SaaStr

OCTOBER 1, 2020

SaaStr speaker favorite Dave Kellogg recently shared with us his thoughts on why churn is dead, and what’s driving many companies to turn to net dollar retention. There are four ways to calculate churn rates: Gross vs. Net. ARR vs. ATR. The net problem. #2 Why is this? 2 Churn rates blow up LTV.

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Churn Retention Acquisition Benchmarks 220

SaaStr

SEPTEMBER 20, 2023

A Pivot From Growth At All Costs To Driving Profitability The Cloud model of recurring revenue, low marginal distribution costs, and strong net dollar retention dynamics is possibly one of the best and most resilient business models ever invented. Bessemer believes the top private Cloud companies will follow suit.

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Cloud Payments Software Review Payment Solutions 236

User Pilot

JUNE 19, 2023

2023 research by SaaS Capital shows the median net retention across SaaS companies is 102%. The median gross retention is also high: 91%. Sales strategy ( product-led vs sales-led ). Engagement model (high touch vs low touch). The median gross retention is also high: 91%. adoption rate.

Benchmarks 98

Benchmarks B2B SaaS Payments Payment Methods 98

Clouded Judgement

FEBRUARY 3, 2023

I also want to mention – I use this blog as somewhat of a personal journal. Net net - at the beginning of the year positioning was super bearish. Scatter Plot of EV / NTM Rev Multiple vs NTM Rev Growth How correlated is growth to valuation multiple? Follow along to stay up to date! Mid Growth Median: 6.9x

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Cloud Azure AWS Generative AI 130

User Pilot

FEBRUARY 22, 2023

If you’re in SaaS, you need to absolutely nail user retention as keeping hold of users is vital to the survival of any business. This comprehensive guide will explore how to appeal to existing and new users, share best practices that’ll help boost user retention rates, and discuss the best tools for the job.

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Retention Customer Lifetime Value Onboarding Churn 83

ChurnZero

JUNE 15, 2021

This is a guest blog post by Jeff Galowich, CEO of Blue Horizon Software. In a world seemingly obsessed with hyper-growth, this may sound like heresy, but when evaluating a B2B software-as-a-service (SaaS) company, the most important metric we look at is retention. The Different Types of Retention Metrics.

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Retention Metrics Churn Customer Success 59

SaaStr

NOVEMBER 30, 2023

Significant savings are possible when using a global workforce vs. onshore. Net dollar retention. Gross Margin Profitability Market Leadership So, what’s more important for you in terms of valuations? One way to get that is by building a global workforce. The key drivers, in order, are: Revenue growth.

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Scale Sales Hiring Scaling Outsourced Development 224

User Pilot

JULY 22, 2023

Customer acquisition cost vs lifetime value: which one should you prioritize? Some other key product metrics are customer retention rate, customer churn , average revenue per user, conversion rate , and gross margin. It will let you make data-backed decisions about customer acquisition and retention strategies.

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Acquisition Customer Lifetime Value Onboarding Retention 81

ChurnZero

MARCH 31, 2022

Following the webinar, we invited Dave to give his rapid-fire takes on tracking the retention of auto-renew customers, calculating customer lifetime value as a startup, comping CSMs on expansion, determining the importance of measuring time to value, and much more. Q: Do you ever see gross revenue retention without contractions?

Customer Success 98

Customer Success Metrics Technical Review Scale 98

Totango

APRIL 13, 2021

Distinguishing gross retention vs. net retention can provide deeper insights into your success metrics. What Is Gross Retention? Let’s start with gross retention. However, in this context, we’re focused on revenue retention. What Is Net Retention?

Retention 71

Retention Churn Revenue Metrics 71

User Pilot

JULY 27, 2023

Gross profit margin: This is the percentage of revenue that remains after deducting the direct costs associated with delivering your SaaS product, such as support, hosting expenses, data storage costs, and third-party licensing fees. Net profit margin: This metric shows how much of your revenue translates to profit.

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Sales Hiring SaaS Payments Sales Recruiting CTO Hire 98

CustomerSuccessBox

NOVEMBER 17, 2021

We will be discussing all Net Revenue Retention in this blog. What is Net Revenue Retention? But SaaS leaders know the importance of Net Revenue Retention and tracking it. But SaaS leaders know the importance of Net Revenue Retention and tracking it. Calculating Net Revenue Retention.

Retention 52

Retention Revenue Artificial Intelligence Systems Review 52

CustomerSuccessBox

JUNE 18, 2021

In this article, we collate blogs and webinars from CustomerSuccessBox which will help you as an extensive guide for customer success. The blog tells you about how does the onboarding experience of the customer define the ongoing relationship you have with your customer . Why is Customer Retention Important for B2B SaaS Business?

Sales Hiring 52

Sales Hiring Customer Success Scale Churn 52

OPEXEngine

NOVEMBER 23, 2020

Not familiar with cash-basis vs. accrual-basis accounting? Secondly, you will really struggle to measure proper gross margins with the significant variance that cash-basis accounting brings to the table. NOT TRACKING CUSTOMER RETENTION TRENDS (OR TRACKING IT INEFFICIENTLY). STAYING ON CASH-BASIS ACCOUNTING.

