Justifying investment in customer success is far harder than justifying spend in sales and marketing. In episode #350, Ben walks through a practical framework for evaluating the ROI of customer success and retention programs by tying customer success investment directly to ARR, MRR, and revenue retention performance. Instead of relying on vague qualitative benefits, this episode outlines how finance and SaaS leaders can quantify retention improvements and translate them into real financial impact.

Resources Mentioned

Blog post on quantifying customer success and retention ROI: https://www.thesaascfo.com/quantifying-investments-in-customer-success-and-retention/

SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation

What You’ll Learn

• Where customer success should be classified on the SaaS P&L (COGS vs. Sales)
• Why customer success ROI is harder to quantify than CAC or go-to-market efficiency
• How to use MRR and ARR waterfalls as the foundation for retention analysis
• The difference between gross revenue retention and net revenue retention in ROI modeling
• How expansion, contraction, and churn act as independent levers in retention
• A scenario-based approach to estimating ARR impact from retention improvements

Why It Matters

• Helps justify customer success spend with real revenue and ARR impact
• Improves financial modeling and long-term financial strategy decisions
• Connects retention performance to unit economics and scalability
• Avoids over-investing in customer success without measurable outcomes
• Provides a clearer framework for board and investor discussions

Many SaaS teams try to use their CRM to report ARR and MRR, but this creates serious risks—especially in forecasting, retention analysis, and due diligence. In episode #349, Ben explains why your CRM is rarely the correct source of truth for recurring revenue and where ARR should actually come from to ensure financial accuracy and credibility with investors and acquirers.

Resources Mentioned

• How to Disclose ARR: https://www.thesaascfo.com/cfos-guide-to-disclosing-headline-arr-numbers/
• Ben's SaaS Metrics Course: https://www.thesaasacademy.com/the-saas-metrics-foundation

What You’ll Learn

• Why CRM-based ARR reporting is often inaccurate and easy to break
• The difference between bookings data and revenue-based ARR
• What qualifies as a true source of truth for ARR and MRR
• How invoicing, revenue recognition, and the general ledger fit together
• Why CRM-reported ARR frequently fails under due diligence scrutiny
• When (and only when) a CRM can be trusted for recurring revenue metrics

Why It Matters

• Prevents misleading ARR, MRR, and revenue metrics
• Ensures your financial systems can support investor and buyer diligence
• Reduces risk when calculating retention, CAC payback, and unit economics
• Improves confidence in Board reporting and long-term financial strategy

In episode #348 of SaaS Metrics School, Ben Murray responds to a thoughtful LinkedIn comment that challenged a common assumption: that a well-structured SaaS P&L tells the whole story. While a properly built chart of accounts and SaaS P&L are foundational, Ben explains where hidden risks can still exist beneath clean financial statements.

Using real-world examples from SaaS founders and finance teams, this episode explores how revenue commingling, misclassified expenses, role overlap, and customer concentration can quietly distort decision-making—despite an “immaculate” P&L.

Resources Mentioned

• LinkedIn SaaS P&L Post: https://www.linkedin.com/posts/benrmurray_saas-activity-7418308514533552128-l2eG/
• SaaS P&L Blog Post:
• SaaS Metrics Course:

What You’ll Learn

• Why a clean SaaS P&L can still hide structural business risk
• How revenue commingling and miscoding undermine financial clarity
• When and how to reclass employee costs across departments
• Why materiality matters more than perfection in early-stage accounting
• How customer concentration risk often surfaces late in due diligence

Why It Matters

• A SaaS P&L is only as useful as the assumptions behind it
• Poor expense classification can distort margins and unit economics
• Misunderstanding departmental cost ownership leads to flawed decisions
• Customer concentration can materially impact valuation and investor confidence
• Strong financial systems require both structure and experienced oversight