SaaStr

JUNE 12, 2020

Some spaces have higher CACs than others. Because if you’ve ever bid on Adwords, you know exactly what drives the price of an Adword up. If you don’t do freemium right, it doesn’t really decrease your CAC. First, find the CAC that works for you. Average burn rates, like CAC Averages, are misleading.

Scale 330

Scale SaaS Business Model Strategy 330

SaaStr

DECEMBER 3, 2021

10 SaaStr 211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk, and Kustomer. #9 7 SaaStr 124: Upfront’s Mark Suster on The One Thing That Kills Sales, Why You Have To Price High and Discount & Why Sales People Are Either Farmers or Hunters. #6

Scale 193

Scale Sales Hiring SMB Benchmarks 193

SaaStr

DECEMBER 4, 2023

So i f deals take longer to close, you’re spending more money and paying people longer, so your customer acquisition costs are increasing, payback takes longer to materialize, and your LTV to CAC goes down. It could be price, product composition, or payment terms. to find out what was going on. What are the best companies doing?

SaaS Payments 208

SaaS Payments Payment Services Payments Payment Features 208

SaaStr

MARCH 27, 2023

They either raise prices or they don’t give discounts. We all know which companies are “the best,” but we don’t always take a real look into what keeps them at the top. The top SaaS companies are growing really fast, roughly at twice the rate of their peers. So gross margin decreases a lot. So how do they get there?

SaaS Payments 197

SaaS Payments Technical Review Software Review Venture Capital 197

Blulogix

JANUARY 5, 2024

Key Definitions in Subscription Billing: Demystifying the Jargon By BluLogix Team Welcome to the fourth installment of our comprehensive guide on selecting the right subscription billing platform. Before we go much further, let’s go deep into essential definitions and concepts in the world of subscription billing.

Subscription 52

Subscription Payment Features Payment Services Payments 52

SaaStr

SEPTEMBER 22, 2021

billion at opening price. Historical CAC of 18 months, driving down to 15 months by IPO. Not uncommon in fast-growing Cloud companies, but a CAC that does consume a significant amount of capital, especially in a business with lower margins and a large hardware component. #5. Toast valued at $32.5 Now with a $30B (!)

Payment Methods 259

Payment Methods Payment Solutions Payments Cloud 259

Baremetrics

OCTOBER 8, 2021

One of the most important metrics is customer acquisition cost (CAC). CAC represents the total cost to onboard a new paying customer. However, calculating CAC directly in Stripe can be difficult. When it comes to calculating CAC for Stripe customers, along with all of the related metrics , Baremetrics excels. What is CAC?

Payment Services 96

Payment Services Payment Methods Payments SaaS Payments 96

SaaStr

JANUARY 3, 2021

One question I struggled with a lot in the early days was what price points supported inside sales reps. It was clear to me that our freemium offering, priced at from $0 to $19/month, couldn’t really support a traditional inside sales team. What about a $199 or even a $99/mo price point? But here’s what I learned.

SMB 330

SMB Pricing Sales Metrics 330

User Pilot

JANUARY 19, 2023

Customer acquisition costs (CAC) and customer retention costs (CRC) differ in their primary focus and cost types. While CRC focuses on existing customers, CAC focuses on bringing new customers to your product or business. Especially if you don’t know how to invest your money the right way. Let’s start! What is customer retention?

Retention 97

Retention Customer Lifetime Value Onboarding Acquisition 97

SaaStr

OCTOBER 11, 2023

Did monday.com’s founders feel like they’d be 100x bigger in just six years since that first SaaStr conference they attended? Eran Zimman, monday.com’s co-founder and co-CEO, shares his secrets to scaling and growth in an unpredictable market. monday’s Hypergrowth Journey From day one, monday built a platform. Why project management?

Scale 164

Scale Sales Hiring Scaling Banking 164

Baremetrics

OCTOBER 26, 2021

What is CAC for Shopify Partner Apps? What is CAC for Shopify Partner Apps? Use Baremetrics to calculate CAC for Shopify Partner Apps CAC for Shopify Partner Apps How do you calculate CAC for Shopify Partner Apps? What is CAC for Shopify Partner Apps? Try Baremetrics free. Table of Contents.

Payment Solutions 98

Payment Solutions Payments Payment Methods SaaS Payments 98

SaaStr

JULY 13, 2023

The rule was spend to an 8 month CAC, but not a day longer. Price raises can increase NRR, without adding value. We were lucky enough to do a deep dive with the co-founders of Monday.com, Eran Ziman and Roy Man. It was great and will be released soon on their podcast and ours. It took going multi-product.

