Baremetrics

AUGUST 16, 2021

What does it mean to reactivate a subscription? There are several reasons a customer would cancel their subscription. It could be that the customer got no return on investment, had technical difficulties, or they may have canceled because they achieved their set goal. Table of Contents. What is reactivation MRR?

Subscription 87

Subscription Payment Features Metrics SaaS Payments 87

FastSpring

MAY 14, 2019

However, our expectations for the quality of the software continue to grow and outpace any current investments. Here’s how your company can benefit from switching from a perpetual license to a subscription plan. Reason #1: Subscriptions support product innovation. Reason #1: Subscriptions support product innovation.

Payment Features 68

Payment Features Payment Methods Subscription Payment Services 68

SaaStr

SEPTEMBER 19, 2023

The right-hand graph shows that deal count and overall investments have fallen. This is where traditional SaaS methods like subscription pricing only, driving growth through headcount only, or a pure sales GTM strategy only live. PLG is about investing in product and data instead of sales and marketing.

Business Model 272

Business Model SaaS Payments Payments Headcount 272

Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

SaaSOptics

MAY 19, 2022

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. For subscription-based SaaS businesses, your customer acquisition metrics indicate how effectively you acquire new users via sales, marketing, or a product-led approach like a free trial. Plain and simple.

Acquisition 59

Acquisition Scale Strategy Software Review 59

Clouded Judgement

JANUARY 12, 2024

It’s better to come to that realization today than grinding for 2 more years only to realize it then when your cash balance has dried up and all of a sudden you have no leverage in an acquisition. An acquisition at $200m can be life changing for founders, or it can be worth nothing if they raised $250m at $1B valuation back in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

FastSpring

DECEMBER 20, 2018

What’s the story with subscriptions? If your digital business is just getting off the ground, subscriptions can be a lifesaver. Thanks to heavy up-front customer acquisition costs, SaaS startups often struggle with cash flow issues until they recover their initial investment.

Payment Features 63

Payment Features SaaS Payments Subscription Payment Solutions 63

Sixteen Ventures

AUGUST 14, 2022

You want NRR to be over 100%, because that means – in theory – you could turn off new customer acquisition and the company wouldn’t just continue to generate revenue, but would actually grow. Why they’re investing in you. If you added more than you lost, you will have “retained” greater than 100%. Four Ways to Improve NRR.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

FastSpring

SEPTEMBER 24, 2020

Revenue refers to the total earnings a company generates through its core operations like sales of products or services, rents on a property, recurring payments , interest on borrowings, etc. Capital gains, interest earned on investments, sales of assets, or other miscellaneous earnings are not considered revenue.

Payments 83

Payments Payment Methods Payment Features Payment Services 83

Baremetrics

MARCH 7, 2021

Read what you should know about subscription management and why it is important in recent times! Many products and services online are beginning to adopt subscription-based systems for their billing processes. Apart from the recurring revenue, subscription billing systems also offer appreciable stability to businesses.

Payment Features 45

Payment Features Merchant Services Payment Methods Payment Solutions 45

ChurnZero

SEPTEMBER 16, 2022

When a financial slowdown approaches, the smartest businesses look for areas where their investment has the best leverage. In good times, a lot of investments that a company makes are really focused on new sales. Talent acquisition is way more interesting and way better. Episode highlights. Deals take longer and longer to close.

Customer Success 98

Customer Success Investment Churn Retention 98

SaaStr

SEPTEMBER 12, 2019

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth?

Investment 101

Investment Underperforming Technical Team Sales Hiring Software Review 101

Neil Patel

APRIL 12, 2021

They offer some of the best-known subscription boxes around, reflecting an increasingly popular (and potentially lucrative) business model. Why Should You Launch a Subscription Box? According to MarketsandMarkets , the subscription and recurring billing market will grow to around $7.8 Recurring Business Revenue.

Outsourcing Services 123

Outsourcing Services Payment Methods Subscription Payment Features 123

Andreessen Horowitz

APRIL 23, 2024

So unless there’s some really obvious or transformative thing to do in your business today, it’s worth waiting a little bit to invest heavily in that. We’re experimenting with it, but we haven’t made a massive investment. Alex: The other side of the equation on customer acquisition is monetization.

Payments 111

Payments Forecasting Payment Services Payment Solutions 111

Subscription Flow

APRIL 18, 2024

In such a scenario, what subscription-based businesses like these dating apps usually do is they redirect their energies into improving their customer lifetime value by reworking their customer engagement model. How Important is Subscriber Engagement for Subscription-Based Businesses? It is measured using various metrics.

Engagement 87

Engagement Customer Lifetime Value Revenue Subscription 87

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period. The result is your average CAC.

Acquisition 63

Acquisition Retention Social Media Advertising 63

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Marketing? .

