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Michael Litt

๐Ÿ‘ค Speaker
457 total appearances

Appearances Over Time

Podcast Appearances

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Right.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So, you know, our growth retention target per year is 95%.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So that is if like discounting all upsells and just looking at the base of customers we enter a year with from a revenue basis, we want to retain 95%.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

95% of that revenue in the year.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And that's an organization wide metric.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Our net retention numbers, including upsell are in the 130 to 135% per year.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So what that means is if we were to shut down all of our new business acquisition programs and just focus on

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

working with our customers, delivering new technologies and upselling them, our business would grow at 30 to 35% year over year.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

We're just shy of 70 million.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Yes, absolutely.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

I mean, so our, our, our target payback, and again, we're kind of in a growth phase is a year and a half.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Yeah.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So with an average average, and again, so what we're doing now, interestingly enough is it gets more complex at this stage.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

We start to segment out through groups, right?

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

So our SME customers, small, medium enterprise, you know, they're not spending 20 to 30 per year.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

And so our acquisition costs for them has to be much cheaper because

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

It's just a side note, but on a blended perspective, if our average customer is, you know, $30,000 per year and we have a year and a half payback target, that means that we're spending $45,000 to acquire them.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Yeah, it's, you know, it's interesting because we, yeah, we use the formula.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

We use the standard formula for CLTV.

SaaS Interviews with CEOs, Startups, Founders
EP 414: $70M Raised, $30k ACV, SaaS Success VidYard

Oh, shit.