Customer Success

SaaStr Podcast #142: Dave Kellogg, CEO @ Host Analytics On Why CAC/LTV Is The Most Important Metric In SaaS

Harry Stebbings

 

Dave Kellogg is the CEO @ Host Analytics, the leader in cloud-based enterprise performance management (EPM). Previously, Dave was SVP/GM of Service Cloud at Salesforce and CEO at unstructured big data provider MarkLogic. Before that, Dave was CMO at Business Objects for nearly a decade as the company grew from $30M to over $1B. Dave has also worked in various capacities with the likes of Breeze, GainSight, Tableau, and MongoDB, and previously sat on the boards of ag tech leader, Granular (acq by DuPont for $300M)  and big data leader Aster Data (acquired by Teradata for $325M).

In Today’s Episode You Will Learn:

* How Dave made his way into the world of SaaS with Salesforce, came to be CMO at Business Objects and now running his own SaaS company as CEO at Host Analytics?

* What does David believe is the single most important metric in SaaS? How should SaaS companies structure the first four lines of their financial statements? Why is retention and renewal not always an accurate sign of customer satisfaction?

* How does Dave look to analyze churn? What is the post-mortem? What is more important, logos or expansion? If a startup’s churn is too high, what are the top 3 things they should do? Why must you have a “standard taxonomy” for churn? How can you construct this?

* How does David think about taking existing customer and up-selling them? How does he view this in contrast to cross-sell? Does Dave agree with David Skok on the need for more than 1 variable pricing mechanism? Why does Dave not encourage usage based pricing?

* How does Dave analyze the benefits of multi-year contracts paid upfront? How does this distort TCV and inflate the figures? Does upfront payment misalign the provider and the consumer, in terms of care and support? With that in mind, how does David view billing frequency? Contract durations?

60 Second SaaStr

* What does Dave know now which he wishes he had known at the beginning?

* What is the 90 day rule? Why is it important?

* How much ARR should a good sales rep add in relation to comp?

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Jason Lemkin
Harry Stebbings
SaaStr
Dave Kellogg

Published on September 15, 2017
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