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What Top SaaS Performers Spend to Acquire a Dollar of ARR
Published 10 months, 3 weeks ago
Description
In episode #289, Ben dives into one of his favorite SaaS metrics: Cost of ARR (Annual Recurring Revenue), also known as the SaaS CAC Ratio. This powerful go-to-market metric helps operators and investors evaluate how efficiently a company acquires recurring revenue. Ben breaks down how to calculate it, segment it, and benchmark it using the latest data from Ray Rike at Benchmarkit.ai.
What You’ll Learn:
- What is Cost of ARR and why it matters for SaaS operators and investors
- The formula
- How to calculate blended, new, and expansion Cost of ARR
- Latest benchmark data by ACV from Benchmarkit.ai
- Why aggregate benchmarks are risky and how to segment by ACV size
- How to use this metric to validate your bookings forecast and GTM budget
- When to adopt this metric
Resources Mentioned
- Benchmark your SaaS business: Benchmarkit.ai (give-to-get model)
- Ben’s blog, templates, and courses at TheSaaSCFO.com
- Join the SaaS Community: https://www.thesaasacademy.com/offers/dzSx6W32
- Stay in the loop with exclusive SaaS content: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page