Net Customer Base Expansion = (Expansion ARR - Churned ARR) which helps SaaS companies to understand how the existing customer base is impacting ARR growth excluding the impact of new logo customer ARR.

Why not just use Net Revenue Retention? CAC and Growth dive deep into this SaaS metric including:

• Calculation formula for Net Customer Base Expansion (NCBE)
• How is NCBE different from Net Revenue Retention (NRR)
• What is CAC's definition of lazy NRR
• Cohort vs Segment Calculations - what is the difference
• What is a good Net Customer Base Expansion Rate
• When and where does the Net Customer Base Expansion provide the most value

If you are responsible for impacting how ARR grows at existing customers in a B2B SaaS company - this episode may provides some new insights and maybe a new metric to add to your SaaS Metrics glossary!

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B2B SaaS Pricing models have evolved over the past few years with 67% of SaaS companies now saying they have introduced at least one element of Usage-Based Pricing. Though this benchmark does not tell the whole story of pricing, as the primary pricing model is still based upon a subscription fee per user or a subscription fee per user + a Usage-Based or Value-Based pricing variable.

During this episode, CAC and Growth cover a wide range of current pricing trends and benchmarks including:

• Subscription vs Usage vs Value vs Hybrid pricing model adoption
• Adoption of AI and the associated pricing strategies
• Impact on Growth Rates based upon pricing model used
• Utilization of "Usage CAPS" and how they are charged
• Treatment of Usage-Based Revenue when calculating ARR

If you are a student of the SaaS industry, and/or are evaluating if your current pricing model is optimized for your customers and your company's financial performance - this episode is chalked full of unique insights and thought-provoking commentary from Dave "CAC" Kellogg and Ray "Growth" Rike

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Common practice is to measure Sales and Marketing expenses as a percentage of revenue, which in the SaaS industry ranges between 20% - 60% based upon stage, growth and efficiency. CAC and Growth discuss an alternative metric which measures the ratio between Sales expenses and Marketing expenses, known as the Sales/Marketing Expense Ratio.

During this episode topics discussed include:

• Sales and Marketing expense as percentage of revenue benchmarks
• Sales and Marketing expense ratio - value and insights
• What a 2:1 Sales and Marketing expense ratio means
• What drives a changing Sales and Marketing expense ratio
• Customer Acquisition Cost Efficiency metric - CAC Ratio vs S&M Expense Ratio

If you are interested in measuring the allocation of the GTM budget between Sales and Marketing, this is a great episode and listen.

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