Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn). Is Software Rebounding?

Cloud 177

Cloud Software Azure AWS 177

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.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

Sixteen Ventures

AUGUST 14, 2022

You want NRR to be over 100%, because that means – in theory – you could turn off new customer acquisition and the company wouldn’t just continue to generate revenue, but would actually grow. That is, reduce “logo” churn or, put another way, keep customers from canceling or not renewing. Talk about efficient growth!

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

SaaStr

JANUARY 24, 2024

How do you diagnose and solve churn? So, Dini came in, looked at the data around churn and usage, talked to customers, defined and narrowed Lattice’s core ICP, and made a few changes: They put a minimum in place not to sell to anyone under $4k. So, Calendly decided to invest in going Enterprise.

Scale 231

Scale Sales Hiring Scaling Revenue 231

SaaSOptics

MAY 19, 2022

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. For subscription-based SaaS businesses, your customer acquisition metrics indicate how effectively you acquire new users via sales, marketing, or a product-led approach like a free trial. Plain and simple.

Acquisition 59

Acquisition Scale Strategy Software Review 59

ChurnZero

SEPTEMBER 16, 2022

When a financial slowdown approaches, the smartest businesses look for areas where their investment has the best leverage. In good times, a lot of investments that a company makes are really focused on new sales. Focus on your customers’ top three churn risks. Talent acquisition is way more interesting and way better.

Customer Success 98

Customer Success Investment Churn Retention 98

Clouded Judgement

MARCH 22, 2024

At contract expiration these customers either renew (sign another contract with same annual value), expand (sign another contract with higher annual value), contract (sign another contract with lower annual value), or churn (stop being a customer and spend goes to zero). Altimeter is an investment adviser registered with the U.S.

AI 183

AI Revenue Cloud Technical Advisors 183

Totango

JANUARY 26, 2021

Being proactive about churn prevention provides an antidote to customer attrition. Read on to learn what churn is, how an attrition analysis can help you pinpoint why you’re losing customers, and what steps you can take to prevent customer churn. What Is Churn Rate and How Does It Relate to Customer Retention?

Churn 89

Churn Retention Underperforming Technical Team Technical Review 89

FastSpring

MAY 14, 2019

However, our expectations for the quality of the software continue to grow and outpace any current investments. Here’s how your company can benefit from switching from a perpetual license to a subscription plan. Reason #1: Subscriptions support product innovation. Reason #1: Subscriptions support product innovation.

Payment Features 71

Payment Features Payment Methods Subscription Payment Services 71

Sixteen Ventures

SEPTEMBER 10, 2020

It’s critical to understand why your customers churn, but if you’re relying solely on the reason the customer gives you for that churn, you’re definitely missing the actual reason. It’s easy, but it’s not going to get you the answer you need to keep future churn from happening. Churn: Syntax and Nomenclature.

Churn 131

Churn Customer Success Systems Review Outsourced Development 131

Baremetrics

APRIL 6, 2021

ProfitWell is a cloud-based app that generates real-time financial and subscription metrics for data-driven SaaS enterprises. The recurring revenue growth platform provides users with valuable insights into subscription funnels and one-click analytics for Stripe. But ProfitWell does not benefit all SaaS companies.

SaaS Payments 93

SaaS Payments Payment Services Payments Payment Solutions 93

User Pilot

APRIL 29, 2024

In this article, we examine what makes SaaS renewal management so important and explore renewal strategies for preventing customer churn and increasing upsells. A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. Let’s dive right in!

SaaS Payments 76

SaaS Payments Business SaaS Payment Solutions 76

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 96

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 96

Baremetrics

MARCH 7, 2021

Read what you should know about subscription management and why it is important in recent times! Many products and services online are beginning to adopt subscription-based systems for their billing processes. Apart from the recurring revenue, subscription billing systems also offer appreciable stability to businesses.

Payment Features 45

Payment Features Merchant Services Payment Methods Payment Solutions 45

Clouded Judgement

DECEMBER 21, 2023

It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 177

Cloud Software Benchmarks Retention 177

Neil Patel

APRIL 12, 2021

They offer some of the best-known subscription boxes around, reflecting an increasingly popular (and potentially lucrative) business model. Why Should You Launch a Subscription Box? According to MarketsandMarkets , the subscription and recurring billing market will grow to around $7.8 Recurring Business Revenue.

Outsourcing Services 123

Outsourcing Services Payment Methods Subscription Payment Features 123

ProfitWell

JUNE 27, 2019

From CRM software to coffee beans, shaving blades to designer gowns, recurring billing is the lifeline for every subscription business. It’s easy to see why—automatic charges for subscriptions are simple and convenient for customers and predictable and sustainable for companies. What is recurring billing?

Merchant Services 76

Merchant Services Payment Features Payments SaaS Payments 76

User Pilot

MARCH 25, 2024

Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. As this investment is expensed in SDE/EBITDA, the metrics often equal zero. The metric is used by companies with quarterly or yearly subscription plans.

SaaS 92

SaaS Customer Lifetime Value Acquisition Metrics 92

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Know your numbers.

