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Is it time to ditch the old SaaS metrics? - Kyle Poyar’s Growth Unhinged

kylepoyar.substack.com · 168 words · saved by 1 readers

How to manage a SaaS company in the era of Product Led Growth

We’ve grown accustomed to the traditional set of SaaS metrics as just part of how to operate a SaaS business. It’s hard to conceive of what to do without metrics like CAC payback, LTV:CAC, average ACV, or the magic number. Here’s the thing: the traditional SaaS metrics playbook can be extremely misleading when it comes to managing a PLG or consumption-based SaaS company. (Battery has a helpful visual of this in their latest Software 2021 report.) Let’s look at a few examples, shall we? Product as a growth driver: Atlassian spends only 19% of their revenue on sales & marketing (slower…

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