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    Business

    The Metrics Brothers

    The Metrics Brothers is hosted by Dave “CAC” Kellogg and Ray “Growth” Rike. The Metrics Brothers provides unique insights, strategies, tactics, and metrics that are relevant to AI-Native software and SaaS companies.

    Each 25-30 minute episode will cover a topic critical to leading a B2B software company, and chock-full of practical advice that can be introduced and applied in most Native-AI, Agentic AI, and B2B software and SaaS companies.

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    Latest Episodes:
    Net Revenue Retention Sep 21, 2023
    Show notes

    Dave "CAC" Kellogg and Ray "Growth" Rike continue their discussion on the importance of measuring revenue retention. This week they cover Net Revenue Retention (NRR) - a top three B2B SaaS Metric. '

    During this episode they cover many aspects of how to calculate and use Net Revenue Retention including:

    • Cohort method versus formula method
    • The impact of Usage-Based Pricing on the NRR calculation
    • NRR benchmarks using a Good, Better, Best framework
    • Ideas on how to optimize and increase NRR


    In addition, Dave and Ray answer three audience submitted questions - fulfilling their goal to address the questions that the B2B SaaS industry has about everything SaaS!

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Klaviyo S-1 Metrics Breakdown Sep 14, 2023
    Show notes

    On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss four SaaS metrics from the Klaviyo S-1 including:

    • Annual Recurring Revenue (ARR)
    • CAC Payback Period
    • Gross Revenue Retention (GRR)
    • Net Revenue Retention (NRR)


    This conversation covers many of the nuances of SaaS metrics and uncovers the lack of a standard way that even the best companies define and calculate SaaS metrics

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Gross Revenue Retention Sep 05, 2023
    Show notes

    On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Gross Revenue Retention (GRR), aka Gross Dollar Retention (GDR), and the different nuances to consider when calculating this metric.

    In addition, Dave and Ray discuss why this metric is important, how to calculate GRR and how to use the results to inform decision making.

    The Metrics brothers discuss the following nuances of calculating Gross Revenue Retention

    • The definition of GRR
    • Cohort vs Formula Method
    • What to exclude and include in GRR
    • How is GRR impacted by Product Led Growth and/or Usage-Based Pricing environments
    • How does Churn and GRR compare...are they the same thing?
    • GRR vs NRR - which is most important?


    If you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the nuances to consider when calculating Gross Revenue Retention

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Customer Lifetime Value - It's not that simple - SaaS Talk with the Metrics Brothers Aug 21, 2023
    Show notes

    On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss Customer Lifetime Value, and the different input variables required to calculate this compound, multi-variable metric.

    The Metrics brothers discuss the following nuances of calculating Customer Lifetime Value

    • The basics - CLTV or LTV
    • Revenue or Gross Profit
    • Which number to use for churn in the formula (GRR, Logo Churn, all ARR or only available to renew ARR)
    • Which number to use for the Average Revenue Per Account (ARPA) - new customers only or all customers


    If you love the nuances and details of SaaS Metrics - this is a thought provoking episode that highlights the important of gaining alignment of the CLTV and CAC metrics in your B2B SaaS company

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Usage-Based Pricing and CAC - The calculation impact is significant Aug 15, 2023
    Show notes

    On this episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss in detail how Usage-Based Pricing (UBP) impacts the calculation of Customer Acquisition Cost and it's efficiency derivatives including CAC Ratio and CAC Payback Period.

    They discuss the three primary different types of Usage-Based Pricing Models including:

    • Pure usage-based or consumption-based pricing with no minimum commitments
    • Minimum commitment agreement that includes up to #x units and then overage $/unit over the minimum
    • Annual Subscription agreement to the platform and a $/unit of usage in addition to the annual subscription


    Each of the above models can impact what is consider Annual Recurring Revenue (ARR), Variable Recurrring Revenue (VRR) and/or pure variable revenue - and that will accordingly impact the CAC efficiency metric calculation methodology.

    If you love the nuances and details of SaaS Metric and how emerging GTM models impact traditional metrics calculations - this episode is for you!

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Product Led Growth and the impact on Customer Acquisition Cost Aug 01, 2023
    Show notes

    The Metrics Brothers discuss how Product-Led Growth (PLG) including the use of Freemiums and/or Free Trials impacts the Customer Acquisition Cost (CAC) calculation. Each PLG model may have different times to value, conversion rates to paid users, different definitions of when a free user becomes a customer which all can impact the CAC calculation formula and the resultant usefulness of the metrics

    During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss CAC Payback Period, and provide a little entertainment along the journey to using CAC Payback Period in your SaaS company.

    Summary

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    CAC Payback Period Jul 26, 2023
    Show notes

    The Metrics Brothers discuss the use of Customer Acquisition Cost Payback Period (CAC Payback Period). On the surface CAC Payback Period (CPP) is easy to understand, yet in practice there are many nuances and considerations such as using Gross Margin in the CPP calculation, and if CAC Payback Period is an efficiency, risk or return metric.

    During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss CAC Payback Period, and provide a little entertainment along the journey to using CAC Payback Period in your SaaS company.

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Advanced Customer Acquisition Cost (CAC) Jul 18, 2023
    Show notes

    The Metrics Brothers discuss advanced topics and uses of Customer Acquisition Cost (CAC) and the CAC Ratio. On the surface CAC and CAC related metrics appear easy to understand, yet in practice there are many nuances, considerations and approaches to optimize the insights provided by CAC.

    During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss those advanced topics, and provide a little entertainment along the journey to using CAC in your SaaS company.

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    CAC and CAC Ratio Jul 11, 2023
    Show notes

    The Metrics Brothers discuss Customer Acquisition Cost (CAC) and the CAC Ratio. The two metrics are closely related, yet are fundamentally two very different SaaS metrics.

    During this weeks episode, Dave "CAC" Kellogg and Ray "Growth" Rike discuss the value of each metric, when to use them and how to calculate each metric.

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


    Pipeline Financial Return Measurements Jul 04, 2023
    Show notes

    How do B2B SaaS leaders measure the financial returns on pipeline generation?

    On the surface this question may seem quite simple, but one with that presents several options, especially when considering how a CFO evaluates return on investment.

    The Metrics Brothers, Dave "CAC" Kellogg and Ray "Growth" Rike dive deep into the nuances and considerations of pipeline returns on this week's episode of SaaS Talk™ with the Metrics Brothers.

    See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.


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