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 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

SaaStr

APRIL 4, 2023

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Find The Balance Between CAC And LTV The achievable lifetime value defines your customer acquisition cost target. Every company is different and will have varying solutions, customer acquisition costs, and lifetime value.

Scale 214

Scale Strategy Scaling Outbound Sales Team 214

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. More customers = more revenue.

Acquisition 59

Acquisition Scale Strategy Software Review 59

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

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 209

Scale Sales Hiring Scaling Revenue 209

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue.

Retention 193

Retention Revenue Startup Sales Hiring 193

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

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 105

Customer Lifetime Value SaaS Software Review Acquisition 105

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 282

Scale Outsourced Development SMB Cloud 282

SaaStr

FEBRUARY 9, 2024

So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? So when you think about acquisition, retention, and expansion, they all revolve around the product capabilities in a PLG motion. The product becomes your sales team.

Scale 242

Scale Sales Hiring Sales Marketing 242

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. Speak to other founders.

Acquisition 52

Acquisition Startup Technical Review Scale 52

SaaStr

JANUARY 22, 2021

A product-led growth strategy relies on the product itself as the primary vehicle for customer acquisition, conversion, retention, and expansion. Pricing strategy based on pay-as-you-go has grown popular. The return on marketing investment is much faster. The churn rate becomes more predictable based on usage sentiment.

Scale 254

Scale New CTO CTO Acquisition 254

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

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 161

Compensation Sales Azure AWS 161

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

Tom Tunguz

OCTOBER 30, 2013

Every SaaS business suffers from churn. If churn isn’t managed properly, the lost revenue from churned customers offsets new revenue and the business flat-lines or suffers negative revenue growth. Each strategy requires different levels of investment but achieves similar results. Revenue Churn as %.

Churn 100

Churn Startup Strategy SaaS 100

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. Price comparison engines.

Acquisition 63

Acquisition Retention Social Media Advertising 63

SaaStr

APRIL 2, 2023

Later on, when we thought a new acquisition of raw technology was ready to scale (it wasn’t – it is now) In 2022 (like many companies), when we misread the “COVID bump” of 2021 for a secular change in software In each case, the mistake wasn’t being aggressive. Invest in back-office systems early. Your new logos grow rapidly.

Sales Hiring 247

Sales Hiring Scale Scaling Customer Success 247

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

AUGUST 7, 2023

CAC stands for Customer Acquisition Costs and measures how much it costs to buy a new customer. Then the Boom happened, and everyone could justify insane investments, and it warped everything. No one gets in right in sales and marketing, but if you can put a little more budget into growth vs. new acquisition, magic can happen.

Metrics 178

Metrics SaaS Sales Hiring Finance 178

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

User Pilot

OCTOBER 29, 2023

WTP helps SaaS companies choose optimum prices for their products to maximize profit. The metric is also used to predict customer churn. The conjoint analysis simulates real-life situations where users have to choose between packages or plans made up of different features and prices. What is the willingness to pay?

SaaS 105

SaaS Interviewing Pricing Market Research 105

User Pilot

MAY 8, 2023

Overcoming these hurdles could very well mark the difference between growing your SaaS business or endless customer churn. A negative product experience will lead to higher churn rates , driving users toward the competition — an issue commonly faced by SaaS companies. moment soon, your marketing expenses could very well go to waste.

Software Review 98

Software Review Outsourcing Services SaaS Sales Hiring 98

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

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

Incredo

JULY 14, 2019

To shed light on your doubts and questions, we have compared and analyzed the pros and cons of these two subscription pricing models , knowing how essential it is for your SaaS success. History of the subscription pricing model: From newspapers to the rise of SaaS subscription. What is the subscription pricing model?

Payment Features 184

Payment Features SaaS Payments Payment Methods Payment Solutions 184

Subscription Flow

DECEMBER 15, 2023

For instance, subscription businesses observe customer retention rates, customer acquisition, and whatnot. As the Subscription Economy developed further, businesses saw that in order to remain competitive in a changing market, they needed to provide individualised experiences, creative pricing methods, and increased customer involvement.

Subscription 59

Subscription Payment Features Healthcare Technical Review 59

Blulogix

JANUARY 5, 2024

Churn Rate Definition: Churn rate, also known as attrition rate, measures the percentage of customers who cancel their subscriptions within a specific period. Importance: A high churn rate can erode your recurring revenue quickly. Monitoring and reducing churn is essential for long-term profitability.

Subscription 52

Subscription Payment Features Payment Services Payments 52

ChurnZero

JUNE 9, 2023

CS team members at all levels would do well to learn about metrics that can better articulate the effect they have on churn, renewals, and expansions. This will help the finance team relate proposed investments aimed at supporting renewal with business growth. Did pricing go up too far? Was it a competitive steal?

Finance 98

Finance Metrics Customer Success Headcount 98

User Pilot

JUNE 6, 2023

While product analytics focuses primarily on what happens inside the product, the focus of marketing analytics is mostly on the ‘outside’ – customer acquisition, conversion , and retention. The purpose of retention and churn analysis is to understand why users stay with the product or leave. Here are the most common benefits.

Data 88

Data User Experience Churn Retention 88

Totango

NOVEMBER 27, 2023

With acquisition costs proving too high in today’s constrained environment, many businesses are finally putting greater focus on nurturing existing customer relationships to ensure retention and expansion. Predicting customer churn or potential customer issues to inform corrective steps to optimize the customer journey.

Trends 91

Trends Customer Success Machine Learning Artificial Intelligence 91

Casey Accidental

NOVEMBER 28, 2023

Most companies have a primary acquisition loop that drives this scalable growth, and unfortunately, there aren’t that many acquisition loops that really scale. And you start being able to acquire more of them in a scalable way i.e. an acquisition loop. It kept investing in making its overall growth model stronger.

Payments 62

Payments Scale Payment Methods Underperforming Technical Team 62

SaaStr

DECEMBER 1, 2021

You should also invest in building a community around your brand. Invest heavily in retention marketing. Many marketing departments get too focused on customer acquisition but forget to market to the customers they already have. . You’ll also want to monitor churn risk closely.

Software Review 222

Software Review SMB Enterprise Software 222

Clouded Judgement

APRIL 12, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

The market is clearly pricing in lower rates + reacceleration of growth. 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).

Cloud 161

Cloud Software Benchmarks Scale 161

Baremetrics

SEPTEMBER 26, 2021

Most SaaS companies keep an eye on churn, but do you calculate both revenue churn and customer churn? Most SaaS companies keep track of their customer acquisition cost (CAC) and customer lifetime value (LTV), but how about your CAC:LTV ratio or months to recover CAC? Cost of customer acquisition (CAC) v.

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Baremetrics

JULY 7, 2021

All the data your startup needs Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. With industry benchmarks, SaaS companies like yours can make effective decisions about strategic resource investments that result in solid revenue and soaring valuations. Want to Reduce Your Churn?

Benchmarks 105

Benchmarks SaaS Payments SaaS Payments 105