What is Cash Conversion Score? with Dave Kellogg, Balderton Capital
In today’s episode, Allan and Lauren talk with Dave Kellogg, Executive in Residence at Balderton Capital. Dave goes all-in on Cash Conversion Score: What’s the difference between cash conversion score, capital consumption, and the growth efficiency index? What efficiency does cash conversion score measure? Dave also why cash conversion score is important when it comes to funding and ‘leaky bucket’ metrics. “You should look at your overall capital consumption efficiency because people are going to look at it. It’s not the first thing they’re going to ask about, but as with any metric, the number matters, but the story matters more.” If you love learning about metrics, you’ll love MetricHQ, Klipfolio’s online resource for all-things metrics and KPIs: https://www.klipfolio.com/metrics/. Metrics mentioned in this episode:Cash Conversion Score: https://www.klipfolio.com/metrics/saas/cash-conversion-score Retention: https://www.klipfolio.com/metrics/saas/customer-retention-rate Churn: https://www.klipfolio.com/metrics/saas/logo-churn CAC: https://www.klipfolio.com/metrics/finance/customer-acquisition-costARR: https://www.klipfolio.com/metrics/saas/annual-recurring-revenue CAC Payback Period: https://www.klipfolio.com/metrics/saas/cac-payback-period
Why honesty is the best policy in the Modern SaaS Economy with Dave Kellogg
Dave Kellogg, is a thought-leader, advisor, director, consultant, blogger and currently the EIR at Balderton Capital. Formerly the CEO of Host Analytics, he is known as the SaaS metrics expert. In this episode, Dave shares his insight into the role of Services in scaling SaaS businesses, linking time-to-value to net retention, the 'correct mindset' for successful Professional Services and Customer Success organizations.Dave is the author of the highly regarded 'Kellblog', where he covers topics ranging from startups, metrics to venture capital and Silicon Valley. Check it out here - https://kellblog.com/ Follow Precursive on: Linkedin: https://www.linkedin.com/company/precursive Twitter: https://twitter.com/precursive Facebook: https://www.facebook.com/precursive/Youtube: http://ow.ly/RPxH50Chv9k
Dave Kellogg, serial CEO, investor, and SaaS metrics expert, shares his (provocative) tech predictions for 2022
AI and the Future of Work
Dave Kellogg, serial CEO, investor, and advisor, is a prolific blogger over at Kellblog.com. His annual predictions are a must-read for anyone in tech. This year's insights were no exception. Dave recently joined Balderton Capital as an executive in residence. His illustrious career has spanned exec stints at iconic companies like Host Analytics, Salesforce, MarkLogic, and Business Objects before it was acquired by SAP. Among other accolades, Dave’s SaaStr talks routinely rank in the top few most watched.Dave owns two dubious distinctions: in over 100 episodes, he’s one of only three repeat guests on the podcast. He’s also the biggest Grateful Dead fan we know. The two are only loosely correlated.Listen and learn:The single SaaS metric that matters most in 2022Dave's advice to innovators: "don't pave cow paths"What's different about the venture ecosystems in Silicon Valley and EuropeWhat's ahead for Web3 and blockchain in the enterpriseWhy the future of decentralized services requires centralized platformsIf 2021 was a Grateful Dead song...References in this episode:Dave's 2022 predictionsDave's favorite marketing book: They Ask You AnswerMoxie Marlinspike on Web3Anshu Sharma and the privacy vaultCausal inference wins the 2021 Nobel Prize in Economics
SaaStr 515: A CEO's Guide to Marketing with Dave Kellogg
The Official SaaStr Podcast: SaaS | Founders | Investors
No one word strikes more terror in the heart of product-, engineering-, or even sales-oriented founders and CEOs than "marketing." How to understand marketing? How to drive marketing? How to measure marketing? What to look for in a marketing leader? In this session, we'll talk about how CEOs (and other startup execs) should think about, charter, direct, and support marketing. Full video: https://youtu.be/ggUwcE600xU
Simplicity, Positioning, Sales Alignment, and the Kiss with Dave Kellogg
Yes, and Marketing
Advisor and angel investor Dave explains why marketers need to impose simplicity and breaks down the 2 types of messaging. He also shares career advice, lessons from geophysics, and the importance of the kiss.
