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. . The ‘haves’, defined by growing quickly out of the gate and then maintaining 50% or faster revenue growth at significant scale, have seen their valuations skyrocket over the years.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

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. Book the demo to see how!

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

User Pilot

APRIL 29, 2024

TL;DR The SaaS renewal process involves a series of actions on/before the renewal date that lead to a customer’s renewal. A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. Increase monthly recurring revenue.

SaaS Payments 102

SaaS Payments Business SaaS Payment Solutions 102

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. The vendor does not incur the cost of hosting or integrations with other applications.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

User Pilot

FEBRUARY 22, 2024

Retaining customers is an incredibly important part of any growth-driven business. According to Havard Business Review, customer acquisition requires 5 to 20 times more resources than customer retention. Customer retention can help you drive recurring revenue, reduce customer acquisition costs, and drive customer loyalty.

SaaS Payments 52

SaaS Payments Payment Methods Strategy Payments 52

CustomerSuccessBox

OCTOBER 21, 2021

The success of your business goes hand in hand with the success of your customer. For so many years, SaaS has focused so strongly on the acquisition that they have been blind to other aspects of the customer journey. This is highlighted by the fact that the onboarding process is when 50% of the churn happens. million dollars.

Payments 52

Payments Customer Success SaaS Payments Revenue 52

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

BrightBack

JANUARY 17, 2022

But in practice, being best-in-class at digital retention is a key challenge for most startups and enterprises, as it requires significant engineering to connect 3 to 5 systems of record (e.g. In an ideal world, it should be easier and more affordable to retain existing customers than acquire new ones.

Payments 59

Payments Payment Methods Payment Features Payment Solutions 59

Baremetrics

JANUARY 24, 2021

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. We were looking to relaunch the user-driven, SaaS side of our businesses. At 19.20%, we were dramatically off-base.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

User Pilot

AUGUST 10, 2023

How to use relational and transactional NPS data to drive business growth: Segment detractors and reach out to them to offer personalized help. A product adoption platform like Userpilot will enable you to create and trigger surveys contextually across the customer journey and tag responses to identify patterns. an invoicing app.

SaaS Payments 97

SaaS Payments Payment Solutions Software Review Interviewing 97

SaaSX

FEBRUARY 28, 2021

For many startup software companies (and their founders), an early capital-efficient approach to growth can make a huge difference in the long run. It can make the difference between needing to make deep cuts when the business climate gets rocky versus making slight adjustments. Revenue per Employee. What Is Capital Efficiency?

Payment Solutions 52

Payment Solutions Software Review Software Payments 52

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

JANUARY 29, 2020

Product led businesses need to get their products in the hands of would-be users as efficiently as possible–hopefully at near zero CAC. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon. Freemium benchmarks.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

OPEXEngine

JULY 28, 2020

Although the San Jose-based company has always been a leader in developing world-class creative software like Photoshop and Illustrator, its go-to-market model (licensing boxed software) eventually slowed it down. Since 2008, its revenue has tripled and its stock price has soared 14-fold in response.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

Chart Mogul

JUNE 9, 2023

After analyzing data from over 2,100 SaaS startups to publish the SaaS Benchmarks Report 2023 Sid is full of insights on the topic at hand. Logo acquisition is harder: upselling and retention are crucial. Christoph elaborates on how a long-term, strong economic market with low interest rates led to an influx of capital in the system.

Trends 52

Trends SaaS Payments Payment Solutions 52

OPEXEngine

FEBRUARY 22, 2022

Small and Mid-Market (SMM) SaaS Companies serve customers with annual revenues of $1 million to $1 billion and with a typical employee base of 100 to 1,000. An additional non-financial constraint is a fact that these customers typically lack experience in software procurement and implementation, and this adds friction to the sales cycle.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

ProfitWell

NOVEMBER 12, 2019

A pricing audit assesses your subscription business’ pricing process to ensure consistency across similar accounts, maximize profitability, and benchmark against other companies. Conducting a pricing audit goes through five factors—acquisition, monetization, retention, pricing strategy, and discounts. Acquisition.

Payments 45

Payments Pricing Underperforming Technical Team SaaS Payments 45

FastSpring

OCTOBER 25, 2019

If the customer doesn’t stay with the company long enough to at least break even on acquisition costs, it can sink the business. It’s this period, the Customer Acquisition Cost (CAC) Payback Period, that companies need to keep an eye on to maintain profitability. SaaS Industry Benchmarks for CAC Payback Periods.

Payments 64

Payments Scale SaaS Payments SaaS 64

OPEXEngine

NOVEMBER 9, 2021

The contracts are identical twelve-month contracts except for the payment terms. Contract B relaxes payment terms to monthly payment, 12 monthly installments for the next year. The payback period metric doesn’t capture the difference in the quality of the revenue/cash collections.

Sales Hiring 52

Sales Hiring Scale Payments SaaS Payments 52

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. One industrial company, for instance, makes account assignments in a cloud-based sales planning platform.

Scale 59

Scale VP of Engineering Payment Services Underperforming Technical Team 59

Chargify

OCTOBER 21, 2020

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. In fact, if a software company is growing at only a 20 percent rate per year, there is a 92 percent chance the business will cease to exist within just a few years.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

CustomerSuccessBox

MARCH 25, 2021

They’ve moved down your marketing and sales funnel and have finally invested in your software. . Unlike the traditional business model, where once the opportunity is marked closed-won, it’s time to celebrate, but when it comes to SaaS, the acquisition is not the end game. What’s next? Will you let them be on their own?

