In the first episode, I talk about my favorite SaaS metric, the Cost of ARR (aka SaaS CAC Ratio).
Highlights:
- You can calculate blended, new, and expansion
- Requires new and expansion bookings data
- Need total sales and marketing expense
- You must allocate S&M for the Cost of ARR New and the Cost of ARR Expansion
- Sales cycle length is important
- Easy way to call BS on a bookings forecast with this metric
