Category Archives: SaaStr

Preview of my SaaStr 2021 Session: A CEO’s Guide to Marketing

SaaStr is my favorite conference and I’ll be speaking there again this year on Monday, Sept 27th at 1:00 PM Pacific with a session titled A CEO’s Guide to Marketing.  I will be doing the speech live, I’m not sure if they’re live broadcasting or not, but they will certainly record it and make it available as they have done in years past.

I chose this session title because I find that in my work with founders and C-level startup executives that people are, well, just not entirely comfortable with marketing.  I spend an increasing amount of time explaining the basics of marketing to founders and startup execs, because most of them don’t come from marketing backgrounds and too many marketing leaders either deliberately hide behind marketing complexity or are just plain not good at explaining marketing.

Either way the result is the same, and e-teams often hearken back to the old WC Fields quote when thinking about their marketing:

“If you can’t dazzle them with brilliance, baffle them with bull.”

In this fast-paced session, I’ll:

  • Explain how product founders are often surprised to find themselves running distribution business.
  • Tell you the scariest thing a CEO can and does hear in every quarterly business review (QBR)
  • Discuss the reasons why marketing is confusing and misunderstood
  • Present the 5 things every CEO and startup exec should know about marketing
  • Provide concrete actions I think companies should consider taking
  • Include “pro tips” on managing funnels and thinking about models
  • Share my “magic secret” of marketing messaging
  • Discuss CMO hiring and pillar profiles
  • Provide 3 pages of links to resources and 5 recommended marketing books in the appendix

I look forward to seeing you there!  Here’s the session link.

For a taste of my presentation style and/or to dive into my previous content, here are links to my prior SaaStr presentations:

 

Video of My SaaStr 2020 Presentation: Churn is Dead, Long Live Net Dollar Retention

Thanks to everyone who attended my SaaStr 2020 presentation and thanks to those who provided me with great feedback and questions on the content of the session.  The slides from the presentation are available here.  The purpose of this post is to share the video of the session, courtesy of the folks at SaaStr.  Enjoy!

 

SaaStr 2020 Session Preview: Churn is Dead, Long Live Net Dollar Retention!

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Reunited with old friend Tracy Eiler on the speaker page

The SaaStr Annual conference was delayed this year, but Jason & crew know that the show must go on.  So this year’s event has been rechristened SaaStr Annual @ Home and is being held in virtual, online format on September 2nd and 3rd.  The team at SaaStr have assembled a strong, diverse line-up of speakers to provide what should be another simply amazing program.

The purpose of this post is to provide a teaser to entice you to attend my session, Churn is Dead, Long Live Net Dollar Retention Rate, bright and early on Wednesday, September 2nd at 8:00 AM.

“I eat SaaS metrics for breakfast,” he thinks.  Or at least, “with.”

In this session, we’ll cover:

  • Separating a SaaS business into its two component parts
  • What makes SaaS companies so interesting for PE buyers
  • The SaaS leaky bucket of ARR
  • SaaS unit economics 101:  CAC, LTV, LTV/CAC, and CAC payback period
  • The three, fairly lethal problems with churn rates
  • Why “ARR is a fact and churn is an opinion”
  • Cohort analysis basics and survivor bias
  • Net dollar retention (NDR) rate definition and benchmarks
  • Explanatory power of NDR vs. ARR growth and the Rule of 40 in determining valuation multiples
  • The NDR implications of Goodhart’s Law
  • Applying Goodhart’s Law to NDR
  • The next frontier:  remaining performance obligation (RPO)

While the topic might seem a little dry, the content is critically important to any SaaS executive, and I can assure you the presentation will be fast-paced, fun, and anything but dry.

I hope you can attend and I look forward to seeing you there.

Number 7 on the All-Time Top SaaStr Podcasts: On the Importance of LTV/CAC

Just a quick post to say I’m honored to have made number seven on the countdown of the top ten most downloaded podcasts of all time on the SaaStr Podcast.

The podcast in question is an interview performed by Harry Stebbings of The Twenty Minute VC where we sat down to talk about the importance of the lifetime value to customer acquisition cost ratio (LTV/CAC) and why, if you could only know one SaaS metric about a company, that LTV/CAC would be it.

Of course with Harry it’s easy to end up in a wide-ranging conversation, as we did, and we thus discussed many other fun topics including:

  • How I got into enterprise software and SaaS.
  • The biggest challenge as a leader in a high-growth company (hanging on).
  • Why, for a public SaaS company, I’d probably take billings growth as the single metric, because LTV/CAC isn’t available.
  • LTV/CAC and the idea that it’s a powerful (if compound) metric that weights what you pay for something vs. what’s it worth.
  • Which churn metric to use as the basis for calculating LTV.
  • Upsell and how to design your packaging to enable both incremental upsell and major cross-sell.
  • Pricing and how to ensure your pricing is linked to at least one metric that always increases.
  • Bookings and the perils of TCV in SaaS companies, including my favorite self-quote from the podcast: “beware of Greeks bearing gifts as you would beware SaaS companies talking TCV.”
  • Multi-year deals and to what extent they should be prepaid.
  • How once, at Business Objects, we once sold a customer more licenses than they had employees (on the broader topic of vendor/customer interest alignment).
  • How sales and customer success should work together on renewals and upsells — and importance of putting farmers vs. farmers and hunters vs. hunters when it comes to competition.
  • How you can’t analyze churn by analyzing churn — i.e., gathering a list of churned customers and looking for commonalities.
  • The 90 day rule when it comes to new managers.

I hope you enjoy listening to it if you haven’t already. And for those who have, thanks for helping me make the top 10 list!

Kellblog's Greatest Hits 2016-2019 per the Appealie SaaS Awards

I’ll be speaking at the APPEALIE 2019 SaaS Conference and Awards in San Francisco on September 25th and I noticed that in their promotions the folks at APPEALIE had assembled their own Kellblog’s Greatest Hits album from 2016 to 2019, complete with its own cover art.
appealie
When I looked at the posts they picked, I thought they did a good job of identifying the best material, so I thought I’d share their list here.  They also called me “a GOAT software blogger” and after playing around with acronyms for about half an hour — maybe Groove, OpenView, AngelVC, Tunguz? — my younger son swung by and said, “they called you a GOAT?  Cool.  It means greatest of all time.”  Cool, indeed.  Thanks.
Here’s the APPEALIE Kellblog’s Greatest Hits 2016-2019 list: