SaaStr

FEBRUARY 9, 2024

It is often the first point of interaction between potential customers and your company. Given this, you must understand the role that each facet of the business plays in promoting that product, from marketing and sales to customer service. The first role that comes to mind is driving revenue and it’s probably within sales.

Scale 252

Scale Sales Hiring Sales Marketing 252

SaaStr

JUNE 14, 2023

They’re only growing revenue 7-8%, but they are relatively efficient, with 13% adjusted EBIDTA margins. Transaction Revenue Has Slowed, But Subscriptions Are Up. LegalZoom has pushed more and more customers to subscribe to its legal services vs. just purchasing one-off products like incorporation. #5.

Subscription 169

Subscription Payment Features Churn Retention 169

SaaStr

AUGUST 20, 2021

The higher the churn, the lower your CAC needs to be to survive. The cash-flow positive one has 130% NRR from SMBs and has several years of existing customers to renew. Projected revenue? Including — or not including — customers also acquired for free, in your CAC measurement. Close the customers now.

Scale 279

Scale Churn Metrics Startup 279

SaaStr

FEBRUARY 17, 2021

Ah, who should Customer Success report to? So usually, she can easily also manage Customer Success as well as all her reps. And Sales and Customer Success are of course connected. Better alignment with VPS owning an ARR/MRR goal vs. just bookings goal. Sales is just the very beginning of a 5-10 year customer journey.

Customer Success 272

Customer Success Scale Churn Finance 272

SaaStr

JANUARY 12, 2024

Is it the end of an era for customer success in SaaS? We just wrote up how some of the biggest changes of SaaS are now coming, specifically in Customer Success and Sales. Customer Success Is Vulnerable to Cuts Jason shared that he didn’t realize how vulnerable customer success was to cuts until 2023. Let’s dive in.

Sales Hiring 239

Sales Hiring Customer Success Scale AI 239

SaaStr

APRIL 4, 2023

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Smaller deals often mean approaching people one-to-many vs. one-to-one. You’ll be able to spend more because the lifetime customer value could be in the millions. Are you seeking lots of small deals?

Scale 220

Scale Strategy Scaling Outbound Sales Team 220

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. The only thing that mattered was revenue.

Metrics 184

Metrics SaaS Sales Hiring Finance 184

OPEXEngine

JUNE 11, 2020

Every few months I take a look at the top read blog posts on OPEXEngine, to make sure I have a solid understanding of the topics that you are looking for more insight on. As a result, I decided to share with you a few of our Not-to-be-Missed blogs. Best SaaS Blog Posts You Shouldn’t Miss.

SMB 59

SMB SaaS Benchmarks Subscription 59

SaaStr

JANUARY 12, 2021

Xero is a very interesting SaaS case study with (x) the majority of its revenue outside the U.S., Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Churn is 1.1% Xero’s SMB churn isn’t zero. So nail a niche!! And the U.K.

Customer Lifetime Value 213

Customer Lifetime Value SMB Churn Scale 213

SaaStr

JANUARY 24, 2022

Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing. Mistake #1: Bookings are not revenue.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

SaaStr

JUNE 8, 2022

100k+ customers are now the engine, not self-serve SMBs. These 2,900+ customers are growing 46% year-over-year. This trend had started several years ago, but even in 2021, 63% of revenue was from 10 seat or smaller customers. 5 Interesting Learnings: #1. That doesn’t look to be the case going forward. #2.

SMB 269

SMB Enterprise Engineering Scale 269

SaaStr

JANUARY 17, 2023

Sales-led vs. product-led is a hot topic right now, and Jason Eubanks, Chief Revenue Officer of Harness, shares the answer during this week’s Workshop Wednesday — held every Wednesday at 10 a.m. Everything is defined by customer interactions, from how they find Harness to becoming a customer. Increase revenue.

Startup 217

Startup Sales Sales Funnel Education 217

SaaStr

DECEMBER 29, 2019

Salesforce likes to talk about “Customers for Life”, and while that’s sort of catchy, it’s a little hard to grok what it really means. At EchoSign, now Adobe Sign, there’s a large group of well-known customers that I closed, Back in The Day … that now have been customers for 10 years.

