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

JUNE 12, 2016

The acquisition frenzy continues in SaaS. billion, which prices the business at 8.1x 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.

Acquisition 100

Acquisition Startup Banking Benchmarks 100

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 91

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 91

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

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?” It now matches sales and marketing spend at the average SaaS company as folks continued to put significant investments into R&D during the pandemic.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

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? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals.

Pricing 52

Pricing Subscription Payment Features Strategy 52

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.

Benchmarks 111

Benchmarks Startup Sales Hiring Compensation 111

Clouded Judgement

APRIL 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 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The market is clearly pricing in lower rates + reacceleration of growth. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

Tom Tunguz

AUGUST 26, 2014

HubSpot’s target customer base are SMBs and with this price point, it’s possible to support a profitable inside sales model if the team is very efficient. To grow at that pace, HubSpot has been investing aggressively in sales and the company is widely respected for its content marketing prowess. Field 2011 2012 2013.

Benchmarks 111

Benchmarks SMB Metrics SaaS 111

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.

SaaS Payments 89

SaaS Payments Payment Methods Payment Solutions Payments 89

Clouded Judgement

DECEMBER 20, 2022

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 130

Cloud Software Review Software Benchmarks 130

ChurnZero

JUNE 9, 2023

This will help the finance team relate proposed investments aimed at supporting renewal with business growth. A healthy benchmark is a 95% renewal rate in a given period. A healthy GRR industry benchmark is 80-85% while high-performing SaaS companies often reach 90%. A healthy benchmark is 100% NRR or greater.

Finance 98

Finance Metrics Customer Success Headcount 98

Stax

FEBRUARY 21, 2024

By analyzing the SaaS Magic Number, SaaS companies can determine how well their revenue-driving investments (in sales, marketing, and customer retention) are translating into actual revenue growth. It helps businesses understand the effectiveness of their customer acquisition and retention strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

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. The company went public in 2013 and we’ll use data from their S-1 through 2013 to benchmark the business.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

SaaSOptics

AUGUST 11, 2022

So far this year, only 42 companies have priced IPO offerings. Option 3: Mergers and acquisitions. Instead of selling the business or raising another funding round, a merger or acquisition of another company could be a strategic next step in your growth journey. Reevaluate your billing and pricing models. It just works.

Scale 97

Scale Scaling Technical Review Venture Capital 97

Tom Tunguz

NOVEMBER 16, 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. The incredible consistency of the gross margin might indicate the company actually manages pricing to this metric.

Benchmarks 100

Benchmarks Underperforming Technical Team Metrics Sales Hiring 100

OpenView Labs

MAY 24, 2021

In OpenView’s 2020 SaaS benchmarks , we pointed out that public markets were starting to take notice of product-led companies. Hint: You have to look beyond the website or pricing page. Like OpenView’s coverage of SaaS metrics and benchmarks? PLG is more of an acquisition channel than a company-wide strategy.

Scale 98

Scale Headcount Sales Hiring Benchmarks 98

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. This finding doesn’t come as a major surprise.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

User Pilot

APRIL 29, 2024

Ultimately, with customer acquisition costing up to 7 times more than customer retention, ensuring your customers renew their subscriptions is central to your business’ success. There’s no hard and fast rule for SaaS renewal rates – the exact number might vary depending on your industry, pricing, and product.

SaaS Payments 76

SaaS Payments Business SaaS Payment Solutions 76

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources.

Scale 102

Scale Sales Hiring Metrics Sales 102

OPEXEngine

JANUARY 30, 2020

More capital invested, more SaaS offerings, continued expectations of rapid growth are running smack into limits on the availability of qualified employees and a potential economic slow-down which may or may not happen. was invested in the US alone by VCs in 2019. Not all of that will be reinvested, but a lot will. billion in 2019.

Sales Hiring 49

Sales Hiring Benchmarks SaaS Acquisition 49

OPEXEngine

MARCH 10, 2020

Finally, as I’ll explain in a more detail below – having a higher gross margin gives you space to invest. That investment could be in marketing to acquiring new customers, but also in product development, improving your existing products or developing new ones to further strengthen your position in the market. Gross Margin Benchmark.

Payment Methods 59

Payment Methods Scale Benchmarks Payments 59

OPEXEngine

JANUARY 25, 2022

With 331 SPAC deals enthusiastically closed in 2021, and the collective pool now trading on average 42% below purchase price— we are living in a far different landscape of capitalization opportunities than we were this time last year. Investment Scrutiny. But it’s not all bad news. . Speed to Market. G&A Spend in IPO Year.