SMB 176

SMB Scaling Metrics B2B 176

User Pilot

OCTOBER 29, 2023

WTP helps SaaS companies choose optimum prices for their products to maximize profit. The conjoint analysis simulates real-life situations where users have to choose between packages or plans made up of different features and prices. SaaS product teams also use it to prioritize features and evaluate the feasibility of new motions.

SaaS 103

SaaS Interviewing Pricing Market Research 103

Baremetrics

AUGUST 1, 2021

Optimize the pricing page 5. This data can prove to be invaluable in understanding which channels to invest in, as well as analyze your marketing department’s core strengths and weaknesses (by comparing your CAC with the industry benchmarks). So what works (and doesn’t work) as a SaaS acquisition strategy? Table of Contents.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

User Pilot

MARCH 15, 2022

In this blog post, you’ll learn everything about go-to-market strategies. An effective go-to-market strategy includes a selling strategy, pricing model, target audience, and most suitable channels for marketing your product. You’ve done the hard work of building a product or a specific feature that people want.

Strategy 92

Strategy Marketing SaaS Customer Lifetime Value 92

Baremetrics

SEPTEMBER 26, 2021

Most SaaS companies keep track of their customer acquisition cost (CAC) and customer lifetime value (LTV), but how about your CAC:LTV ratio or months to recover CAC? Cost of customer acquisition (CAC) v. CAC payback period/months to recover CAC vi. CAC-to-LTV ratio Churn i. Table of Contents.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Clouded Judgement

FEBRUARY 3, 2023

I also want to mention – I use this blog as somewhat of a personal journal. It’s a place I collect my thoughts. I’ll be right sometimes, I’ll be wrong sometimes, but it’s fun to try and make sense of what’s going on in the markets together. Now on to the content… What a crazy start to the year.

Cloud 130

Cloud Azure AWS Generative AI 130

SaaStr

JUNE 20, 2022

Further, you need to showcase your pricing model and the different ways you plan to monetize. An impactful deck that explains your business and the opportunity waiting for investors can often clinch the deal. Keep Everything Clear, Simple, and To-the-Point. Allin’s first piece of advice? metrics, and what value-add your VC gives the company.

Venture Capital 187

Venture Capital Management Business Model Investment 187

The Angel VC

MARCH 23, 2016

I received a lot of great feedback on the template and the original post remains one of the most viewed posts on this blog up to this day. Almost exactly four years ago I published a financial plan template for SaaS startups based on a model that I had created for Zendesk a few years earlier. Blue numbers indicate data-entry cells.

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

Totango

APRIL 30, 2021

To compare the cost of customer retention versus customer acquisition, let’s start with average customer acquisition cost (CAC), which tends to be the more expensive of the two categories. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period. Text marketing.

Acquisition 63

Acquisition Retention Social Media Advertising 63

Totango

AUGUST 25, 2022

The strategy of using customer engagement to increase sales can be framed in terms of balancing customer acquisition costs (CAC) with customer lifetime value (CLTV). The larger the margin between CAC and CLTV, the more poised a SaaS business is for sustainable growth and profitability. What Is SaaS Customer Engagement?

Engagement 96

Engagement Strategy SaaS Scale 96

User Pilot

JANUARY 31, 2023

Do you want to track product launch success with relevant KPIs and metrics but don’t know where to start? Product launch metrics provide valuable insights that you can use to improve your product and increase product growth. Here we will discuss how you can define product launch success and how to track, monitor, and improve it.

Metrics 96

Metrics Scale Software Review Retention 96

Kellblog

JULY 25, 2020

Higher valuations primarily just shift the Y axis, as they have done here, uplifting the maximum Y-value by nearly three times since I last blogged about such a chart [9]. I’ve seen growth-adjusted price/earnings ratios (i.e., Sometimes (e.g., 2008) it can get well below 5x. Sometimes (e.g., in 2013) it can get well above 10x.

Technical Review 95

Technical Review Software Review Pricing Metrics 95

The Angel VC

DECEMBER 20, 2013

] [Note: This post first appeared as a guest post on the blog of Totango. And if you like it, tweet it! ) Here’s how the charts look like with some sample data in it: Click for a larger version The main improvement of this version is that it now includes different pricing tiers and annual plans. You can download it here. (

Startup 199

Startup Customer Lifetime Value SaaS Metrics 199

Subscription Flow

DECEMBER 1, 2023

In this blog, keeping this context in mind, we will be going over certain key metrics for subscription business that you need to keep in mind in 2023-24 to ensure that you are able to gauge the success of your subscription business. In this sense, their revenue is consistent, long-term, and somewhat predictable.

