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. But, the ultimate goal for any SaaS business is to translate this perceived value into actual revenue.

SaaS Payments 95

SaaS Payments Payment Methods Payment Solutions Payments 95

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 97

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 97

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 77

SaaS Payments Business SaaS Payment Solutions 77

BrightBack

JANUARY 17, 2022

We started Brightback in 2018 with a vision to automate customer retention for digital subscriptions to improve the consumer experience throughout the journey, deliver measurable revenue ROI to the retention manager via Brightback’s churn deflection funnel, and free up product managers to focus on core services and acquire more customers.

Payments 59

Payments Payment Methods Payment Features Payment Solutions 59

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

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

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

Baremetrics

NOVEMBER 2, 2021

Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1. Monthly recurring revenue (MRR): How much subscription revenue are you bringing in monthly? Churn rate: How quickly are you losing customers or revenue? What is Baremetrics?

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

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 61

Payments Scale SaaS Payments SaaS 61

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. These terms affect revenue recognition.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Baremetrics

SEPTEMBER 15, 2021

For example, you need to calculate the growth rates for monthly recurring revenue (MRR), active customers, average revenue per user (ARPU), and more. Growth rates in population Growth rates in personal financial savings Growth rates in business What is the Growth Rate Formula? Is the amount of revenue increasing?

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

Baremetrics

FEBRUARY 8, 2021

Net Dollar Retention (NDR) is an essential metric for growing SaaS businesses. Though lesser known, it provides deeper insights than Monthly Recurring Revenue (MRR) and Annual Run Rate (ARR). Many companies mistakenly only track these two benchmarks. Your MRR for January ($1,000) doesn't tell you anything about revenue churn.

Retention 88

Retention SaaS Payments Payments Payment Services 88

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

BrightBack

JUNE 30, 2020

Brightback was founded in 2018 with the belief that the growth funnel would soon flip with subscriber retention—not acquisition—being the most important lever for driving revenue growth. At the beginning of 2020, 93% of subscription leaders said that retention would be as or more important than acquisition this year.

Payments 52

Payments Management Payment Methods SaaS Payments 52

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

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. Renewal, payment, happy days. Sid Jain, Senior Analyst at ChartMogul, joins to moderate the discussion.

Trends 52

Trends SaaS Payments Payment Solutions 52

Chargify

OCTOBER 21, 2020

Companies of all types—from startups to long-established global brands—have been able to successfully use subscriptions to facilitate a stream of open-ended, predictable revenue and offer customers the services they want without locking them into inflexible contracts. Provide management with actionable insights to refine operations.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

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

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

CustomerSuccessBox

MARCH 25, 2021

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. So on the day of the acquisition in unit economics terms, you have just incurred a loss. In fact, that is when the customer journey truly begins.

Retention 52

Retention SaaS Payments B2B Business 52

FastSpring

APRIL 16, 2019

The best thing about a subscription program is the reliable revenue it generates. The worst thing about it is that a healthy chunk of that “reliable” revenue is actually pretty unreliable. Customer churn happens when an existing customer stops doing business with you. Remember, every business has churn. What is churn?

Payment Methods 66

Payment Methods Churn Subscription Payment Features 66

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. Customer success is usually staffed by a mix of customer support, sales, and engineering folks contributing some portion of their time to the Cost of Revenue.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

ProfitWell

DECEMBER 9, 2019

Once you’ve put in the time to do your research, it will be much easier to formulate concrete and attainable goals for your subscription business. Determine your business goals. Subscription works best with value-based pricing because it helps you monetize the facet of your company that customers perceive as the most valuable.

SaaS Payments 61

SaaS Payments Payment Services Subscription Payment Features 61

OPEXEngine

OCTOBER 10, 2019

I’m thrilled to be speaking there about SaaS Metrics and Benchmarks. Interested only in recurring payment success, strategy, product and technology, subscriber acquisition or retention? Are you a CEO or leader, marketer, finance and payment, or product and technology professional? Sessions Organized by Topic.

Payment Features 40

Payment Features Subscription Payment Services Benchmarks 40

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

SaaSX

FEBRUARY 28, 2021

In the simplest terms, capital efficiency means growing profitably , without overinvesting to land customers and drive revenue. The rule of 40 states that at scale, a company’s revenue growth rate plus its profit margin should be at least 40. Revenue per Employee. That’s a revenue treadmill. Churn Rate.

Payment Solutions 52

Payment Solutions Software Review Software Payments 52

Baremetrics

MARCH 31, 2021

You can also use retention rate alongside other SaaS benchmark metrics for deeper analysis. How can you improve customer acquisition? Baremetrics' Recover lets you communicate with customers when their cards are due to expire so you can update payment details, improve your retention rate, and optimize your customer retention strategy.

Retention 69

Retention SaaS Payments Payment Methods Payment Services 69

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

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

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

OPEXEngine

JANUARY 14, 2020

Price/Revenue Ratio. 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. Deferred Revenue = Deferred Profits.

SaaS Payments 59

SaaS Payments SaaS Scale Customer Lifetime Value 59

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

JULY 28, 2020

Since 2008, its revenue has tripled and its stock price has soared 14-fold in response. That has helped insurgents like Zalando, the European e-commerce platform based in Berlin, and Paytm, the Indian e-commerce payment system, scale an innovative idea rapidly, allowing them to challenge incumbents and disrupt entire industries.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

OPEXEngine

OCTOBER 23, 2020

Weaker demand, slower sales cycles, and customer insistence on pricing concessions and payment deferrals have conspired to cloud the outlook for many tech companies’ growth. For certain businesses, COVID-19’s impact on revenue was immediate. Forecasting Growth in a Pandemic: A Difficult Job Just Got Harder.

Technical Review 52

Technical Review Scale Payment Services Marketing 52

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? This is also annual payments only. The bigger comment is divorce from contract; it’s just based on payments. If you joined late, we went through definitions.

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

Casey Accidental

JUNE 9, 2020

These plans included a lot of the goals you likely have in your company: improvements in acquisition, activation, and retention. Retention is not only the primary measure of product value and product/market fit for most businesses; it is also the biggest driver of monetization and acquisition as well.

Retention 145

Retention Benchmarks Payments Payment Methods 145

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?

Payment Features 85

Payment Features Payments Payment Methods Subscription 85