Assertion Contradicted AI assessment confidence: 85% certainty 4/5 debate potential 1/5

Rike: Median New Customer CAC Ratio Is $1.58

Ray Rike · Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023 · Jun 19, 2023 · at 11:42

This episode carries Ray Rike's own address, with nobody on the show putting questions to them. It still counts as said, and it is kept out of every score on their page.

Ray Rike presents SaaS efficiency benchmark data comparing new customer acquisition costs versus expansion ARR.

0:00 / 0:17exact quote · 17.4s
720p mp4 · rendered on demand · StarZero watermark
“New looks at how much sales and marketing expense did I invest to pursue new customer logos and ARR from those new customers. So you see it's much higher. It's a dollar 58. Because it's harder to grow ARR from new customers.”

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 Ray Rike

Assertion Supported
Rule of 40 is now the metric most correlated with SaaS valuation
“But it's now the number one SAS metric as correlated to enterprise value in the next 12 months revenue. A year ago, it was number five. Growth is still number two. But balanced growth with profitability is number one.”
Ray Rike Jun 19, 2023 ▶ 4:44 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Opinion
CAC ratio is superior to the SaaS Magic Number
“CAC ratio to me is superior to the rule of 40. Why? I'm sorry. The SAS magic number. Why? Because you can measure how much sales and marketing investment you need to make for one dollar of new name ARR, and How much sales and marketing, customer success invest…”
Ray Rike Jun 19, 2023 ▶ 5:04 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Insight
CLTV to CAC ratio is meaningless for $1M ARR SaaS startups
“If someone says, I'm concerned about your CLTV to CAC ratio at a million dollars, you need to wonder why you're working with that person, because it's pretty meaningless”
Ray Rike Jun 19, 2023 ▶ 5:30 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Insight
SaaS customer acquisition efficiency typically drops at $7M to $15M ARR
“When you hit kind of 10 to fifteen million, it gets more difficult to acquire new customers. Why? You've hit the cream of the crop. Now you might be getting those early majority buyers. If you look at the crossing the chasm technology life cycle adoption curve…”
Ray Rike Jun 19, 2023 ▶ 8:37 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Insight
Rike: CAC Payback Must Always Be Gross Margin-Adjusted
“Payback period should always be a gross margin adjusted calculation.”
Ray Rike Jun 19, 2023 ▶ 6:22 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Insight
Rike: CAC Payback Correlates With ACV Rather Than Total ARR
“Whether you're a five million dollar ARR, SAS company, or 20, that has a lot less correlation to CAC payback period. Than the size of your average annual contract value.”
Ray Rike Jun 19, 2023 ▶ 6:50 Top 5 SaaS Performance & Revenue Efficiency Metrics that Matter in 2023
Made with StarZero

Turn any episode into a week of clips.

This entire site, over 2,600 episodes transcribed, diarized, checked and made playable, runs on the StarZero media pipeline. Drop in your own episode and the podcast clipper finds the moments worth sharing, cuts them, captions them, and reframes them for every feed.