SaaStr

FEBRUARY 14, 2023

For one simple reason: Second Order Revenue. What it all means is that if you do it right, you’ll make 6x or more the revenue from your customers after the sale itself. What if I have nothing to say, you say? It all builds Attitudinal vs. mere Behavioral Loyalty. Word-of-Mouth. Champion Change.

Customer Success 278

Customer Success Compensation Churn Enterprise 278

SaaStr

NOVEMBER 30, 2023

With over a decade of data from qualitative learnings and insights amassed through a network of leaders, ICONIQ deep dives into what it takes to succeed at GTM throughout the four stages of growth. Because founder-led sales worked really well for most of the early stages, but you eventually start running out of juice around $15M ARR.

Scale 224

Scale Sales Hiring Scaling Outsourced Development 224

SaaStr

JULY 26, 2022

Don’t need as much sales experience on sales team. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Net net, most true SMB SaaS products often churn on the order of 3% per month almost no matter what you do. 30,000,000+ of them.

SMB 350

SMB Churn Payment Services SaaS 350

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. Why is this market different than others? Because of the interest rate increase by the Fed.

Metrics 201

Metrics SaaS Marketing SMB 201

SaaStr

OCTOBER 12, 2021

upsell + expansion CAC vs $1.67 Net revenue retention rate is very predictive of your overall valuation (per Gainsight + Bessemer Venture Partners ). . Intriguing Session Slides: Customer Success SaaStr Session #5: “How to Perfect the Customer Journey from Marketing to Sales to CS with Pilot’s CEO and CRO”.

VP of Engineering 324

VP of Engineering Customer Success Engineering Retention 324

SaaStr

FEBRUARY 17, 2021

VP of Sales (once you have one). There are clear Pros and Cons to reporting to a VP of Sales. The Pros are: Usually, a VP of Sales is your best manager. And Sales and Customer Success are of course connected. Better alignment with VPS owning an ARR/MRR goal vs. just bookings goal. Not just retain revenue.

Customer Success 272

Customer Success Scale Churn Finance 272

SaaStr

NOVEMBER 16, 2020

More on why the great sales teams almost always end Q4 strong here. If you’d hoped to grow 35% last quarter, and came up short at 25% … but still added more net new revenue than the quarter before — that’s a Soft Miss. By then, second order revenue should be working. But SaaS is a journey.

Scale 338

Scale Forecasting Revenue Consulting 338

SaaStr

FEBRUARY 1, 2021

And a Rockstar VP is really what you need in every position. If you don’t think you need a great VP of Sales, Product, Marketing, Customer Success, and Engineering — then all that all that means is you’ve never worked with a great one. Head of Sales – What Corners Can I Cut? The problem?

Sales Hiring 271

Sales Hiring Part-Time VPE Scale Sales Recruiting 271

SaaStr

DECEMBER 14, 2022

Meanwhile, many of Hubspot’s smaller clients (the 1-10 segment) require product-led motions, where direct revenue may pile up slowly in the early days. Work to understand what you’re doing and why you’re doing it, so you know how to allocate your resources effectively. Ask yourself: what are you trying to solve for customers?

Scale 215

Scale SMB Scaling Innovation 215

SaaStr

MARCH 2, 2021

In SaaS companies in the very wide band from ~$1m to $40m ARR or so, the debate over Quarterly vs. Monthly Quotas comes up all the time. And it especially comes up when you hire your First VP of Sales, because odds are, he or she will want to move from Monthly to Quarterly Quotas. So what’s to do? Not really.

Sales Hiring 273

Sales Hiring Revenue Sales SaaS 273

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. And then — he sent me his financials. Cash is king.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

SaaStr

JUNE 12, 2020

There are some questions in SaaS that are, at some level, almost a mystery: Why was Veeva able to burn only ~$10m net on its way to an IPO? The same with Qualtrics vs Medallia. It’s just a derivative of what I think the “root cause” is. Because there is a lot of revenue to grab in the spaces where it is expensive to compete.

Scale 330

Scale SaaS Business Model Strategy 330

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. it wasn’t until later on in 2007 that we had enough revenue to create a large enough group of customers to go on a 10 Year Journey with. Really, quite a lot. Not Always.