Venture Capital 52

Venture Capital Cybersecurity Forecasting Finance 52

Baremetrics

MAY 4, 2021

This way of predicting financial outcomes can help decision-makers understand make forecasts based on the relationships between prices and costs, supply and demand, and other factors that affect each other. This can help you figure out how your operation compares to other similar businesses, and you can use this method for benchmarking.,

Forecasting 98

Forecasting Benchmarks Finance Subscription 98

OPEXEngine

MAY 18, 2021

Contracted expansion revenue i.e. add-ons or upgrades that affect the annual subscription price of the customer should be included. . Conversely, EBITDA is more highly valued for a $500M company than for a $5M recurring revenue company were investing in Sales & Marketing, and systems to scale the business are critical to future success.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OpenView Labs

JANUARY 19, 2022

Product-led growth (PLG) is an end-user-focused growth model that relies on the product as the primary driver of customer acquisition, conversion, and expansion. This can sometimes be the toughest step of the user journey for early startups to tackle, especially if they don’t invest in design or messaging. Web design. Web design.

Scale 72

Scale Underperforming Technical Team Sales Hiring Marketing 72

Totango

AUGUST 25, 2022

Balancing Customer Acquisition Costs and Lifetime Value. 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). Once you’ve landed a new customer through acquisition, the goal is to promote further expansion.

Engagement 97

Engagement Strategy SaaS Scale 97

OpenView Labs

FEBRUARY 2, 2021

With last year in the rearview mirror, we can look at OpenView’s 2020 Expansion SaaS Benchmarks Report to tell us how exactly COVID-19 impacted SaaS companies. Here’s why: PLG is an end user-focused growth model that relies on the product itself as the primary driver of customer acquisition, retention, and expansion.

Product Marketing 58

Product Marketing Trends Scale Marketing 58

OPEXEngine

JUNE 11, 2020

At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. SaaS companies have to focus both on new customer acquisition as well as retaining and delighting customers throughout the customer relationship. In addition, it affects cash flow.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

OpenView Labs

MARCH 30, 2020

With all of the data sources and benchmarks out there today, it’s understandably easy to get obsessed with tracking your business’ performance. Any sort of churn helps you to understand if your product is providing value for your customers, if it’s priced fairly, if you’re targeting the right market segments and so much more.

Benchmarks 54

Benchmarks Technical Review Churn Scale 54

OPEXEngine

AUGUST 9, 2022

By benchmarking critical go-to-market KPIs, like the Magic Number – which measures how many new dollars of revenue growth are obtained getting from your sales and marketing investment compared to your competitors. After a series of acquisitions, the company’s sales force was underperforming. Automate account management.

Scale 59

Scale VP of Engineering Payment Services Underperforming Technical Team 59

ProfitWell

SEPTEMBER 30, 2019

Revenue optimization is a combination of pricing, demand, and marketing strategies used to maximize revenue growth. It involves taking a tactical, analytical approach to your pricing—requiring analysis of your price points, sales channels, and various other areas of your business—in order to maximize it. Pricing decisions.

Revenue 40

Revenue Pricing Outsourcing Services Merchant Services 40

OPEXEngine

FEBRUARY 22, 2022

Being “stuck in the middle” drives SMM SaaS companies to invest in one of two strategies. The first option is to move up the value chain by improving product features, functionality, and quality to maintain Average Selling Price and to compete effectively with higher-end players. Financial Profile of SMM SaaS Companies. Inside Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

Tom Tunguz

JUNE 12, 2014

These four charts contrast sales & marketing investments and revenue growth trends across the three different SaaS startup segments. Presumably, these startups are driven to find more cost-effective means of customer acquisition, like freemium , because the smaller ACVs can’t accommodate larger cost-of-customer acquisition.

Startup 100

Startup SMB Sales Hiring Acquisition 100

Baremetrics

NOVEMBER 2, 2021

To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. Customer acquisition cost (CAC): What does it cost to onboard a new customer? Customer acquisition cost ( CAC ): What does it cost to onboard a new customer? Table of Contents.

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

ChurnZero

MARCH 18, 2022

Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021. Yours is, you have a super low Customer Acquisition Cost (CAC) so you can justify that with the super high churn. Why aren’t you consumption based in pricing?

Customer Success 98

Customer Success Metrics SaaS Banking 98