Understanding Unit Economics for the Enterprise SaaS “Go-To-Market” Strategy
By Eric Mersch
Executive Summary The direct field-sales “go-to-market” strategy dominates in Enterprise SaaS companies serving large corporations with high value-add products requiring extensive integrations and high-touch customer service. This article discusses the unit economics of the direct field sales model and shows how it leads us to the LTV/CAC ratio. Enterprise SaaS…Read More
Read MoreSaaS Glossary: Metrics, Benchmarks and Ratios Used in SaaS Business Performance Review
By Eric Mersch
FLG Partners has consulted with many SaaS businesses – from startups to enterprise-level. Our deep CFO consulting and board advisory expertise is used to improve operational and financial performance of these SaaS entities leveraging key industry metrics and benchmarks including (but not limited to): SaaS Financial Metrics Annual Contract Value…Read More
Read MoreThe Unique Challenges of Enterprise SaaS
By Eric Mersch
There are many ways to classify SaaS companies, but differentiating companies based upon their customers presents the best approach for assessing and measuring your business. Using a customer-centric definition highlights the key operational differences that drive strategic decision making as well as the relevant key performance indicators. We typically classify…Read More
Read MoreEvaluating “Good Growth” in SaaS Companies
By Eric Mersch
As CFO strategists, we are often asked “how fast should I grow?” This is a complex question requiring detailed review of the company’s product market fit and go-to-market strategy. We use a mix of unit economics and higher-level revenue growth and profitability margins to answer this question when it comes…Read More
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