SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders  cover image

Advanced Customer Acquisition Cost (CAC)

SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders

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How to Calculate NRR

The CAC ratio is an ARR metric, not a revenue metric. Our investors wanted, they were okay with a little bit higher CAC, because we were growing so fast but they wanted to maximize and optimize NRR. So I would say do both. If you got the 100k 200k 300k deal, I think it's okay to see you bought 100 units of ARR in year one and then show a great expansion. And that would be my worry is that you'll do both. It's no longer a contract expansion. Just say we have a bunch of data that says your average customer comes in at 100 and just I'll make it a very simple example. Then

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