Insight certainty 4/5 debate potential 3/5

A 24-Month CAC Payback Is Acceptable With Five-Year Enterprise Retention

Osman Rashid · 1595 Chegg Founder's New SaaS Company Breaks $7m ARR To Help CNBC Communicate · Dec 6, 2019 · at 15:09

Osman Rashid, CEO of enterprise collaboration platform Convo, discusses enterprise sales economics and CAC payback tolerance.

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“So you're willing to, you know, pay twice as much as what the value would be in the first year. Cause if a customer is staying for five years, you're doing pretty well.”

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“It's below five percent actually.”
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“Yeah, look, I mean, the cohorts in which you come in from a customer, say a customer that started in 2017, right? We, if we take a look at that as a cohort, we see almost 250% growth on average within, within a customer.”
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“We're at the stage where we can predict five X growth just in the first quarter over all of 2018.”
Osman Rashid Dec 6, 2019 ▶ 15:47 1595 Chegg Founder's New SaaS Company Breaks $7m ARR To Help CNBC Communicate
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97% of Convo Usage Is Document Collaboration, Not Messaging
“Our use case really is three percent of us as users for messaging, so we frankly plan to integrate with products like Slack. 97% of our use case is people working on a document or a conversation in large groups”
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“Because in a large entity, such as H&M, 80% of your workforce doesn't have email.”
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“So what we find is 90 plus of our customers, 90% plus of our customers who have gone to more than 20 users, they don't churn.”
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