Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

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Acquisition Strategy SaaS Underperforming Technical Team 98

Tom Tunguz

MARCH 24, 2019

These customer acquisition paybacks resemble consumer acquisition figures more than software. This math also implies a payback period, gross margin burdened, of less than 7 months. The public median is 18 months and the private median is 14 months.

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Metrics Benchmarks Scale Acquisition 277

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

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Benchmarks SaaS Social Media Sales Funnel 75

OPEXEngine

APRIL 26, 2022

Well, capturing as much total available market (TAM) makes growing your business through customer acquisition necessary. What is Customer Acquisition Cost (CAC)? Customer acquisition cost (CAC) is arguably one of the most important metrics for fast-growing B2B SaaS companies. So why even bother?

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Acquisition B2B Benchmarks SaaS 59

User Pilot

MAY 13, 2024

Customer acquisition cost dashboard tracks investment per customer, analyzing costs versus returns to gauge the effectiveness of acquisition strategies. Customer acquisition cost Customer acquisition cost (CAC) is the total investment that your business makes to acquire one customer. MRR benchmarks. Total revenue.

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Metrics SaaS Acquisition Retention 105

Tom Tunguz

NOVEMBER 12, 2023

Compare that to the benchmarks in 2013! Salesforce barely budged, perhaps an indicator of how labor-intensive the business is or how much the revenue growth has been through acquisition (Slack, Mulesoft, & Tableau). Snowflake is second, pushed by their best-in-class net dollar retention (NDR). In addition to the dated charts!

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Software Review Trends Revenue Software 291

Tom Tunguz

DECEMBER 6, 2016

What is your SaaS startup worth in an acquisition? To answer that question, we can analyze the data set of all software companies acquired over the last six years and benchmark them by enterprise value-to-revenue multiples. What is your SaaS startup worth in an acquisition?

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Acquisition Startup SaaS Benchmarks 100

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. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

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Cloud Payments Software Review Payment Solutions 235

Chart Mogul

SEPTEMBER 8, 2021

The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021. Tech is on fire … The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021.

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Scale Acquisition Scaling Sales Hiring 52

OPEXEngine

SEPTEMBER 15, 2021

OPEXEngine provides SaaS and Software companies with comprehensive and accurate analytics and benchmarks to help executives understand and improve operational performance. Investors and software company management need high quality and neutral benchmarks to assess their operational performance, reduce risk and improve efficiency.

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Software Review Benchmarks Technical Review Development Team Review 52

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . It’s tempting to prioritize new customer acquisition as your top growth priority. . Look for ways to quantify customer insights to develop proprietary benchmarks and communicate the value of your product.

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Payment Services Benchmarks SaaS Payments Merchant Services 80

Tom Tunguz

JUNE 12, 2016

The acquisition frenzy continues in SaaS. In the 2016 acquisition market, the median acquisition multiple is 7.8x In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft. billion, which prices the business at 8.1x

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Acquisition Startup Banking Benchmarks 100

Inturact

NOVEMBER 25, 2019

Do you know if your product’s Free Trial is hitting industry benchmarks? This article will help you determine just how much is being potentially lost and make sure you’re picking the right type of trial for your customer acquisition model. If not, you could be leaving a lot of money on the table.

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Benchmarks Acquisition SaaS Engagement 52

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Think of it this way: most SaaS companies have high customer acquisition costs, as you have to invest heavily in sales and marketing in order to realize high growth. The post Rule of 40: How to benchmark your SaaS growth appeared first on OPEXEngine. Read on to find out more!

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Benchmarks SaaS Sales Hiring Scale 52

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

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SaaS Technical Review Benchmarks Azure 254

Chart Mogul

JUNE 1, 2023

Segment your retention data by plan, region, or acquisition channel There are so many ways to slice and dice your data and gain insight into your business. A marketing executive, on the other hand, might look into how retention data compare against different acquisition channels – which channels are bringing in customers that stick around?

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Retention Metrics Benchmarks SaaS 90

Tom Tunguz

DECEMBER 16, 2021

Tokens are the paid customer acquisition channel of web3. By analyzing how web3 companies invest tokens, we can calculate the cost of customer acquisition (CAC) for a crypto company. We can benchmark them relative to their corporate value. L1 Web3 companies spend 29-95%. Percentile. Or sales and marketing spend.

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Venture Capital Blockchain Acquisition Benchmarks 254

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 177

Cloud Software Azure AWS 177

Tom Tunguz

SEPTEMBER 10, 2013

Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Below is my list of the six most important benchmarks and observations from that report.

