Sales Efficiency Metric for SaaS Excel Template
  • Sales Efficiency Metric for SaaS Excel Template
  • Sales Efficiency Metric for SaaS Excel Template
  • Sales Efficiency Metric for SaaS Excel Template
  • Sales Efficiency Metric for SaaS Excel Template
Originally published: 16/02/2018 14:23
Publication number: ELQ-25613-1
View all versions & Certificate
certified

Sales Efficiency Metric for SaaS Excel Template

A forgotten sales efficiency metric Excel Template for SaaS businesses, along with instructions on how to use it.

cacexcelltvmarketingmetricsaassalessales efficiencysales teamservice as a software

Description
Anyone in SaaS will have heard about new customer acquisition costs (CAC) and its relation to lifetime customer value (LTV). Also known as the CAC : LTV ratio. During SaaS podcasts, the cost of customer acquisition in a dollar sense that isolates existing business is rarely discussed. Generally, we take the necessary steps to calculate CAC, but forget about another key SaaS metric. By using a couple more pieces of data, we can measure the cost of acquiring existing businesses (think upsells and expansion!).

Ben expanded his customer acquisition template and added the missing pieces of data required to determine upset efficiency:

> ARR from New Business
> ARR from Existing Business

That’s the only extension needed in the CAC calculation to determine the cost of one dollar of new ARR (or maybe MRR in your case).

At the end, you will get a cents on the dollar calculation. For every $X you spend in sales and marketing, you generate $1 of new ARR.

This calculation is very straight-forward and serves as an intuitive way to look at your sales and marketing expenses. It allows you to decide whether to invest more in these areas or to wait until you have a better traction.

This business tool includes
1 Excel File

Ben Murray offers you this business tool for free!

download for free

Add to bookmarks

Discuss

Reviews


keyboard_arrow_leftkeyboard_arrow_right

More tools from Ben Murray

See all
keyboard_arrow_leftkeyboard_arrow_right

Any questions on Sales Efficiency Metric For SaaS Excel Template?

The user community and author are here to help. Go ahead!

please wait...