S02E33: Dave Kellogg on the two essential SaaS metrics for a SaaS startup
The Orbit Shift Podcast
Dave Kellogg, known as the ‘Yoda of SaaS metrics,’ is our latest guest on The Orbit Shift Podcast. We talk to the SaaS veteran about🚀The two essential SaaS metrics - ARR and ARR growth🚀The importance of picking a big enough TAM🚀Importance of measuring NDR 🚀CAC vs NDR, when to use what🚀The limitations of an NPS🚀Why startups shouldn’t become metric slavesThis episode was recorded live at SaasBoomi’s annual event.Get $10,000 free credits to use Freshworks products (including the brand new Freshworks CRM packed with AI-based lead scoring, phone, email, and activity capture) by joining the Freshworks for Startups program. Click here to check eligibility. About the GuestDave Kellogg is an advisor, independent board member, consultant, and blogger at www.kellblog.com. In 2019, he was named to the Top 5 Most Respected Leaders in SaaS by the 15,000 attendees of SaaStr. He brings a balanced and uncommon perspective to enterprise software challenges, having 10+ years experience at each of the CEO, CMO, and board levels across ten different companies ranging in size from $0 to over $1B in revenues.Sign up for regular updates from The Orbit Shift Podcast.The Orbit Shift Podcast is powered by Freshworks Inc, a global SaaS company headquartered in San Mateo, California. If you enjoyed listening to this podcast, consider giving us a five-star rating on Apple Podcasts. Host and Producer - Jayadevan PKAssistant Producer - Shashwath JAudio Engineer - Rajesh Subramanian
Make Sales Easier: The Blueprints of a Marketing Titan with Dave Kellogg, fmr 3x CMO and SVP/GM at Salesforce
Demand Gen Visionaries
Key TakeawaysMost boards don’t have marketing leaders, but all boards have operators (GMs, CEOs, etc.) and successful ones have an understanding of marketing.If trends continue, more and more CMOs will become CEOsCMOs and CROs should be locked at the elbowsQuotes“I believe what separates the sales leaders from those who stay as CROs, to those who go on to become general managers or CEOs is actually an understanding of marketing.”“A key skill for any CMO is the ability to say no. Just don't say it too often. I believe both parts of that. You have to be able to say no, but you don’t want to become Dr. No, that doesn't work. So, you should have yes, no, and let's do an experiment.“The CMO should be locked at the elbow with the CRO. They should answer each other's phones on the first ring. They should have a good personal relationship. They should be aligned in meetings. One should take a bullet for the other. If one's getting shot at in the board meeting, the CMO should dive in front of the VP of sales or vice versa.” “Market vision while selling product. We market a vision to the customer that gets them excited about where we're going. Because when [customers] buy these apps, [they’re] not just buying what's on the truck today. We sell what's on the truck, but they buy into this broader vision.”“My credo has been ‘make sales easier’… I’ve built my career on it. And ironically, some of the biggest arguments I've had about that little phrase have been with sales leaders. They’ll say, ‘No, that's not what marketing's about,’ and I'm like, ‘Yeah, it is. That's why we're here.’ That's my philosophy and I’ve practiced it to the extent that it even surprises people sometimes.”“Marketing is the entire business scene from the point of view of the customer.” — Theodore Levitt, Former HBS Marketing professorSponsorDemand Gen Visionaries is brought to you by Qualified.com, the #1 Conversational Marketing platform for companies that use Salesforce and the secret weapon for Demand Gen pros. The world's leading enterprise brands trust Qualified to instantly meet with buyers, right on their website, and maximize sales pipeline. Visit Qualified.com to learn more.Follow Ian on TwitterConnect with Ian on LinkedInFollow Dave on TwitterConnect with Dave on LinkedInDave’s blogDave’s podcastwww.caspianstudios.com