Retention 52

Retention SaaS Payments B2B Business 52

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. Determine your business goals.

SaaS Payments 61

SaaS Payments Payment Services Subscription Payment Features 61

OPEXEngine

MARCH 10, 2020

Gross margin is a metric that measures your profits as a share of revenue. A higher gross margin or gross margin rate means that you have a highly profitable business. Gross Margin = Revenue – Cost of Goods Sold (COGS). Typically, gross margin is quoted as a percentage of revenue. Gross Margin Benchmark.

Payment Methods 59

Payment Methods Scale Benchmarks Payments 59

ChurnZero

JUNE 19, 2020

It is no secret that customer churn hits recurring revenue businesses hard, but what’s its real impact on their long-term health and valuation? To answer that and more, we invited SaaS Capital’s Managing Director, Rob Belcher, and Software Equity Group’s Managing Director, Allen Cinzori, to join us for a webinar. Q&A Recap.

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

Baremetrics

MAY 7, 2019

Company C was funded by pre-orders from customers, a friends and family round, and then through revenue-based financing for a period of time. After seriously considering an acquisition offer, Wistia decided to take on $17.3M Dictionaries and founders alike can’t agree on the definition of what it means to bootstrap a business.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

ProfitWell

OCTOBER 16, 2019

Some companies report revenue churn, others only share customer or user churn numbers, and often there’s no distinction between whether churn numbers are annual or monthly. I mean, just take a look at all these different surveys: A 2018 KBCM Technology Group survey reported a median annual revenue churn rate of 13.2% Image via Recurly.

Churn 55

Churn SaaS Payments Payments Payment Methods 55

OPEXEngine

JANUARY 14, 2020

Price/Revenue Ratio. Public Software Companies. +8%. Source: SEC filings – weighted average by company revenue. Many factors drive the high-growth of SaaS companies, including higher market adoption of SaaS and the structural advantages of the recurring subscription revenue model – see Why SaaS Companies Grow Faster.

SaaS Payments 59

SaaS Payments SaaS Scale Customer Lifetime Value 59

SaaStr

JUNE 14, 2019

In his most recent role, Dave was the CEO @ Host Analytics where he quintupled ARR, halved customer acquisition costs and increased net retention rates before selling the company to a private equity sponsor. Before that Dave was SVP/GM of Service Cloud @ Salesforce where he led the $500m line of business for customer service applications.

Sales Hiring 141

Sales Hiring Payment Services SaaS Payments Underperforming Technical Team 141

User Pilot

APRIL 24, 2024

TL;DR SaaS renewals includes the process of renewing a subscription to an online-hosted software service. Tracking SaaS renewal rates enables predictable revenue, aiding financial planning and resource management for future growth. In this article, we’ll share everything you need to know for increasing customer renewals.

SaaS Payments 104

SaaS Payments Retention Payment Services Payment Solutions 104

Baremetrics

MARCH 23, 2020

Typically it’s referring to users or revenue lost and is usually represented with either a percentage or dollar amount. Or if you said you had $2,000 in monthly revenue churn, that means you lost $2,000 in monthly recurring revenue from either customer cancellations or downgrades. So, when should you start worrying?

Churn 145

Churn Payment Methods Payment Solutions SaaS Payments 145

How To Buy Saas

DECEMBER 1, 2020

SaaS is a global software solution created by different businesses in order to improve human activities in a matter of clicks. SAAS is also abbreviated as software as a service. SaaS as we already understood is a software as a service. These saas can be either web or app-based or even both. Start Branding.

Growth Hacking 105

Growth Hacking Payment Methods SaaS Payments Payment Solutions 105

wepay

SEPTEMBER 12, 2018

Last time we looked at SaaS and ISV business growth we examined user growth – the core element for success in these businesses. If your customers use your platform more frequently that in turn drives up overall usage and in the end, revenue. In the end, it’s important to remember that engagement = retention.

Engagement 40

Engagement SaaS Payments Strategy SaaS 40

FastSpring

AUGUST 11, 2020

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. In this comprehensive guide, we’re going to take a deep dive into: What is subscription revenue? The best part?

Payment Features 93

Payment Features Payments Payment Methods Subscription 93

All that Saas

MAY 1, 2021

In this roundup, we are going to have a look at some of the best Influencer Marketing Platforms that you can use to connect with the right influencers, manage campaigns, measure analytics, and a lot more. Influencer marketing platforms are a great solution to engage with your audience in the right way. dollars in 2018.

Payments 52

Payments Payment Solutions Payment Methods Payment Services 52

OPEXEngine

JUNE 9, 2020

You may be too busy reacting to the crisis to think about recovery at this moment, but research shows you will want to act before the crisis ends if you want the fastest recovery. Recent survey data from Global Research shows there is an expectation of -20% hit to the 2020 professional services revenue forecast.

SaaS Payments 59

SaaS Payments Payment Services Technical Review Payment Methods 59

ProfitWell

FEBRUARY 26, 2020

Customer retention can hold more weight than acquisition. It’s the leading indicator of your business’ health and key metric to determine its ultimate valuation. What is retention software? Retention software is software that focuses on optimizing user retention and reducing churn. Higher customer satisfaction.

Payment Solutions 52

Payment Solutions Retention Payments Software Review 52