The SaaS Business Metrics

In his insightful 20-minute presentation at Web Summit, David Skok, a serial entrepreneur and founder of four companies, provides an in-depth look at the SaaS business model, emphasizing the crucial role of key metrics for success. Skok starts with Lord Kelvin's principle, highlighting the importance of measurement for improvement. He explains how small changes in metrics like Payback Period (PPR), Customer Acquisition Cost (CAC), Lifetime Value (LTV), customer churn versus dollar churn, and negative churn can significantly impact a SaaS business. Skok also discusses the importance of creating a scalable and profitable growth machine, the nuances of measuring SaaS bookings, customer happiness and retention strategies, the role of unit economics in profitability, and the effects of annual upfront payments on cash flow. This presentation is essential for understanding the drivers behind successful SaaS businesses.