Chart Mogul

JULY 6, 2023

We’ll also share the latest benchmarks on negative churn among SaaS businesses. Benchmark your churn metrics against 2100+ SaaS businesses How negative churn causes explosive growth How to achieve net negative revenue churn What is churn? If you want, you can learn more about churn basics and benchmarks on our blog.

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

User Pilot

OCTOBER 5, 2023

You can reduce the payback period through PLG strategies like self-serve onboarding, focusing on cost-effective acquisition channels, iterating on pricing models , investing in customer retention , and using contextual upsell and cross-sell messages. Let’s break them all down. Book the demo to see how! What is CAC payback?

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

User Pilot

APRIL 23, 2023

Lifetime value determines revenue potential from each customer. Monthly recurring revenue tracks expected revenue from all active subscriptions to understand business health. Expansion monthly recurring revenue assesses revenue generated from upgrades and add-ons.

Metrics 96

Metrics Customer Lifetime Value SaaS Scale 96

OPEXEngine

MAY 18, 2021

SaaS Metric #1 – Annual Recurring Revenue (ARR). ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. ARR = (Overall subscription per year + recurring revenue from add-ons or upgrades) – revenue lost from cancellations.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Chart Mogul

MARCH 23, 2023

Are you effectively expanding revenue from your existing customer base? Gross revenue retention (GRR) and net revenue retention (NRR) are the key metrics to understand how well … How good is your business at retaining customers? Are you effectively expanding revenue from your existing customer base?

Retention 52

Retention Metrics Revenue Scale 52

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. Net Revenue Retention (NRR) is a SaaS metric that calculates the percentage of revenue retained from existing customers over a specific period of time.

Retention 98

Retention Revenue Software Review SaaS 98

CustomerSuccessBox

FEBRUARY 17, 2022

Most people judge the performance of a SaaS company by its Monthly Recurring Revenue (MRR) while evaluating a company by its Net Dollar Retention (NDR) can provide much more valuable insight. Acquiring new users creates a revenue stream that exceeds net revenue from your existing user base. What is Net Dollar Retention?

Benchmarks 52

Benchmarks Retention Churn Subscription 52

CustomerSuccessBox

DECEMBER 9, 2021

Here churn takes different forms; we mainly categorize it as customer churn and revenue churn. Yeah, we did not forget revenue churn, we just wrapped it in Monthly recurring revenue churn. MRR churn is the erosion of the monthly recurring revenue. 5) Expansion MRR. NPS is a weird one.

Customer Success 52

Customer Success Benchmarks Churn Scale 52

OPEXEngine

MAY 22, 2020

And I’d point out that you need to benchmark both the performance metrics and the underlying individual metrics to diagnose exactly where to focus on improvement. When asked what his primary SaaS metric is, Dave answered, “ARR – Annual Recurring Revenue.” ACV can be ARR plus services revenue, ie.,

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

ChurnZero

MARCH 18, 2022

Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e., all the metrics your CEO and CFO care about) and set the context for their usage. If you missed the webinar, you can watch it on-demand. Q&A recap.

Customer Success 98

Customer Success Metrics SaaS Banking 98

CustomerSuccessBox

OCTOBER 21, 2021

Customer Success is all about delivering value. Customer service is all about filling the holes in the hull of your boat while customer success is all about ensuring those holes don’t appear at all. But it is also a boon to the SaaS businesses because now you can earn much more through recurring payments.

Payments 52

Payments Customer Success SaaS Payments Revenue 52

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. Net revenue retention is the impact your current customer has on your revenue. The customer’s decision directly affects your revenue.

Retention 52

Retention Revenue Artificial Intelligence Systems Review 52

OpenView Labs

NOVEMBER 19, 2020

data points from our 2020 SaaS Benchmarks survey—we made this guide. Across all round types (Seed through Series D), the median gross margin profile was 75-78%. It’s important to recognize that your target customer profile impacts ability to upsell and net retention. The non-negotiables. Spending money to make money.

Headcount 55

Headcount Benchmarks Banking Retention 55

Valuize Consulting

MARCH 23, 2020

What’s more important in your company: landing that new prospect or expanding the revenue of that existing customer? SaaS expansion revenue is the economic lifeblood of recurring revenue for companies that wish to grow. You can—and should—use it as a way to benchmark your own business goals and results.

