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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. On top of that, churn and expansion tend to be quite predictable with low volatility. Why do software companies get “credit” simply for revenue?

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Customer Acquisition vs Retention: What to Focus on for Product Growth?

User Pilot

Which one is better, customer acquisition vs retention? This article will examine customer acquisition and retention and determine which one you should focus on. TL;DR Customer acquisition attracts and converts new customers through marketing and sales efforts to expand the customer base and drive revenue growth.

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SaaS Churn: Myths, Benchmarks, and Strategies to Retain More Revenue

FastSpring

In the language of SaaS, I churned. And the experience got me thinking: Was immediate removal of paid features the best chance to keep me from churning? When did I officially count as “churned”? Did they count me as churned on the day I canceled? In part one, we cover benchmarks and common churn formulas.

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How Revenue Leaders at Box, Calendly, and Lattice Scaled From $0 to $100M+ and Beyond

SaaStr

How do you diagnose and solve churn? Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. Joining Box as CRO When They Had a Churn Issue Mark joined Box four years ago at $600M in revenue and 4-5 years past IPO.

Scale 227
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CRO Confidential: How Customer-First Focus Drives Retention and Revenue With Brex GM of Startups Lucas Fox (Pod 635 + Video)

SaaStr

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 212
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How to Build a Churn Prediction Model to Predict Customer Churn

User Pilot

As your business grows and your focus shifts from acquiring new customers to retaining existing ones, churn prediction becomes an invaluable tool in your toolkit. Accurate churn prediction models help you improve the customer experience and prevent voluntary customer departures. What is churn prediction? Churn is expensive.

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Customer Retention vs Acquisition Cost: Which One Should You Focus?

User Pilot

Customer retention vs acquisition cost: Which metric matters more? Thus, striking the right balance between acquisition and retention costs significantly improves profitability and sustainability. TL;DR Customer acquisition is the process of attracting and converting prospective users into paying customers.