entire go-to-market leadership, I decided to replace them, but I didn't have, like, any new people yet. So, I ended up with, like, 18 direct reports.”
Bouten: Category classification aids sales and fundraising, but takes immense time
“You know, if people are able to put your company, your software into a category, it actually helps with selling more deals, it helps with closing funding rounds, because people have a better understanding in which space you're in. It impacts, ah, attracting ce…”
Showpad's gross churn jumped from 8% to 15-16% following LearnCore deal
“Up until that point, always had, like, single digit gross churn amazing net retention, but suddenly, like, Or gross churn was like double digits. It was like, we had a year of like, you know, going from like eight percent to like 15 or 16% because we were chur…”
Bouten: Sales enablement software is only at roughly 10% market penetration
“I think enablement is at like 10% penetration today. I think it's still a massive market.”
Bouten: Retraining 100+ GTM Staff for Post-M&A Platform Shifts Is Severely Underestimated
“The challenge is if you at that At that time, if you have, like, more than a hundred people in your go-to-market organization who have, for the last couple of years, have been going to market with a certain message, with a certain, you know, how the way, how w…”