You Can't Fix a CAC Payback Period: The Operator vs. Investor View of SaaS Metrics

You Can’t Fix a CAC Payback Period - Operator vs. Investor Perspective on SaaS Metrics.pptx

The presentation discusses:

• The ways VCs can use metrics in discussions with founders and CEOs.
• A deep dive into CAC payback period (CPP) itself, how it’s defined, what it measures, and how its often “corrected.”
• How investors like compound metrics (e.g., CPP, Rule of 40) whereas operators are best focused on atomic metrics — e.g., you should set accountability and OKRs around atomic metrics.
• How some metrics are stealthly more compound that you might think — e.g., CAC based on net-new ARR or gross profit (or both).
• Why I like to say, “you can’t fix a CAC payback period.” It’s a compound metric which can be driven by at least 5 different factors.
• How to apply my observations to everyday SaaS life.