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Benchmarks Startup Sales Hiring Compensation 111

Tom Tunguz

DECEMBER 8, 2013

As for the structure of the acquisition, there’s data that can be used for benchmarking. The x-axis shows the Acquisition Value in $M and the y-axis shows the cash share. First, 83% of these acquisitions were cash only. Third, a power law governs acquisitions. The first chart below shows the trends by size.

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Acquisition Startup Government Benchmarks 100

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Your technical infrastructure?

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Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

SaaStr

NOVEMBER 5, 2021

Including free acquisition and viral acquisition obscures underlying (in)efficiencies. The classic example is a VP of Marketing claiming tons of credit for terrible programs that don’t work where the underlying free and word-of-mouth acquisition is very strong. And IVP has published some data to help you benchmark it.

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Scale SaaS Acquisition Benchmarks 252

User Pilot

MAY 21, 2024

TL;DR Customer churn is a vital metric for SaaS enterprises, reflecting product value and customer satisfaction that must be calculated with industry benchmarks to gauge performance against competitors. These statistics provide businesses with a benchmark to assess their own levels of customer retention. Changing needs of customers.

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Churn Retention Software Review Metrics 52

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 177

Cloud Software Benchmarks Retention 177

Tom Tunguz

AUGUST 26, 2014

In 2013, the company recorded a sales efficiency of 0.47, meaning about $2 of sales and marketing spend is required to generate $1 in gross profit and the payback period, the number of years before a customer's revenue offsets the cost of customer acquisition is just over 2 years. Field 2011 2012 2013. ARPC 5,395 6,580 7,752.

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Benchmarks SMB Metrics SaaS 111

Payrix

MAY 14, 2024

Payments can have a meaningful impact on these core metrics that we walked through [this episode] and helping you still drive revenue growth when your new customer acquisition has slowed down.” They do change, I think the metrics stay the same, but the benchmarks of those metrics will change, right? So that’s one bucket.

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Payments Payment Services Payment Solutions SaaS Payments 130

OpenView Labs

NOVEMBER 12, 2020

When we were preparing the 2020 expansion SaaS benchmarking survey, our biggest question was: “How did COVID-19 and the economic downturn affect private SaaS companies?” Example product KPIs include product-influenced revenue, product-influenced word of mouth / referral acquisition, time to value, and PQLs generated.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

User Pilot

MAY 20, 2024

Customer advocates drive customer acquisition via WOM , bolster brand reputation and visibility, and can offer valuable insights to improve the product. To guide your efforts and provide benchmarks against which you can measure progress. Let’s get into it, shall we?

Scale 85

Scale Strategy Social Media SaaS 85

User Pilot

MAY 1, 2024

Improve customer acquisition with positive word-of-mouth. Improve customer acquisition : Delighted users become advocates for your brand. This reduces your customer acquisition costs and improves your bottom line over time. Improve customer retention by delivering exceptional experiences. The SMART goal-setting framework.

Customer Lifetime Value 105

Customer Lifetime Value User Experience Retention Scale 105

Tom Tunguz

JANUARY 14, 2015

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. Xero does exhibit an amazing sales efficiency metric of 1.05, meaning $1 invested today in sales and marketing yields $1.05

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Benchmarks Metrics SMB Outsourced Development 100

User Pilot

OCTOBER 15, 2023

SaaS conversion rate optimization is important to create the best customer experience that helps lower the customer acquisition cost and increase MRR. Use benchmarks to monitor your performance to see how well each stage converts. The industry benchmark for this metric sits at 8.5%. Imagesource: Firstpagesage.

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SaaS Payments Payment Methods Payment Solutions Payments 106

Brian Balfour

MARCH 21, 2017

Most growth communities, forums, and email lists will inevitably have that thread that goes: “Hey, what are the benchmarks everyone’s seeing for X?” I constantly find people seeking out benchmarks or pointing to benchmarks, and we’ve all been there -- who doesn’t want some normalizing data to understand whether we’re on track or not?

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Benchmarks Business Model Acquisition Subscription 40

SaaStr

SEPTEMBER 19, 2023

It shows you optimized onboarding for customers A low entry point, whereas traditional sales-based strategies require hiring sales teams, sales collateral, and a longer ramp-up time PLG significantly reduces CAC Product and embedded payments drive customer acquisition If you spend more time on a PLG strategy, you could save a lot of costs.

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Business Model SaaS Payments Payments Headcount 237

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 106

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 106

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

Tom Tunguz

SEPTEMBER 2, 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. Zendesk is a 700 person company that builds customer support software. Zendesk went public earlier this year.

Benchmarks 100

Benchmarks Metrics SaaS Scale 100

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Your technical infrastructure?

Acquisition 52

Acquisition Startup Underperforming Technical Team Customer Lifetime Value 52