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Mellstrand: A SaaS magic number below 0.8 signals no product-market fit

Robin Mellstrand · 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+ · Aug 21, 2018 · at 17:05

Robin Mellstrand, CEO of Loop 54, breaks down how to interpret the SaaS magic number metric for sales and marketing efficiency.

0:00 / 0:18exact quote · 18.6s
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“And if you are about one, you're doing fantastically great. If you are below 0.8, you may not have a product market fit yet. You may have to think about more. You should think about if you really should invest in sales and marketing at that point, because you may not be as efficient as it should be.”

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More from Robin Mellstrand

Assertion Not checkable as stated
Loop 54 reaches $3.1 million ARR across 130 clients
“We have a 130 clients, and we are three million dollars there, or 3.1 maybe.”
Robin Mellstrand Aug 21, 2018 ▶ 5:00 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
Assertion Not checkable as stated
Loop 54 processes about one billion search queries monthly
“Right now we are, have about a billion a month.”
Robin Mellstrand Aug 21, 2018 ▶ 7:28 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
Assertion Supported
Loop 54 raised around $3M in total funding
“In total around three million dollars.”
Robin Mellstrand Aug 21, 2018 ▶ 8:42 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
Assertion Not checkable as stated
Loop 54 experienced 6% annual revenue churn
“We had, I believe, a six percent churn in total last year.”
Robin Mellstrand Aug 21, 2018 ▶ 9:48 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
Assertion Not checkable as stated
Loop 54 maintains 100.5% net revenue retention
“Yeah, I think we're at a 100.5%.”
Robin Mellstrand Aug 21, 2018 ▶ 10:02 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
Assertion Not checkable as stated
Loop 54 sees 10.9-month CAC payback on $20,000 customer acquisition cost
“But on average, we are looking at a CAC PP of 10.9 months. So we are on average. Last year we paid 20,000 dollars to acquire a customer.”
Robin Mellstrand Aug 21, 2018 ▶ 12:49 1123 Ecommerce Brands Pay Him $3m To Increase Average Cart Value 12%+
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