Scale 345

Scale Churn Construction SMB 345

SaaStr

SEPTEMBER 20, 2023

What does this mean for Cloud companies? Beyond multiples, many Cloud companies faced a deluge of headwinds that impacted business fundamentals… Lengthening sales cycles Tightening customer budgets It was no surprise that SaaS IPOs came to a screeching halt. The past twelve months have been relatively turbulent for Cloud founders.

Cloud 237

Cloud Payments Software Review Payment Solutions 237

SaaStr

JUNE 29, 2023

As buyers grapple with expanding technology, higher prices, and a need for efficiency, SaaS companies need to deliver what their audience is looking for to win in the market. Many net-new purchases are for data security, compliance, risk management, and AI-powered tools. SaaS buying has changed. Why is this? Well, they’re sticky.”

VP of Engineering 231

VP of Engineering Trends Cybersecurity Sales Hiring 231

SaaStr

APRIL 28, 2019

With Slack’s IPO data and financials finally public, what is left to know about the app we all use and have been reading about for years? What’s interesting to know about Slack … that we didn’t already know? ??. Free also serves as a hunting ground for sales to find prospects and leads. That has changed.

Scale 275

Scale Venture Capital SMB Enterprise 275

SaaStr

OCTOBER 25, 2021

Q: What billing or pricing tactic have you found in the end just wasn’t worth it? Usually they are a sign of a weak VP of Sales (who can’t close), or founders just trying everything possible (which isn’t all bad). ” — Eric McClure, Head of Revenue Operations, Xplor. Unpaid pilots almost never work.

Pricing 279

Pricing Scale Enterprise Onboarding 279

User Pilot

JULY 27, 2023

SaaS companies have many moving parts, and it can be difficult to determine who does what. What is a SaaS business model? What to do before building a team for your SaaS company You can’t just jump into hiring without some forethought, or you’ll make many mistakes. What are the different roles in SaaS companies?

Sales Hiring 98

Sales Hiring SaaS Payments Sales Recruiting CTO Hire 98

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. That’s what this guide is all about. What’s negative revenue churn? Try Baremetrics Free.

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. Many of you will have little to no dedicated help in sales operations , even up to $10m ARR or beyond. If that’s you, or your VP of Sales, or even your VP of Marketing … it can sort of work for a while.

Scale 241

Scale Sales Hiring Sales Enterprise 241

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. What does NRR have to do with customer success? What Does NRR Aim To Answer Most people know the formula for NRR. The framework above is a lean canvas to help you understand your customers’ needs post-sale. Everything!

Scale 164

Scale Sales Hiring Customer Success Scaling 164

User Pilot

NOVEMBER 28, 2022

A churned user means lost future revenue and a waste of the resources it took to acquire them. In this article, we’ll show you: What customer churn is and why it matters. High customer churn tanks future growth because it’s hard to offset the loss in monthly recurring revenue. What is customer churn?

Churn 98

Churn Software Review SaaS User Experience 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. Increasing NRR Accountability.

Retention 52

Retention Revenue Artificial Intelligence Systems Review 52

ChurnZero

JUNE 15, 2021

This is a guest blog post by Jeff Galowich, CEO of Blue Horizon Software. This is the key component of what we call the “quality of revenue,” which focuses on the stability and predictability of a company’s underlying business fundamentals. . cross-selling, upselling, etc.) cross-selling, upselling, etc.)

Retention 59

Retention Metrics Churn Customer Success 59

User Pilot

JULY 30, 2023

Customer retention vs acquisition cost: Which metric matters more? Customer retention requires more focus when you have high churn rates , high acquisition costs, and a business model reliant on recurring revenue. What is customer acquisition? What is customer retention? Track and analyze user behavior.

Acquisition 94

Acquisition Retention Customer Lifetime Value User Experience 94

Baremetrics

SEPTEMBER 14, 2021

The Baremetrics blog has a ton of articles about accounting, so be sure to check out some of our other favorites! What Makes SaaS Accounting Different from Traditional Accounting? What Makes SaaS Accounting Different from Traditional Accounting? What Makes SaaS Accounting Different from Traditional Accounting?

