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The Power of Data & Metrics

Co-led by Sandy Yu, Sandra Bustos & Jan Young

May 23, 2023

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House Keeping

  • Get the links - slack, slides, notes
  • Slack channel: #csoh-session-resources-and-ideas
  • Join the LI group
  • Overview
  • Case Study
  • Breakout Groups
  • Come back together

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Data & Metrics Tell a Story

  • Data - Assess what you have, gaps & maturity

  • What’s important? What are your questions? (Leader vs CSM)
    • Investors
    • Exec Team
    • Business
    • Your role/ contribution to the above
    • Product Usage Data
    • Customer Health
  • Leading vs Lagging Indicators & Metrics
  • How to Tell a Story: Visualization & Tracking
    • Book of Business (BoB), by CSM/ Mgr, Lines of Business, Regional, Overall
  • How to Get There: Next Steps

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What’s the Business Opportunity?

An approach for a CS Leader in an early stage startup

Phase 1: Reduce Cost of Customer Acquisition (CAC)

Phase 2: Drive Growth

  • No CS CAC Goal: Sales & Marketing own
  • NRR: Goal set using a 12 month cohort with a 12 month lookback
  • GRR: Goal set & measured quarterly
  • Renewal Rate: measured

Step 2: Set Goals

  • Get data (manual calculation) from billing system
  • Track NRR and GRR both monthly and in 12-month cohorts
  • Align on methodology & single source of truth for operational management (billing system or SFDC?)

Step 3: Get the Data & Start Tracking

  • Establish baseline for Customer Acquisition Cost (CAC)
  • Establish Baseline for Net Revenue Retention (NRR)
  • Establish Baseline for Gross Revenue Retention (GRR)
  • Establish Customer Renewal Rate Baseline (logos)

Step 1: Establish Baselines

Protip: Partner with Finance

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Breakout Session

Lightning Round of Intros

  1. What data and metrics do you want to look for and establish in your first 90 days in a role?
  2. What metrics do you use today? How are you getting the data?
  3. What are your next steps & goals to strategically improve your data & metrics?

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Resources

Videos

  • Erika Villarreal’s video on BoB metrics

LinkedIn Posts

  • Maranda Dziekonski 1st post 2nd post

Articles

  • SaaS metrics specific to retention
  • Rule of 40
  • Rule of 50

Definitions

  • Lagging Indicators - Ex: NRR & GRR Measures something after it occurred
  • Leading Indicators - Ex: Product Usage & TTFV (can be leading or lagging)

Measures something that impacts Lagging Indicators

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More Resources

SaaS Metrics

  • The SaaS CFO

Articles