VSaaS Performance
How do you know it's working?
The Focus Matrix
Score opportunities before committing resources:
| Dimension | Question | Score 1-5 |
|---|---|---|
| Product Fit Score | Hair-on-fire problem? Clear wedge? | |
| TAM Score | Can you get 50%+ market share? | |
| CAC Payback | Less than 12 month payback achievable? | |
| Win Rate | Winning 30%+ of competitive deals? |
Interpretation:
- All 4s or 5s → Scale aggressively
- Any 2 or below → Fix before scaling
- Mixed 3s → Investigate, don't assume
Annual Contract Value
ACV Tiers and What They Mean
| ACV Range | Customer Type | Sales Motion | Metric Focus |
|---|---|---|---|
| Under $1K | Self-serve SMB | PLG | Activation, expansion |
| $1K-$10K | Assisted SMB | Inside sales | CAC, velocity |
| $10K-$50K | Mid-market | Field sales | Win rate, deal size |
| $50K-$250K | Enterprise | Strategic | Land, expand, renew |
| $250K+ | Large enterprise | Named accounts | Multi-year, platform |
Monopoly Math
Revenue expands when you own the transaction:
TAM (software only) = Industry × Software Spend
TAM (with payments) = Industry × Transaction Volume × Take Rate
Example: Restaurants
├── Software TAM: $10B
├── Payment TAM: $100B (10x)
└── Toast revenue: 83% payments, 17% software
KPIs by Evolution
Early Stage (Pre-PMF)
| Metric | Target | Why It Matters |
|---|---|---|
| Pilot conversion | >50% | Product works |
| Time to value | Under 30 days | Easy to adopt |
| NPS | >50 | Word of mouth |
| Expansion in pilots | >30% | Land and expand works |
Growth Stage (Post-PMF)
| Metric | Target | Why It Matters |
|---|---|---|
| Net Revenue Retention | >110% | Expansion > churn |
| CAC Payback | Under 12 months | Unit economics |
| Win rate | >30% | Competitive positioning |
| Logo churn | Under 10% annually | Sticky product |
Scale Stage
| Metric | Target | Why It Matters |
|---|---|---|
| Gross margin | >70% | Operating leverage |
| Rule of 40 | Growth + margin >40% | Balanced growth |
| Market share | >30% of ICP | Path to monopoly |
| Payment attach | >50% of customers | Revenue multiplier |
Segment Scoring
Not all customers are equal. Score them:
| Factor | Weight | High Score | Low Score |
|---|---|---|---|
| Revenue potential | 30% | $100K+ ACV | Under $10K ACV |
| Logo value | 20% | Industry leader | Unknown |
| Implementation ease | 20% | Standard workflow | Heavy custom |
| Expansion potential | 20% | Multi-product | Single use |
| Reference potential | 10% | Will advocate | Won't talk |
Use for: Prioritizing pipeline, allocating CS resources, deciding custom work.
The Henry.ai Benchmark
What "good" looks like in PropTech VSaaS:
| Metric | Before | After |
|---|---|---|
| Time per deal deck | 4-8 hours | 10 minutes |
| Deals per analyst | 2-3/week | 10-15/week |
| Pricing | ~$15K/year | ROI in first mandate |
Why it works:
- Single painful workflow (deck creation on every deal)
- Clear ROI metric (hours saved → more deals closed)
- Founder-market fit (built by analyst who lived the pain)
- Data exhaust (templates = switching costs)
Evidence Loop
After launch, close the loop:
SHIP
↓
MEASURE (What happened?)
↓
COMPARE (vs. expectation)
↓
DIAGNOSE (Why?)
↓
ITERATE (What changes?)
The discipline: Define success metrics BEFORE launch, not after.
Context
- VSaaS Principles — Strategic truths
- VSaaS Protocols — Implementation playbook
- Performance — How you know it's working
- Standards — Benchmarks and targets