ESTABLISH A BASELINE - WHAT ARE YOUR KPIs? ● SaaS is layered with metrics - you should have at least one key metric in each of these buckets Category Goals PnL & B/S Goals Unit Economic Goals ● Average Selling Price (ASP) ● Add logos (new business) with a ● Define value and pricing for a new ● Recurring Revenue (MRR/ARR) common profile category ● Net Revenue Retention (NRR) ● Grow revenue - existing business ● Grow an existing category As you plan pricing for 2024 do NOT have too many metrics ● Number of customers ● Improve gross profit ● Win market share in an existing ● Number of Users ● Improve cash flow category ● Value to Customer (V2C) ● Optimize costs ● Enter an established category It is difficult to focus on more than three metrics ● Lifetime Customer Value (LTV) ● Reduce operating capital ● Capture more value across the ● Customer Acquisition Costs Requirements value chain (CAC) ● Increase value of assets One can generally only optimize for one metric ● V2C/LTV ● LTV/CAC ● Months to Recover CAC PeakSpan Master Class I Ibbaka © 2023 11