I recently gave a presentation at SaaSBoomi, an India-based SaaS founder community, which was structured as an interview by Evangelist at Freshworks for Startups, Jayadevan P K (aka, JPK).
In the interview I answer the following questions:
- How do you look at ARR (Annual Recurring Revenue) and its relation to the valuation of a company?
- What else is a company’s valuation dependent on?
- You place a lot of importance on NDR (Net Dollar Retention). Why is that?
- What’s a good way to look at NDR for early-stage companies? Anything below 100 is bad, but what’s a good thing?
- Talk to us about NPS (Net Promoter Score). Why is it important? When should you start tracking it? And what are some of the pros and cons of tracking NPS?
- Talk to us about the culture of metrics. What are some of the best practices, and what are some things you should avoid while tracking metrics?
- What’s your view on churn? What’s healthy? Any benchmarks that you can talk to us about?
- Do you take into account all marketing spend in CAC or only cost for campaigns that worked? Do you exclude the experimental campaigns from CAC?
- What’s a good way to follow your work? (Hint: Twitter and the blog)
Both an audio version and transcript excerpts are available here. The session is packaged as an episode of The Orbit Shift podcast.