Scale 345

Scale Churn Construction SMB 345

SaaStr

JANUARY 14, 2021

Reducing churn in SaaS, along with increasing new ARR is the backbone to growing your business. In this guide, Andrea Webb, the SVP of Customer Success & Retention at Solarwinds , and Tim Willey, the SVP of Commercial Strategy & Operations at ForgeRock , share their tips for understanding and combating churn. .

Churn 172

Churn Customer Success Subscription Payment Features 172

SaaStr

MAY 25, 2022

Sales-assisted sales now at $165m ARR, and growing 35% (vs 14% overall and just 7% for self-serv). If Momentive / SurveyMonkey had stayed 100% self-serve and low end, it likely wouldn’t be growing much at all, with self-serve revenue now only growing 7%. 91%+ of customers pay annually. Talk about a long tail!

Scale 231

Scale Payments Payment Solutions Payment Services 231

ChurnZero

DECEMBER 29, 2020

Top 10 Blog Posts from 2020. 9 Well-Meaning Yet Harmful Phrases to Avoid with Customers. This article is a roundup of the not-so-obvious phrases you should avoid saying to a customer no matter how well-intentioned or deserved. Check out this post to see if you’re inadvertently sending subliminal negativity to your customers.

Sales Hiring 98

Sales Hiring Scale Technical Review Software Review 98

SaaStr

SEPTEMBER 3, 2023

Recurring software revenue is now recognized as a great way to generate tons of cash for investors,” says Gerety. Do public markets understand recurring revenue and SaaS models?” Fast forward, and Box is over $1B in revenue. For every dollar you spend this year, your customers buy $1.20 But that wasn’t always the case.

Sales Hiring 219

Sales Hiring Headcount Finance Technical Review 219

SaaStr

AUGUST 12, 2020

You need to back into what you are solving for: Is your churn material? If it’s close to zero by logo, and negative based on cohort revenue (i.e. you have net negative churn), multi-year contracts are worth less. It may be worth it later if your churn is high. Five is a stretch.). Are your renewals a lot of work?

Churn 173

Churn Revenue SaaS Sales 173

User Pilot

AUGUST 9, 2023

Wondering how to calculate customer retention rate and why? It’s important to measure the customer retention rate to see how well your product retains customers and to monitor any changes to try and improve it. TL;DR Customer retention rate measures the percentage of customers a company keeps over a specific timeframe.

Retention 97

Retention Customer Lifetime Value Churn Metrics 97

SaaStr

MARCH 31, 2021

Revenue grew nicely at first from $1m to $3.5m Customer count growing 33%, revenue growing 65% — the “Golden Ratio” for future growth. UiPath grew from 6,009 customers last year to 7,968 at January 2021, or 33% growth. Fast, but revenue grew much faster (65%). 2014: $500k rev. seed round.

Outsourcing Services 360

Outsourcing Services Outsourced Development Payment Features Cloud 360

SaaStr

FEBRUARY 15, 2022

if Churn > 2% = Bad, Just Terrible. And even in the enterprise, losing one big customer can swamp you here in the early days. What most matters is that churn is going down , rather than the core absolute value, IMHO. And can’t customer support just do some of this at least? Well — Maybe.

Scale 241

Scale Customer Success Sales Hiring Scaling 241

SaaStr

DECEMBER 19, 2019

It will really, really show you how power laws kick in with recurring revenue models. Freemium remains the source of 60% of HubSpot’s customers, even at almost $1b in ARR. 60% of Hubspot’s customers are still starting off in a free trial or free product. But no big boost from net negative net churn.

Outsourcing Services 312

Outsourcing Services Scale SMB Pricing 312

User Pilot

FEBRUARY 4, 2023

Wondering how you can make the most of your growth analytics to boost average revenue per user, and retention, and drive product growth ? TL;DR Growth analytics looks at each pillar of growth and chooses the metrics that dictate product growth and revenue. The growth metrics you should be tracking.

Acquisition 96

Acquisition Retention Churn Metrics 96

SaaStr

SEPTEMBER 6, 2021

Q: Who Should Our First Head of Customer Success Report To? Ah, who should Customer Success report to. So usually, she can easily also manage Customer Success as well as all her reps. Better alignment with VPS owning an ARR/MRR goal vs. just bookings goal. A VPS wants to close more revenue. It’s not super simple.