Revenue 40

Revenue Scale SaaS Benchmarks 40

Intercom, Inc.

OCTOBER 26, 2018

The result is a customer success team more focused on upselling or hitting quota than creating customer value. To build customer value, businesses need internal customer advocates who can prioritize long-term value to the customer over immediate revenue. We believe our work is in fact revenue producing, just not in the near-term.

Sales Hiring 123

Sales Hiring Customer Success Scale Underperforming Technical Team 123

Chart Mogul

SEPTEMBER 10, 2018

This week we'll get back to basics with recurring revenue. Recurring revenue is the heart of every subscription business, and a key reason for the explosion of SaaS as a business model in recent years. Put simply, recurring revenue is any of your company’s revenue that’s highly likely to continue in the future.

Metrics 68

Metrics Revenue SaaS Forecasting 68

SaaSOptics

JUNE 4, 2021

SaaS Metrics #1: Annual Recurring Revenue (ARR) . ARR is a representation of the Recurring Revenue a subscriber has with you over a 12 month period. Learn more about annual recurring revenue here. SaaS Metrics #2: Monthly Recurring Revenue (MRR) . 100000-90000)/100000 = 10% Revenue Churn .

Metrics 53

Metrics SaaS Customer Lifetime Value Payment Features 53

ProfitWell

DECEMBER 6, 2019

Product-led growth is a strategy that uses product value to pursue growth and expansion in a market. If customers love your product, upselling and cross-selling become easy. Upselling and cross-selling are the primary drivers of expansion revenue. To maximize revenue from usage, use a value metric.

Scale 68

Scale Development Team Review Traceability Software Review 68

Tom Tunguz

SEPTEMBER 21, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we’ve looked at in the past have been purely SaaS businesses.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

OpenView Labs

SEPTEMBER 23, 2019

Particularly within the SaaS world, where the allure of high returns in the private markets has resulted in all-time funding records due to the rise of the megaround , Softbank’s Vision Fund , and more. The most popular visualization of SaaS valuation data has revenue multiple plotted against growth (see the left-hand chart below).

Benchmarks 40

Benchmarks Data SaaS Scale 40

FastSpring

OCTOBER 25, 2019

If your CAC Payback Period is six months, but all your customers are churning after two, it’s safe to say your business isn’t going to survive long. SaaS Industry Benchmarks for CAC Payback Periods. Tunguz looks at a hypothetical SaaS company making $625k in Annual Recurring Revenue (ARR), and it’s growing at 15% a month.

Payments 61

Payments Scale SaaS Payments SaaS 61

ChurnZero

JULY 9, 2020

Because all relationships, even your strongest ones, take work – and some wooing. . At ChurnZero, we created our Admin Academy – a series of live, recurring webinars – to give customers the knowledge and skills they need to configure ChurnZero. Nurture with Networking Events. Did they complete the intended task, or even attempt to?

Retention 64

Retention Strategy Scale Sales Recruiting 64

SaaStr

FEBRUARY 14, 2024

The CEO doesn’t mind owning it in the beginning because all founders are passionate about their customers. We all become new customer-oriented, so we say we’re focused on the existing base, but once the sales team becomes 30-40% of headcount, it tends to dominate every conversation. Do we own the metrics and the people? .”

Customer Success 225

Customer Success Sales Hiring Scale AI 225

Baremetrics

JULY 21, 2021

As a SaaS or subscription-based company, you want to keep a watchful eye on your monthly recurring revenue and net MRR. As a business metric tool, Baremetrics provides insight into your monthly recurring revenue and other significant trends. Then, we’ll talk about how to grow your Net MRR growth rate and more.

Benchmarks 98

Benchmarks SaaS Payments Payments Churn 98

User Pilot

JANUARY 15, 2024

Key metrics to include in your dashboards include retention rates, user stickiness, monthly active users, conversion rates, customer acquisition costs, customer lifetime value, and monthly recurring revenue. Gathering data from multiple sources is an essential step to ensure that your dashboard has access to all the metrics it needs.

Metrics 105

Metrics SaaS Customer Lifetime Value Retention 105

User Pilot

DECEMBER 3, 2021

Measuring the magic number can tell you when you need to focus on customer expansion rather than customer acquisition. Other metrics like LTV:CAC ratio, expansion MRR , and revenue churn can help fill in the blind spots that the magic number missed. New user revenue vs expansion revenue. Revenue churn rate.