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Know your numbers.

Acquisition 52

Acquisition Startup Technical Review Scale 52

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 101

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 101

Clouded Judgement

APRIL 11, 2024

At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC. Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford.

Cloud 177

Cloud Software Azure AWS 177

ProfitWell

JUNE 27, 2019

From CRM software to coffee beans, shaving blades to designer gowns, recurring billing is the lifeline for every subscription business. It’s easy to see why—automatic charges for subscriptions are simple and convenient for customers and predictable and sustainable for companies. What is recurring billing?

Merchant Services 76

Merchant Services Payment Features Payments SaaS Payments 76

Baremetrics

APRIL 6, 2021

ProfitWell is a cloud-based app that generates real-time financial and subscription metrics for data-driven SaaS enterprises. The recurring revenue growth platform provides users with valuable insights into subscription funnels and one-click analytics for Stripe. But ProfitWell does not benefit all SaaS companies.

SaaS Payments 93

SaaS Payments Payment Services Payments Payment Solutions 93

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? At the same time? The product becomes your sales team.

Scale 286

Scale Sales Hiring Sales Marketing 286

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. We sometimes hear companies call themselves “SaaS” companies, because they sell subscriptions, but they do not host software. In addition, it affects cash flow. It changes sales and marketing organizations and their execution.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. As many of these channel partners move to newer distribution models, the brokerage channel model in particular, they represent an efficient and leveraged customer acquisition channel.

Outsourcing Services 111

Outsourcing Services SMB Acquisition Scale 111

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

User Pilot

APRIL 29, 2024

A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. The renewal rate is calculated as the number of customers who renew their subscription divided by the total number of customers up for renewal at any given period.

SaaS Payments 87

SaaS Payments Business SaaS Payment Solutions 87

Clouded Judgement

MARCH 22, 2024

And once a customer has paid back the initial acquisitions costs to acquire it, all future streams of revenue can loosely be described as a cash flow annuity. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Securities and Exchange Commission.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

JANUARY 24, 2024

From an R&D perspective, they invested in what they called vertical solutions to support those new use cases. So, Calendly decided to invest in going Enterprise. From a process standpoint, you have to be ready to invest in Enterprise sales and build infrastructure to make sure sales can be successful. The result?

Scale 249

Scale Sales Hiring Scaling Revenue 249

Clouded Judgement

APRIL 5, 2024

” Acquisitions become tougher because the preference stack is higher. They’re playing an option value game, where each investment is treated as a deep out of the money call option. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 161

Cloud Scale Pricing Revenue 161

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. That way, they know what growth to expect and what incremental uplift they’re getting from having sales involved so they can continue to make better investments. The first might be market acquisition. The lines will blur.

Compensation 169

Compensation Sales Azure AWS 169

SaaStr

JANUARY 15, 2021

R&D) … and that ballooned to as much as 44% under SAP (re-investing in product) … and now has come down to 31% as the company marches again to being a stand-alone company. There are a lot of mini-lessons here on the ability to invest when you don’t have to worry about being public, etc.,

Enterprise 280

Enterprise Scaling Investment Revenue 280

Subscription Flow

DECEMBER 28, 2023

There are many people who have amazing SaaS business ideas, however, they do not have enough money to invest so that their ideas can be materialized. We suggest you start working on the feasibility of your idea, present it to an investor, and secure funding for your SaaS business idea. What should be done? Give up the idea?

Metrics 52

Metrics SaaS Finance Acquisition 52

Clouded Judgement

DECEMBER 21, 2023

At $200M+ ARR, businesses have built up a substantial base of recurring revenue streams that have already paid back their initial CAC. Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford.

Cloud 177

Cloud Software Benchmarks Retention 177

Blulogix

FEBRUARY 9, 2024

As we delve deeper into the subscription economy, it’s essential to understand the multifaceted benefits and inherent challenges of adopting recurring revenue models. This predictability aids in accurate financial forecasting, budgeting, and resource allocation, enabling more strategic planning and investment.

Revenue 52

Revenue Business compliance B2B 52

Practical Advice on SaaS marketing

MARCH 5, 2012

Having lived through several acquisitions during my career in technology companies, I have some idea of what the folks at SuccessFactors (acquired by SAP last year) and Taleo (acquired by Oracle a few weeks ago) are going through. And we're talking about the entire experience - reliability, security, deployment, upgrades, etc. -

Acquisition 100

Acquisition SaaS Finance Business Model 100

SaaStr

MAY 25, 2022

Investors will invest in your business if: You have a strong brand. These professionals had to earn their spot by selling Expensify subscriptions. Unlike traditional business models, don’t look at advertising as the solution to customer acquisition. No one built a business solely on metrics like TAT, LTV, etc.,

Scale 274

Scale Marketplace as a Service Business Model Advertising 274