Acquisition 52

Acquisition Startup Technical Review Scale 52

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? At the same time? The product becomes your sales team.

Scale 265

Scale Sales Hiring Sales Marketing 265

User Pilot

MAY 2, 2024

It’s crucial for SaaS businesses because it drives revenue growth, increases customer lifetime value , reduces customer acquisition costs , and fosters positive word-of-mouth marketing. Key metrics to measure customer retention include customer retention rate , customer churn rate , customer acquisition cost, and customer effort score.

Retention 59

Retention Metrics Strategy Scale 59

SaaStr

DECEMBER 27, 2020

New Relic’s net negative churn / net dollar retention has dropped to 98% in the last quarter, despite a record 77% of revenue being from the enterprise. If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead. It’s the secret to scaling effectively.

Scale 304

Scale Outsourced Development SMB Cloud 304

Clouded Judgement

SEPTEMBER 12, 2023

Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 169

Cloud Software Benchmarks Retention 169

ProfitWell

OCTOBER 16, 2019

It’s the question on every SaaS founder’s lips: Is my churn rate too high? A “good” churn rate for one company might be terrible for another. Worse, comparing average churn rates across different markets and industries will leave you mired in confusing statistics and contradicting studies. What is the average churn rate?

Churn 55

Churn SaaS Payments Payments Payment Methods 55

SaaStr

NOVEMBER 14, 2023

Then, we moved to a more customer-friendly model with SaaS and subscription-based pricing. That way, they know what growth to expect and what incremental uplift they’re getting from having sales involved so they can continue to make better investments. The first might be market acquisition. The lines will blur.

Compensation 164

Compensation Sales Azure AWS 164

CustomerSuccessBox

JUNE 8, 2022

The capacity to forecast that a specific customer is at a high risk of churning while there is still time to do something about it is a major new possible revenue generator for any company. We, at CustomerSuccessBox , spoke to some of the Top Customer Success Influencers to know how they manage churn! Q: Please introduce yourself.

Churn 52

Churn Management Systems Review Onboarding 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

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period. The result is your average CAC.

Acquisition 63

Acquisition Retention Social Media Advertising 63

Baremetrics

SEPTEMBER 15, 2021

The growth of active users Changes in Monthly recurring revenue (MRR) Churn Rate Expansion MRR See all of your financial data with Baremetrics. If you’re considering whether or not to invest money in a certain area of business, you might want to look at how that area of business is growing. What is a Growth Rate?

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

User Pilot

FEBRUARY 28, 2024

There are various metrics to track the customer path, such as: Awareness stage metrics Acquisition stage metrics Activation stage metrics Adoption stage metrics Retention stage metrics Revenue stage metrics Referral stage metrics To create a successful customer path, follow the steps below: Conduct user path analysis to identify the happy path.

Customer Lifetime Value 91

Customer Lifetime Value SaaS Software Review Acquisition 91

SaaStr

JUNE 5, 2020

With the Salesforce IPO in 2004, we saw the first sign that institutional investors were comfortable with a standard set of SaaS metrics: Churn, sales efficiency , ARPU, LTV, customer acquisition cost , and so on. . It’s no longer viable for financial capital to invest in the next CRM or sales automation tool. Gross margin 85%?

Venture Capital 222

Venture Capital Technical Review SaaS Scale 222

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

Tom Tunguz

OCTOBER 15, 2013

Churn, masked by growth, becomes a limiting factor of growth. How much should the business invest in managing churn? Our SaaS benchmarks from earlier this week tell us the average public SaaS company has a 3% monthly revenue churn or a 2 year lifetime and a sales efficiency of 0.8,

Churn 100

Churn Startup Management Scale 100

OpenView Labs

FEBRUARY 5, 2019

A recent study by Invesp found that 44% of SaaS companies are focused on customer acquisition, as opposed to just 18% that are focused on customer retention. Before there is time for customers to churn it’s just about adding in as many new customers as you can. Customer churn: A customer who does not renew (a canceled customer).

Churn 66

Churn Revenue SaaS Acquisition 66

Clouded Judgement

APRIL 12, 2023

It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn). To calculate implied ARR I take the subscription revenue in a quarter and multiply it by 4.

Cloud 161

Cloud Software Benchmarks Retention 161

Baremetrics

AUGUST 22, 2021

Giving up good clients or failing to collect your accounts receivable is never the solution, we suggest taking a look at how you can prevent involuntary churn and make sure that your sales charts match your cash balance. It can help you keep track of your burn and be focused on churn. What is your churn? Try Baremetrics Free.

Payment Solutions 91

Payment Solutions Payment Methods Payment Services Payments 91

User Pilot

MAY 8, 2023

As the number of software tools and subscriptions increase, so too do the expectations of SaaS customers. Overcoming these hurdles could very well mark the difference between growing your SaaS business or endless customer churn. As important as customer education is, it can often still be overlooked or undermanaged by SaaS companies.

Software Review 94

Software Review Outsourcing Services SaaS Sales Hiring 94