Chargify

OCTOBER 21, 2020

As many leading companies know, customer subscription management isn’t a “set it and forget it” concept. It is important for businesses to constantly analyze the health of their subscription model to make sure it is truly working for their customers and their bottom line. Refine pricing models. Plan for the future.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

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

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?

Benchmarks 40

Benchmarks Business Model Acquisition Subscription 40

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Especially if you’re trying to get ahead in today’s highly competitive SaaS and subscription markets.

Pricing 52

Pricing Subscription Payment Features Strategy 52

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

OPEXEngine

JUNE 23, 2021

The CAC Payback Period, also known as Months to Recover Customer Acquisition Cost (CAC), measures the number of months of subscription revenue it takes to recover the costs to acquire one customer. This metric is one of the many ways to look at the capital efficiency and profitability of a SaaS business.

Benchmarks 52

Benchmarks Acquisition SMB Subscription 52

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. But sales looks more like customer success in a PLG business.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Andreessen Horowitz

AUGUST 22, 2023

Investors often use 3x LTV:CAC as a rough benchmark of a consumer company’s financial health. If your customer lifetime value (LTV) is 3 or more times your customer acquisition cost (CAC) within 5 years, that means your company has efficient returns on sales and marketing spend. and thus COGS (cost of goods sold) structures.

Customer Lifetime Value 75

Customer Lifetime Value Benchmarks Investment Metrics 75

ProfitWell

DECEMBER 9, 2019

From the rise of SaaS to the sudden glut of subscription boxes, the subscription business model has never been more popular. So much so that Gartner research predicts that in 2020, all new entrants to the software market and 80% of existing companies will offer some sort of subscription package. Do your research.

SaaS Payments 61

SaaS Payments Payment Services Subscription Payment Features 61

OPEXEngine

AUGUST 31, 2021

High customer acquisition costs, like some low conversion rates, shouldn’t automatically be considered a bad signal. Although any CFO would like to pair low customer acquisition costs (CAC) with high lifetime value (LTV), instances in which these metrics move in opposite directions aren’t necessarily bad.

Metrics 52

Metrics SaaS Acquisition Business Model 52

OPEXEngine

NOVEMBER 17, 2020

Customer Acquisition Cost (CAC). Especially now, since the onset of the pandemic, most companies have shifted some acquisition resources to customer retention—especially in 2020, look at what was spent on acquiring new customers and back-out anything that doesn’t apply. But this company had more of an enterprise sales model.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

OPEXEngine

MAY 18, 2021

ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. When calculating this metric, it is important to only use contracted recurring revenue and not one-time payments from services or any other one-time payment. . Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

CustomerSuccessBox

JUNE 30, 2022

This eventually translates into the importance of keeping track of the User Adoption Rate , especially when you’re running a subscription-based business model. Which acquisition channels have the highest adoption rates? User Adoption Rate benchmarks in SaaS. What is User Adoption?

Business 52

Business SaaS Customer Lifetime Value Benchmarks 52

Baremetrics

APRIL 21, 2021

SaaS finance refers to financing options that are specifically designed to assist startup and scale-up efforts for software as a service (SaaS) businesses. Because of the demand for convenience in the digital age, SaaS and subscription businesses are popping up left and right. You may not even have a product yet.

Finance 98

Finance Scale SaaS Forecasting 98

Totango

AUGUST 25, 2022

For software service providers, customer engagement SaaS strategies play a central role in a successful business model. Proactive interactions with your customers can increase satisfaction and retention, driving repeat business and referral revenue. Balancing Customer Acquisition Costs and Lifetime Value.

Engagement 96

Engagement Strategy SaaS Scale 96

User Pilot

MARCH 14, 2023

However, before we dive into different techniques you can use to drive conversions and analyze some successful examples, we look at the upsides and downsides of using the freemium model along with some useful benchmarks. With greater awareness come lower customer acquisition costs and a larger customer base.

SaaS 94

SaaS Onboarding Benchmarks B2B 94

Point Nine Land

MARCH 18, 2019

The SaaS component should also be able to operate as a standalone tool, which is becoming increasingly tricky as the number of SaaS tools available continues to rise and customer acquisition costs skyrocket. In certain cases, it can even become a core revenue driver of your business with the marketplace acting as the hook to acquire users.

Marketplace as a Service 50

Marketplace as a Service Payment Features Scale Pricing 50

ProfitWell

NOVEMBER 11, 2019

Customer churn is the silent killer of the subscription business. With rising customer acquisition costs (CAC) over the past five years and more market competition than ever, anything you can do to keep customers around longer is vital to your business. The various causes of churn for subscription businesses.

Churn 40

Churn B2C Benchmarks Software Review 40

Practical Advice on SaaS marketing

FEBRUARY 7, 2011

Unfortunately, in most cases neither that metric nor that benchmark are very useful for SaaS providers. SaaS marketers are usually better off with a metric more appropriate to the unique SaaS business model: marketing spend as a percentage of the lifetime value of the customer.