SaaS Payments 93

SaaS Payments Payment Services Payments Payment Features 93

ChurnZero

MARCH 31, 2022

On logo/count-based vs. dollar-based rate, the real issue is how similar your customers are to each other. the logo stays with you, but they consume less, so their monthly recurring revenue decreases)? Annual recurring revenue (ARR)-based churn (dollars renewed divided by dollars up for renewal) does not. See your local CFO.

Customer Success 98

Customer Success Metrics Technical Review Scale 98

User Pilot

JANUARY 31, 2023

Have you ever used Customer Success Qualified Lead (CSQL) to drive product growth and increase your revenue? In this article, we’ll go over what a know what customer-qualified lead is, why it’s important to track them and how can this help increase revenue. What is Customer Success Qualified Lead (CSQL)?

Customer Success 96

Customer Success Revenue Software Review Strategy 96

User Pilot

MARCH 31, 2023

Analytics vs metrics – how do they differ from each other? Some examples of important metrics are activation rate , number of active users (NAU) , conversion rate , churn rate , monthly or annually recurring revenue (MRR/ARR) , average revenue per account (ARPA), customer acquisition cost (CAC), and customer lifetime value (CLV or LTV).

Metrics 97

Metrics Customer Lifetime Value Data Analysis Engagement 97

User Pilot

JUNE 5, 2023

TL;DR The SaaS conversion funnel is a visual representation of your ideal customer journey from awareness to product adoption and revenue expansion. It differs from the SaaS sales funnel which ends when a user makes their first purchase, or the SaaS marketing funnel which ends with brand advocacy. What is a conversion funnel?

SaaS 85

SaaS Sales Funnel Customer Lifetime Value Acquisition 85

User Pilot

MAY 18, 2023

What's the difference between UX vs CX? CX professionals track the following metrics: customer lifetime value, net promoter score, customer effort score , customer satisfaction score , retention rate, and churn rate. What is user experience? What is customer experience? That's not entirely true.

User Experience 95

User Experience Underperforming Technical Team Customer Lifetime Value Retention 95

Baremetrics

DECEMBER 7, 2023

What’s different this time is that we are having these conversations with nearly everyone, and the changes can be very sudden. Here’s what we cover: 1. Adjust your revenue forecast Base-Case scenario Worst-Case scenario Review bank balance before expense adjustments 4. We will also show you how you can evaluate your new plan.

SaaS Payments 52

SaaS Payments Payment Services Sales Hiring Payments 52

ChurnZero

JULY 17, 2020

This is a guest blog post by Irit Eizips , Chief Customer Officer and CEO of CSM Practice. . Fortifying relationships with existing clients can make your revenue-generating efforts more fruitful and can help boost your end goal. In some cases, the renewal process is owned by the Sales team (not the Customer Success team).

Sales Hiring 59

Sales Hiring Outsourced Development Sales Software Review 59

OPEXEngine

SEPTEMBER 21, 2021

Are you fully realizing all of your sales deals on your income statement? Revenue realization and revenue recognition are two different events that impact your ability to accurately forecast and reflect on the true earnings in a period. Definition Of Revenue. Effectively, the revenue is deferred and not yet realized.

Payments 52

Payments SaaS Payments Revenue Deferred Revenue 52

OPEXEngine

NOVEMBER 23, 2020

If you are asking “what is a functional P&L?”, Here’s a super basic overview of the key P&L areas we typically use: Revenue. Sales & Marketing Expenses (S&M). This may not seem like a major issue, but if you are calculating sales efficiency metrics like CAC, Months to Recover CAC, Magic Number, etc.,

Finance 52

Finance Sales Hiring Headcount Scale 52

User Pilot

MAY 17, 2021

Go ahead and skip directly to the product marketing KPIs list or continue to read if you’re just starting out and looking to understand more about what product marketing is first. What is Product Marketing? What is a Product Marketing KPI metric? Product Marketing KPIs vs Product Marketing OKRs.

Product Marketing 98

Product Marketing Metrics Customer Lifetime Value Marketing 98

OPEXEngine

JUNE 2, 2020

If your startup is a SaaS (or any other business with customers paying on a recurring subscription basis), churn is a critical metric – particularly net revenue churn and gross revenue churn – that will need constant measurement. What is revenue retention? Net Revenue Retention Rate.

Retention 52

Retention Churn Revenue Metrics 52