Subscription 59

Subscription Payment Features Metrics Business 59

Chart Mogul

AUGUST 20, 2020

From the exclusivity period to the purchase price, keep your goals in mind and don’t give way unless you’re absolutely comfortable with doing so. For example, they might argue a longer survival period and larger cap if your IP isn’t watertight, or challenge your financials to push the purchase price down. Negotiate everything.

Acquisition 105

Acquisition Startup Technical Review Scale 105

Chart Mogul

MARCH 31, 2022

Is it the pricing? Metrics tell a story of how your business is performing. You can use them to be more data-focused with your business and product decisions. Whether you’re at an early stage or working on how to sell your company, you still want to know what works and what you need to improve. 9 Most Important SaaS Metrics. Customer Churn.

Metrics 52

Metrics Scale Startup SaaS 52

User Pilot

APRIL 23, 2023

Freemium or free trial to paid conversion rate to understand the effectiveness of your strategies and pricing models to increase paid subscribers. Customer acquisition cost (CAC) CAC, or customer acquisition cost, is the average cost of acquiring one new customer. Let’s start! What are product health metrics?

Metrics 89

Metrics Customer Lifetime Value SaaS Scale 89

SaaStr

JANUARY 24, 2024

Mark Roberge , SaaStr fan-favorite and Co-Founder and Managing Director of Stage 2 Capital brought together some of the top CROs in SaaS during the SaaStr Annual to share some of their greatest learnings and pivotal moments leading some of the Cloud 100 SaaS companies. Can you start and stop a PLG motion? How do you diagnose and solve churn?

Scale 217

Scale Sales Hiring Scaling Revenue 217

SaaSOptics

MAY 19, 2022

What’s your estimated customer acquisition cost ( CAC )? Again, corresponding variables such as customer acquisition cost ( CAC ) and customer revenue all tie back to your acquisition strategy. More customers = more revenue. Plain and simple. How much of your total company budget will be dedicated to customer acquisition? .

Acquisition 59

Acquisition Scale Strategy Software Review 59

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. The past twelve months have been relatively turbulent for Cloud founders. What does this mean for Cloud companies? The BVP Cloud Index is up 25%, indicating a light at the end of the tunnel.

Cloud 236

Cloud Payments Software Review Payment Solutions 236

User Pilot

JANUARY 8, 2024

This is particularly important in SaaS, where the CAC payback period is anything from a few months to over one year. This is particularly important in SaaS, where the CAC payback period is anything from a few months to over one year. This article shows you how. In-app strategies for converting free or trial users to paying customers.

Acquisition 105

Acquisition Strategy Social Media Underperforming Technical Team 105

Chart Mogul

JULY 6, 2023

If you want, you can learn more about churn basics and benchmarks on our blog. This is good news for your LTV:CAC ratio, CAC payback period, and of course LTV. Net negative churn, or negative churn, is known as the holy grail of SaaS or “SaaS nirvana”. Churn, in general, is a key metric and health indicator for your SaaS business.

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

The Angel VC

AUGUST 10, 2011

Today I'd like to tell you a bit more about what we at Point Nine Capital are looking for in SaaS startups (other sectors are something for another blog post). To put it as simple as possible, the health of a SaaS business is mainly determined by two factors: Customer lifetime value (CLTV) and customer acquisition costs (CAC).

Sales Recruiting 155

Sales Recruiting Startup Customer Lifetime Value SaaS 155

OPEXEngine

DECEMBER 7, 2021

Dive Brief: Usage-based pricing has grown 32% this year and now 45% of software-as-a-service (SaaS) companies use it all or in part, up from 34%, an OpenView survey shows. Pricing model growth. Usage-based pricing has been growing since at least 2018, when about a quarter of companies were using it, according to OpenView’s data.

Subscription 52

Subscription Payment Features Pricing SaaS 52

ProfitWell

APRIL 10, 2019

We will only be posting a few of these episodes on the blog, which means if you want to make sure you don't miss an episode of this series you must subscribe separately below *. "Freemium is an acquisition model, not a revenue model.". Click to enlarge. We’re all running ads. Everyone and their mother has an ebook. It’s just a dense market.

B2C 92

B2C Retention Acquisition Subscription 92

ProfitWell

MAY 21, 2019

Models match price points with an exchange of value that you've created. For instance, your business model might be a freemium plan, a scheme of various tiers with set prices, and/or custom-made enterprise plans. You'll target a large market of low-value, low-CAC customers. Factors influencing a customer acquisition strategy.

Acquisition 70

Acquisition Retention Churn Pricing 70