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Welcome

Let's take a look at our compelling, yet easy-to-use Lean-Case dashboard. In a few minutes, you can analyze the unit economics of your business case to understand its short- and long-term viability with traffic-light indicators. We illustrate each step in creating your case with examples.

Please meet Sarah and John: they work for Test Ltdani. - a B2B SaaS company going to market with its own direct sales force targeting enterprises in the U.S.

First step: Create a customer segment for your sales model

You start off every Lean-Case by defining a customer segment. You target this segment with your chosen sales model (e.g. direct sales). A Sales Unit represents the smallest part of this sales model.

Test Ltd. sells to enterprise customers. It targets this segment with a Direct Sales model. Sarah and John are working as team - Sarah being a Sales Rep, John being a Sales Engineer. They are jointly making up a Sales Unit.

Second step: Input your numbers

The Lean-Case Dashboard provides all relevant metrics for a single Sales Unit. It has 3 input areas to enter your assumptions and 3 result areas to check the viability of the case.

Input areas capture:
Sales Unit Metrics to capture the cost and quota of your Sales Unit
Average Deal Metrics to calculate the Average Contract Value
Customer Lifecycle Metrics to record the profitability of the customer's life
Result areas show:
Key Deal Metrics characterizing an Average Deal
Key Unit Metrics describing key customer metrics
Key Viability Metrics showing the short-term and long term viability

Find meaningful help and benchmarks

Use the icons next to each metric.

Edit Icon - to change the metric values
Info Icon - get definitions,tips and examples
Benchmark Icon - to browse benchmark data and make meaningful assumptions

You will become a SaaS expert in no time using our benchmarks!

Input 1/3: Sales Unit Metrics

Enter the yearly cost and sales quota of a single Sales Unit.

The total cost-to-company of Sarah and John is made up of their Base Compensation, Variable Compensation and Additional Cost. They have an annual target to achieve which is measured in Target Annual Bookings.

Input 2/3: Average Deal Metrics

Input all parameters related to your service tiers to calculate the average Annual Contract Value.

Customers of Test Ltd. can select a Startup or Entreprise Plan, i.e. Test Ltd has 2 service tiers. 80% of deals are Startup deals with 5 users at a monthly price of $100 and 20% Enterprise Plan deals with an average of 5 users at a monthly price of $200.

Use the specific info manuals available for Average Deal Metrics.

Input 3/3: Customer Lifecycle Metrics

Last input! Capture all metrics relevant to a customer during his lifecycle: converting a Lead into a Paying Customer and then keeping and growing him.

To fill the sales pipeline for Sarah and John with enough leads, Test Inc. spends $20 per lead. Sarah and John convert 1.0% of those leads into paying customers. They manage to grow the revenues of a customer by 1.5% per month, but 2% of customers also churn away per month. From a profitability perspective, recurring revenues are delivered at a Gross Margin of 70%, Professional Services at a Gross Margin of 20%.

Use the specific info manuals available for Customer Lifecycle Metrics.

Results 1/3: Key Deal Metrics

Now let's take a look at the results.

The Key Deal Metrics summarize relevant deal-related metrics such as the Deals to Meet Monthly Target.

To Close one deal, the selling cost (the cost for Sarah and John) is $1,368 and the cost to generate leads for that deal is $2,000. In order to meet their monthly target, Sarah and John must close 7.3 deals per month. Given the conversion rate, the Cost of Leads Required (to meet the monthly target) is $14,620

Results 2/3: Key Unit Metrics

The Key Unit Metrics summarize the relevant customer key metrics: the Lifetime, Lifetime Value (LTV) on a total and annualized base and Customer Acquisition Cost (CAC).

With a churn rate of 2%, the Customer Lifetime averages 50 months. Selling Cost, Cost of Leads and Partner Commission add up to a Customer Acquisition Cost of $3,436. At a Gross Margin of 70% of the Average Annual Contract Value, the Lifetime Value of a Customer is $19,950. On a 12-months basis, the Annualized Lifetime Value equals $4,788.

Refer to the info manuals for definitions.

Results 3/3: Viability Metrics

The Viability Metrics give you traffic-light indication for your case.

The short-term indicator Months to Recover CAC defines how fast you recover the CAC (ideally faster than 12 months).

The long-term indicator LTV/CAC shows how many times the LTV exceeds the CAC (ideally more than 3 times).

Get started and enjoy!

This is truly a lean way to understand the viability of your business case.

You can now get started to build your own case! To learn how to put your case together and share it with colleagues and investors, visit the menu items on the left side from top to bottom.

Get started and enjoy!

This is truly a lean way to understand the viability of your business case.

You can now get started to build your own case!

To learn how to put your case together and share it with colleagues and investors, visit the menu items on the left side from top to bottom.

Sales Unit Metrics Edit

Average Deal Metrics Edit

6,840
Annual Contract Value

Customer Lifecycle Metrics

Cost Per Lead
Pipeline Stages
10%
40% Complete
Lead
20%
40% Complete
Opportunity
50%
40% Complete
Trial
Lead Conversion
1
Paying Customer
1%
Conversion Rate
Churn & Expansion
2%
Churn
1.5%
Expansion
Gross margin
70%
Recurring Revenue
20%
Professional Services

Key Deal Metrics