B2B SaaS Metrics with the Master - Dave Kellogg @kellblog
Metrics that Measure Up
B2B SaaS Metrics are talked about in board meetings, investor diligence, executive team meetings, and recently across every corner of the internet from industry influencers and thought leaders.As the host of the Metrics that Measure Up, I was thrilled that I could speak with Dave Kellogg, one of my long-term follows, and a master of all things B2B SaaS metrics.Dave is a multiple-time, CEO and Chief Marketing Officer of B2B Software and SaaS companies, and a highly sought after advisor, board member and speake.During this episode, we discuss the top five metrics that Dave advises every B2B SaaS founder and CEO to calculate and they include:✔ Committed ARR (CARR)✔ Committed ARR Growth✔ Net Dollar Retention Rate (NDR)✔ Net Promoter Score (NPS)✔ Employee Net Promoter Score✔ BONUS METRIC - Customer Acquisition Cost Ratio (CAC Ratio)Next we discussed why Net Dollar Retention (NDR) is a less fungible metric than "Churn". One example of "gaming" churn is to include all customers, including multi-year deals in annual churn calculation. Survivor bias is one caution for NDR, where a company will look at a cohort of customers today and look at how much ARR they represented a year ago - which is not a best practice for NDR calculation.The next thing we discussed is which metric(s) have the highest impact on Enterprise Value to Revenue multiples. Traditionally Rule of 40, and company growth rate were the two highest impacting metrics to enterprise value. I suggested to Dave that we are seeing NDR having a much higher impact on EV, and in real-time, Dave calculated the R^2 of NDR which was .35, and three times more causal impact on EV than growth!The other item we discussed was "selection bias" which happens when you look at the public B2B SaaS/Cloud company's metrics, and target their metrics as the benchmark. It's important to remember that these are the BEST of the BEST, and many SaaS metrics will look much better at scale (> $250M) and in those companies that were able to go IPO.We also discussed how some metrics, even something as seemingly simple as "Win Rate" can be miscalculated. Dave has seen several companies take the number of opportunities at the beginning of the accounting period, dividing that into the # of closed-won deals, without considering that many of the opportunities that are still open will close in subsequent accounting periods.Dave once wrote a blog entitled "Don't be a Slave to Metrics". A couple of pithy, and easy-to-remember quotes included: "Metrics work for us, we do not work for the metrics" and " Metrics reflect strategy - they do not drive strategy".If you are just learning B2B SaaS metrics or are a seasoned SaaS metrics veteran, this episode is a must-listen for anyone responsible to led a SaaS company and/or calculate and present your top-level performance, company value-creating metrics.
Season A - Ep. 1: Dave Kellogg on VC and PE investments in SaaS companies
Dave Kellogg returns to SaaShimi to share his experience working with Venture Capital and Private Equity firms. He compares VC's and PE's investment approaches, due diligence processes, and roles in a boardroom among other things.Dave Kellogg's BioDave Kellogg is a technology executive, investor, advisor, and blogger (if you don't read www.kellblog.com, you should start after you are done with SaaShimi!).Previously, he held CEO positions at Hostanalytics and MarkLogic, and prior to that SVP/GM of Service Cloud at Salesforce and CMO at Business Objects.Dave has worked in varied capacities with companies including Breeze, GainSight, MongoDB, and Tableau. He currently sit on the boards of Alation, Nuxeo, and Profisee. Dave previously sat on the boards of agtech leader Granular and big data leader Aster Data (both got acquired).SIGN UP at https://www.saashimi.cloud to receive transcripts of the interviews and news about upcoming guests and events.