Customer Success 228

Customer Success Sales Hiring Finance Churn 228

SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. It captures the predictability of SaaS revenue and built-in growth. It’s much easier to sell something to a customer you’re already working with than it is to win them again and again.

Metrics 201

Metrics SaaS Marketing SMB 201

User Pilot

JULY 30, 2023

Customer retention vs acquisition cost: Which metric matters more? While it’s important to acquire new customers for growth, retaining existing customers is imperative to ensure long-term success. So let’s see when you should prioritize one metric over the other and how you can boost your customer retention rates.

Acquisition 89

Acquisition Retention Customer Lifetime Value User Experience 89

User Pilot

MARCH 23, 2023

What are the reasons for customer churn in SaaS? And how can customer success teams address them to ensure product growth? As a SaaS company, your ultimate goal is to retain customers and keep them happy with your product. However, sometimes things don’t go as planned, and customers churn. moment faster. #3:

SaaS Payments 96

SaaS Payments Churn Underperforming Technical Team Payment Methods 96

SaaStr

APRIL 14, 2023

Mistake #2: Labeling The Value Prop Too Soon Founders at this stage often don’t know enough about their customers to define the value prop, so don’t be so quick to nail it down and say, “This is what our value prop is.” Walk with customers to the very end of the customer journey to see what’s working and what isn’t.

Development Team Review 211

Development Team Review Technical Review Underperforming Technical Team SMB 211

SaaStr

OCTOBER 17, 2023

Customer success is all about outcomes. If you’ve raised venture capital, you know net revenue retention is important. What does NRR have to do with customer success? Anyone looking to grow their customer success team, or rather, drive growth and NRR, will have some valuable takeaways. Get more new customers.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. How do you lower your churn rate and make sure all your users stick around? In this article, we’ll show you: What customer churn is and why it matters.

Churn 95

Churn Software Review SaaS User Experience 95

User Pilot

JANUARY 19, 2023

You need to have a solid understanding of key quantitative metrics if you want to focus on and improve essential aspects of SaaS businesses like success measurement and customer retention. Quantitative metrics help SaaS companies measure key performance indicators (KPIs) , improve customer satisfaction , and boost revenue.

Metrics 97

Metrics Customer Lifetime Value Retention Onboarding 97

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. What’s negative revenue churn? Get deep insights into MRR, churn, LTV and more to grow your business.

Churn 118

Churn Revenue Benchmarks Pricing 118

SaaStr

FEBRUARY 28, 2022

A few ideas on how to help the sales team make this your best year so far: Hire dedicated sales / revenue ops. Some are better at SMBs, vs. mid-market. Get out on more prospect and customer Zooms as CEO. This increases the odds a deal closes, and decreases the odds a customer churns. Do more customer marketing.

Scale 241

Scale Sales Hiring Sales Enterprise 241

User Pilot

MAY 5, 2022

Churn analytics helps you detect your product friction points and understand why users stop using the tool. This is crucial if you want to know how healthy your SaaS product is and what should be improved to increase customer retention and lower the churn rate. A churn rate over 10 % indicates trouble. Let’s begin!

Churn 98

Churn Retention Subscription Payment Features 98

User Pilot

JULY 31, 2023

The big deal is turning them into paying customers who keep renewing their subscriptions long-term. This article will show you practical strategies to crack the customer retention code and maintain sustainable recurring revenue. Acquisition marketing focuses on gaining new customers and expanding market share.

Retention 95

Retention Strategy Marketing SaaS 95

User Pilot

MARCH 31, 2023

Analytics vs metrics – how do they differ from each other? Understanding the nuances between them is critical to utilize them to improve your feature adoption , customer behavior, etc. Analytics collects and analyzes data to understand customer engagement with your products. Categories of customer analytics.

Metrics 94

Metrics Customer Lifetime Value Data Analysis Engagement 94

Subscription Flow

DECEMBER 27, 2023

Let us dig straight into the meat of this blog: customer renewal rate is way of determining the imprint of customers who renew their subscriptions to your product or service. What Is Customer Renewal Rate? Knowing Your Customers: Knowing your customers is essential for retaining them.

SaaS 64

SaaS Subscription Payment Features Forecasting 64