Solving The Value Equation

Marketing during a downturn

The brutal fact is we’re still in a market downturn, and we may be for a while. Rather than fight it, embrace it. Great brands are built in down markets.

To help you find your way, The Starr Conspiracy is offering a fireside chat series for the month of December on how to win with CX during the downturn. We’ll be talking to Work Tech pros who made big moves during the last downturn to get their perspectives on what to do today.

FYI: The marketing in a downturn webinar will answer the following questions

• How to market HR Work Tech in 2023
• How to re-allocate marketing and sales spend in 2023

Hope you can join us!

Webinar registration at

https://secrets.thestarrconspiracy.com/marketing-during-a-downturn-fireside-chat-series?

Webinar replay podcast link at

https://tinyurl.com/WorkTechMarketinginadownturn

Sources & Uses Planning for 2023: Budget & Spend Management Considerations

For many institutional investors, the #1 priority for growth firms has shifted from revenue sales growth to capture market share at all costs to longer-term metrics such as R-Value and NRR.

• R-Value is the percentage of combined profitability and growth rate (practically calculated as YoY growth + adjusted EBITDA profitability).
• Gross Profit Net Revenue Retention (GPNRRR) is the percentage of ross profit recurring revenues retained from existing customers over a period of time (practically calculated as the gross profit from the recurring revenues for the existing customers after accounting for churn and revenue adjustments year-over-year).

As you plan for 2023 consider the following:

R-Value Impact on Valuation for B2B firms with North America HQs

Key takeaway: Determine your R-Value growth by each industry vertical, each product and by cueach stomer persona and plan S&M programs and spend accordingly.

Supporting resources about Value driven by planning around R-Value include:

1. OpenView – SaaS Benchmarks Report
2. SaaS Capital – 2022 SaaS Company Growth Rate Benchmarks
3. TSC – marketing in a downturn fireside chat series
4. Forbes – Don’t pull the plug, shifting marketing in an economic downturn

 

2022 OpenView SaaS Benchmarks Report

Valuation driven by R-Value

If you can achieve 120% NRR: Your revenue doubles in 5 years even with no new customers

SaaS Capital Benchmarks

Value based Revenue Multiple Range of Value for private B2B tech-enabled and SaaS