Marketing 100

Marketing SaaS Benchmarks Acquisition 100

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. ARR is exactly what it says it is – Annual Recurring Revenue and is straightforward to measure. CAC : Customer Acquisition Cost. ACV : Annual Contract Value.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

OPEXEngine

FEBRUARY 22, 2022

Instead, SMM SaaS companies will leverage Inside Sales and Channel Partners coupled with digital marketing to drive down Customer Acquisition Costs. This strategy allows for a portfolio approach giving the company more flexibility in managing its Customer Lifetime Value (CLTV)/Customer Acquisition Cost (CAC) ratio. Direct Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

User Pilot

OCTOBER 31, 2022

Engaged users keep using your product for a long time, which increases revenue and helps you minimize customer acquisition costs. So your best bet would be to observe your users for a while to create a benchmark and then compare the data with individual users. Userpilot has 3 different subscription packages : $249 for Traction.

Engagement 94

Engagement Metrics Strategy Churn 94

ChurnZero

MARCH 18, 2022

Yours is, you have a super low Customer Acquisition Cost (CAC) so you can justify that with the super high churn. If they don’t get 150% NRR, then it actually breaks the business model. To me, you should have a narrative about what your business model is. A [Dave]: Yeah, in general. What’s your NRR?”

Customer Success 98

Customer Success Metrics SaaS Banking 98

FastSpring

AUGUST 11, 2020

The way we purchase products is changing—and so are our business models. When it comes to software and online purchases, those transactions are increasingly moving to a subscription-based model, where customers put their purchases on autopilot so they can have continuous access to SaaS products. The best part?

Payment Features 85

Payment Features Payments Payment Methods Subscription 85

ProfitWell

OCTOBER 16, 2019

Why is it so hard to define an average churn rate—and what does that mean for your subscription business? Zuora’s 2019 Subscription Economy Index reports average customer churn rates across a number of different industries, ranging from Business Services on the low end (16.2% Let’s find out. customer churn rate).

Churn 55

Churn SaaS Payments Payments Payment Methods 55

Baremetrics

MAY 7, 2019

After seriously considering an acquisition offer, Wistia decided to take on $17.3M The best representation of what bootstrapping means today is starting and growing a business with minimal resources. Bootstrapping purists insist on only using revenue from customers to fund the business. Buffer spent $3.3 Series C and beyond.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

Baremetrics

JANUARY 24, 2021

Anyone managing a SaaS or subscription business is aware of customer churn. The benchmark customer churn for SaaS for SMBs is 5%. We knew if we wanted to keep our business growing, we needed to figure out why so many customers were leaving, and provide the value-add they need to stay.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

OpenView Labs

JANUARY 29, 2020

How to optimize your freemium model. Stories of ditching a freemium model. When is freemium the right strategy for your business? Is Freemium The Right Business Model? Is freemium an effective lead generation, conversion, and revenue driving strategy for your recurring revenue-based business?

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

OPEXEngine

JULY 28, 2020

It then laid out a careful strategy to transform Adobe, largely via M&A, into a company offering cloud-based subscriptions that would “give everyone everything they need to design and deliver exceptional digital experiences.” Subscription-based delivery from the cloud was a much more efficient solution than sending out CDs.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

CustomerSuccessBox

NOVEMBER 9, 2021

The SaaS Business Model. This is referred to as “Software as a Service” Imagine that a customer signs for a 24-month subscription, the SaaS vendor will not be able to recognize the revenue of these 24 months when the subscription starts. But the SaaS vendor must pay all its expenses on acquisition right away.

Business Model 52

Business Model SaaS Business Software Review 52

Practical Advice on SaaS marketing

JULY 9, 2016

There are certainly plenty of surveys and published benchmarks on SaaS metrics that try to provide guidance. For example, it’s tough to make the SaaS business model work when attrition exceeds 10 percent. Use caution with rules of thumb But you should be careful not to take these SaaS benchmarks as gospel.

Benchmarks 100

Benchmarks Metrics SaaS Acquisition 100

Sales Hacker

SEPTEMBER 4, 2018

This metric is the opposite of churn and shows how much existing customers are upgrading their subscriptions or signing up for additional services. Often booked as part of Customer Acquisition Costs, this metric computes the total costs in terms of time and money required to onboard, train, and support customers using your product.

Customer Success 56

Customer Success Scale Technical Review Systems Review 56

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Think of these metrics less as numbers on a screen and more as indicators of business health. Churn is the make or break of your subscription business. Without these, you won’t know how you’re faring. Churn rate.

Subscription 85

Subscription Payment Features Metrics Business 85

Baremetrics

APRIL 6, 2021

An in-depth study on everything you need to know about subscription marketing, and how Baremetrics features are designed to help you navigate the subscription economy. For marketing a subscription business, it’s critical to find loyal new customers and reduce churn. 1 What is Subscription Marketing?

Subscription 59

Subscription Payment Features Marketing SaaS Payments 59

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. This could consist of renewing their subscription or upgrading their current plan to a higher tier. Automation.

Metrics 92

Metrics SaaS Customer Lifetime Value Retention 92

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. MRR as a SaaS metric is pretty straightforward , but there are some nuances that you'll want to take into consideration depending on your business model. Table of Contents. 1 What is MRR Growth Rate?

Benchmarks 98

Benchmarks SaaS Payments Payments Churn 98

The Marketing & Growth Hacking Publication

FEBRUARY 21, 2019

Ratings represent obvious trust signals and an absence of, or negative, reviews could kill your marketing app acquisition strategy before you’ve even begun. They offer app store page audits, A/B testing for your page and comprehensive ASO analytics and benchmarking. Your review presence will also have a big impact.

Mobile 40

Mobile Marketing Growth Hacking Technical Review 40