Dear Reader,
Welcome to the 31st edition of the good reads newsletter by Malpani Ventures. Sharing your weekly dose of articles for this weekend’s reading!
How much should I be spending on acquiring customers?
Data driven blog with good pointers on CAC Payback and LTV:
A low CAC Payback allows you to fund your growth through customer revenues whereas a high CAC Payback will push you toward growth through VC dollars. Neither situations are right nor wrong, but you have to find your path or take the path available to you
The reason both these metrics should be used together is that they form 2 critical parts of your scaling engine.
CAC Payback: Represents the cash efficiency of spend to acquire these customers
LTV / CAC: Represents the margin efficiency of an investment to acquire customers (ROI)
Do you stack up?
Open View released updated benchmarks for SAAS companies to track their performance:
Keep an eye 👀 on Heap
Detailed deep dive on Heap, a near-unicorn, analytics infrastructure company which helps companies use data meaningfully.
Heap gives you two weeks to fall in love – and they wine and dine you through it too.
Heap does the opposite of transparent pricing, which works wonders for them. Its hybrid model of product-led self-serve and sales assistance helped ensure they're able to capture value with every sale.
Until next time !