20VC: The Metrics That Matter in SaaS Today; Why CaC Payback is Flawed & CAC Ratio is Better, Why You Need to Hire Three Sales Reps at a Time, How to Forecast in 2024 & Biggest Mistakes Made Forecasting & How to Make Customer Success Sell More with Dave K

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The Twenty Minute VC

Finance, Venturecapital, Tech News, News, Siliconvalley, Technology, Investing, Startups, Business

4.4 • 637 Ratings

🗓️ 31 January 2024

⏱️ 70 minutes

🔗️ Recording | iTunes | RSS

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Summary

Dave Kellogg is one of the OGs of Saas. Among his many accomplishments, Dave was the CMO of Business Objects where he helped scale the business from $30M to $1BN in revenue. Dave has also been a CEO twice, once scaling the business from $0 to $80M and the other business from $8M to $50M before selling it. Dave is also an advisor to some of the best including GainSight, Logickull, MongoDB, Pigment, Recorded Future, and Tableau.

In Today's Episode with Dave Kellogg We Discuss:

1. What are the Metrics That Matter:

Why is CAC payback period such a flawed metric?
What is CAC ratio? Why is it more effective than understanding payback?
Why is gross revenue retention more important than net revenue retention?
What are the single biggest mistakes that founders make when using metrics today?

2. How to Build and Scale the Best Sales Teams:

Why should founders hire three sales reps at one time? What is the benefit?
What are the three different types of sales calls all teams must have?
What should all CEOs and Heads of Sales ask of their sales team in forecasting?
What is the single biggest mistake most companies make in forecasting?
How should a CEO/board member respond to a sales team that lets a deal slip to next quarter?

3. Are CFOs Buying New Tech and How to Win Renewals:

Are CFOs open for business? How has the top down sales process changed in the last year?
Why is the way that startups think about renewals completely broken?
What are the three different types of customer success teams we have today?
What is the core role of customer success? How can we incentivise them to sell more?

4. Mastering Product Marketing, Customer Profiles and Crossing the Chasm:

How can we use product marketing to increase sales velocity?
What is the single biggest risk in product marketing today?
What does Dave mean when he says "an ICP starts as an aspiration and becomes a regression?"

Transcript

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0:00.0	I can summarize all of Jeffrey Moore in one sentence, which is people buy when they think
0:06.1	people like them use your solution.
0:08.7	ICP, ideal customer profile, ICP starts out as an aspiration and over time it becomes
0:14.1	a regression.
0:15.1	There's three different types of calls.
0:16.1	So let me just define what I think the calls are.
0:18.0	There's a forecast call.
0:18.9	There's a pipeline scrub and there's a pipeline scrub, and there's a deal review.
0:21.6	The single biggest sin in SaaS is putting your farmer against someone else's hunter.
0:25.8	This is 20 VC with me, Harry Stebbings, and I think Dave Kellogg is one of the smartest people in SaaS, period.
0:31.4	He is a master of metrics, and today, we dive into the metrics that matter in SaaS today.
0:36.9	Dave was previously CMO at Business
0:38.9	Objects, where he helped scale the business from $30 million to a billion in revenue. Dave's also
0:44.9	been a CEO twice, once scaling the business from zero to $80 million in revenue, and the other
0:50.4	business from $8 to $50 million before selling it. But before we dive into the show today, there's no shortage of helpful AI tools out there,
0:58.4	but using them means switching back and forth between yet another digital tool.
1:02.6	What was supposed to simplify your workflow just made it way more complicated,
1:06.8	unless, of course, you're in Notion.
1:09.0	In Notion, you can automate the tedious tasks, like summarising
1:12.5	meeting notes or finding next steps, really freeing you up to do the deep work that we all want to do.
1:18.6	And that's why Notion is used by over 50%, 50% of Fortune 500 companies and teams that use Notion,
1:25.9	send less emails, cancel more meetings and reduce
	...

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