Post on 23-Jan-2017
The Most Lucrative Business Model on the Planet
The Colossal Shift in Risk
Customer Risk
Large install, training, utilization
Provider Risk
Outcome and Engagement
The Colossal Shift in Risk
Customer Risk
Large install, training, utilization
Provider Risk
Outcome and Engagement
The Colossal Shift in Risk
….Leads to a Colossal Shift Toward You
Product Outcome
Partners Create Outcome and Engagement
Mastering the Cash Flow Challenge
David Skok SaaS Metrics 2.0
Mastering the Cash Flow Challenge
David Skok SaaS Metrics 2.0
Customer Acquisition
Customer Acquisition Cost (CAC)
• Salary and Bonus• Time• Support• Marketing and Lead Generation• Admin
Optimal Payback
CAC Payback < 12 Months
Optimal Business
Lifetime Value (LTV)> 3x CAC
1x – Cover Acquisition Costs2x – Cover admin, support 3x – Allow for reinvestment and profit4x – Under investing
Decrease Cost of Acquisition
Optimal Business
LTV > 3x CAC
Lifetime Value
• Lengthen Time• Increase Spend
Customer Life After Contract Term
0 months 30 months 60 months
Lengthen Time
• Great Installs– Great Design – Project Management
• Retention plan
Lengthen Time
• Engagement– Relationship – Time Invested– Predictive Advisement – know there’s a
problem before your customer
Increase Spend
• Trusted Advisor
• Upselling and cross selling
• Billing
Recap
LTV > 3x CACLower Cost of Acquisition• Engineering• Project Management• SME Program
Increase Customer Life• Time Expended• Relationship• Retention Plan
Increase Customer Spend• Monitoring• Upsell/Cross Sell• Billing