Metrics 105

Metrics SaaS Scale Churn 105

SaaStr

JUNE 10, 2021

Ep #402: Mårten Mickos, CEO of HackerOne, explains their innovative approach of packaging customer value derived from a variety of activities into an annually recurring subscription offering that delivers outstanding value to customers while simplifying the buying process and the customer journey.

Outsourcing Services 140

Outsourcing Services Marketplace as a Service Outsourced Development Scale 140

Sales Hacker

JUNE 23, 2020

We’re going to talk all about the important tenets of customer success and how to think about customer success from an integrated, holistic customer experience perspective. So, first of all, congratulations on the arrival of your pending child. Sam Jacobs : All right, well, I’ll be cheering for you. Yeah, you know?

Scale 67

Scale Sales Hiring Technical Review Customer Success 67

SmartKarrot

JANUARY 12, 2021

While different industries have different profit margins, knowing the cost of goods sold (COGS) is a common deciding factor in all to calculate those margins. While there are many types of costs associated with a SaaS company, COGS doesn’t include all of them. Two ways of measuring revenues. What is COGS used for?

Customer Success 10

Customer Success Customer Lifetime Value SaaS Scale 10

Baremetrics

NOVEMBER 1, 2021

Net revenue retention (NRR) and gross revenue retention (GRR) are two important metrics. NRR and GRR are important secondary metrics for any SaaS enterprise that brings in money through a subscription revenue model. Connect Baremetrics to your revenue sources, and start seeing all of your revenue in a crystal-clear dashboard.

Payments 95

Payments Retention Revenue Payment Services 95

User Pilot

JULY 26, 2022

These include customer retention rate , monthly recurring revenue, customer lifetime value , DAU to MAU rate , repeat purchase rate, expansion MRR , customer satisfaction score , net promoter score , customer health score , and the revenue churn rate. Customer retention benchmarks. Monthly Recurring Revenue.

Retention 98

Retention Metrics Customer Lifetime Value Churn 98

FastSpring

AUGUST 11, 2020

15% of people who shop online now pay for at least one subscription and nearly 90% of businesses are looking for ways to adapt their online payment platforms so they can handle recurring subscription payments. In this comprehensive guide, we’re going to take a deep dive into: What is subscription revenue? What is subscription revenue?

Payment Features 83

Payment Features Payments Payment Methods Subscription 83

OpenView Labs

DECEMBER 8, 2021

What was once an upfront investment with clear-cut milestones and handoffs between Sales and Customer Success (“CS”) is now a continuous and complex journey where the initial contract is just a company’s metaphorical foot in the door to a larger expansion opportunity (and bulk of the future revenue). Background on Customer Success.

Customer Success 64

Customer Success Acquisition Retention Benchmarks 64

User Pilot

FEBRUARY 22, 2023

Measuring user retention rate is all about focusing on the individual user (i.e., The most advanced stage of onboarding is focused on building loyalty, encouraging habitual use, and taking advantage of upselling opportunities. The lower the GRR, the higher your revenue loss from downgrades and churns. How does it help retention?

Retention 93

Retention Customer Lifetime Value Onboarding Churn 93

ChurnZero

JANUARY 26, 2021

Customer success continues to evolve as a practice within companies that enjoy recurring revenue models. From technical support to renewals and upselling, this role might be one of the most confusing and misunderstood jobs in all of tech. . Reduce the number of unfilled positions across all regions. For example: .

Customer Success 98

Customer Success Sales Recruiting Sales Hiring Management 98

Chart Mogul

SEPTEMBER 26, 2018

After all of that negativity last week with churn, this week we're looking at a far more positive aspect of subscription businesses: expansion! Expansion MRR shows if the company can deliver more and more value to customers and monetize that value. Expansion in SaaS is often overlooked. How to increase expansion rate.

Metrics 63

Metrics SaaS Customer Lifetime Value Acquisition 63

User Pilot

OCTOBER 18, 2023

TL;DR In SaaS, retention is the sum of all activities a business undertakes to keep its users. Focusing on retention – that is, keeping your current customers for longer – can have a disproportionate impact on your revenue compared to new customers acquired. You should always be focusing on trying to retain customers !

Retention 52

Retention Strategy SaaS Customer Lifetime Value 52