Finance 52

Finance Sales Hiring Headcount Scale 52

User Pilot

MAY 17, 2021

Product Marketing KPIs vs Product Marketing OKRs. Measuring product marketing success – Retention stage metrics (KPIs) to track. Product Marketing’s goal is to drive product success through positioning and messaging, communicating product value, and increasing product adoption and retention.

Product Marketing 98

Product Marketing Metrics Customer Lifetime Value Marketing 98

User Pilot

DECEMBER 3, 2021

A magic number below 1 means you should focus on retention and customer success while a magic number above 1 means you should increase your marketing spend. This shows you the net growth that your SaaS business is experiencing and whether or not your marketing strategy is translating to revenue growth. LTV:CAC ratio. Magic number 1.

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Metrics SaaS Scale Churn 103

OpenView Labs

DECEMBER 13, 2019

We had some of the top PLG leaders from organizations like Zapier, Dropbox, Atlassian, Expensify, Calendly, SendGrid, GitLab and more contribute to our blog and our podcast. Investors look closely at retention rates as a signal of customer health, product stickiness, competitive differentiation and pricing power. Check it out!

Sales Hiring 52

Sales Hiring Benchmarks AWS Scale 52

User Pilot

AUGUST 31, 2023

After conversion, this team continues to focus on customer retention and success, ensuring that customers achieve their goals with the SaaS product and remain satisfied over the long term. If you’re wondering what to begin with, having a blog that drives traffic is one of the best acquisition channels for SaaS. Userpilot’s blog.

Acquisition 102

Acquisition SaaS Payments Payment Methods Metrics 102

CustomerSuccessBox

OCTOBER 5, 2021

The following are the key considerations that you must look at (for improving retention, increase renewals & upsells, etc. However, the one universal metric is the “Net Retention Rate (NRR)”. Net Retention Rate (NRR). Suggested Read: Gross Retention Rate Vs Net Retention Rate.

Customer Success 59

Customer Success Technical Review Sales Hiring Underperforming Technical Team 59

Kellblog

FEBRUARY 2, 2023

The growth vs. profit pendulum : balance is in, growth at all costs is out. Formerly backseat metrics like ARR/FTE, free cashflow (FCF) margin, R40 score, and gross dollar retention (GDR) come to the front seat joining net dollar retention (NDR) and ARR growth. Retain is the new add. SaaS sprawl.

Software Review 120

Software Review Development Team Review Underperforming Technical Team Scale 120

Kellblog

JANUARY 2, 2024

Customer retention came into sharp focus in 2023 and with it a new, balanced view relying on both NRR and GRR as key retention metrics. Net new ARR growth rates are already rebounding. The semantics of predicting vs. reasoning. Expect more of this activity in 2024. Retain is the new add. Goosebumps. SEO is dead.

AI Search 110

AI Search Technical Review Technical Advisors ChatGPT 110

OPEXEngine

FEBRUARY 22, 2022

Aggregate Gross Margin tends to be higher for SMM SaaS businesses than it is for Enterprise SaaS companies because professional service revenue is a lower portion of overall revenue, and the absolute dollar amount generated does not adequately support (fund) a pure Direct Sales strategy. SMM vs. Enterprise SaaS Metrics.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

OpenView Labs

MARCH 30, 2020

In fact, as analytics expert Avinash Kaushik writes on his blog , choosing the wrong ones can create “sub optimal, tear-inducing outcomes that will, slowly over time, bleed the business to death.”. Net Dollar Retention (NDR). The problem is that there are dozens of metrics that can fall under the KPI umbrella. No pressure.

Benchmarks 54

Benchmarks Technical Review Churn Scale 54

SaaStr

MARCH 1, 2019

* What were the findings on what good looks like when it comes to logo retention? Assisted vs unassisted: What does Tom believe are the leading benchmarks for both? I must also implore you to check out his blog, tomtunguz.com. And we need to keep them, retention. Number two is aim for 90% logo retention.

Scale 114

Scale SMB Sales Recruiting Sales Hiring 114

SaaStr

JANUARY 3, 2020

* What were the findings on what good looks like when it comes to logo retention? Assisted vs unassisted: What does Tom believe are the leading benchmarks for both? I must also implore you to check out his blog, tomtunguz.com. And we need to keep them, retention. Number two is aim for 90% logo retention.

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SMB Sales Recruiting Sales Hiring Scale 26

Sales Hacker

OCTOBER 7, 2021

which activities are classified as COGS vs. S&M), cash flow forecast, etc. Beth works with our team of experts to help companies create a culture of engagement, reduce regrettable turnover, increase productivity and revenue, and grow key customer retention. Passionate about coaching, career development and retention.

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Scale Sales Recruiting Sales Hiring VP of Engineering 130