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When SaaStr Fund made the first investment in RevenueCat back in 2018, nobody could have predicted that this “simple API for managing in-app subscriptions” would become the infrastructure powering 33% of all mobile subscription apps and reach a $500M valuation in 2025. ” required weeks of developer time to answer.
Here’s some additional data on their products I mentioned above (all copy / pasted from the S1) FigJam : “FigJam is our product tailored for ideation, brainstorming, and rapid communication of ideas. .” Access to Figma is sold as an annual or monthly subscription, per seat.
API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing. Anthropic’s focus on AI safety creates trust with large enterprises handling sensitive data.
By focusing on optimizing your net revenue retention rate in addition to ARR, you can supercharge revenue, reduce customer acquisition costs, and even boost your valuation. If you’re looking for a payment services provider and merchant of record to help you grow your subscription business, we can help. Active subscriptions.
In this post, I’ll take a data-driven approach in evaluating the overall group’s performance, and highlight individual standouts along the way. Let’s get into some high level data. Of course, the above chart shows historical (ie lagging) data. The median beat was ~2.2%
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. The SMB sales team was incentivized purely on logo acquisition rather than revenue.
annualized subscription dollar retention rate. subscription dollar retention, but this was still problematic. As one analyst noted at the time, they were “losing money on acquisition, breaking even on conversion, and only making money on the 3rd term” — a unsustainable model requiring 88% revenue retention just to work.
By Inga Broerman How Industry Consolidation is Reshaping Subscription Billing The subscription economy is on a path of rapid growth and transformation, projected to reach a $3 trillion valuation in 2024. These insights empower businesses to make data-driven decisions and adapt to market changes quickly.
TL;DR: More mobile apps are monetizing by selling subscriptions on their websites to drive user acquisition, keep more revenue, and own their user relationship, especially now that steering iOS users to your site is allowed in the US. What are Web Subscriptions? Why Should Mobile App Companies Offer Web Subscriptions?
What if you could boost revenue without having to invest a small fortune in new customer acquisition? Start by mapping out the key stages in the journey, for example, awareness, acquisition, activation, adoption, retention , and revenue. You can then visualize the data as trends, funnels, paths, and heatmaps.
Adding complementary products or services can double your revenue potential without requiring new customer acquisition And a few more interesting learnings: 6. Subscription revenue has accelerated to 31%. Scheduling Pro leverages real-time customer data to demonstrate availability and improve efficiency. Accelerating at Scale.
By Inga Broerman The 2025 Blueprint for Scalable Growth in the Subscription Economy The subscription economy is entering a pivotal year. To succeed, subscription-based organizations must embrace smarter, more integrated approaches to billing, management, and strategy.
By Inga Broerman How High-Performing Subscription Businesses Maximize NRR For subscription-based businesses, Net Revenue Retention (NRR) is the ultimate measure of growth and sustainability. High-performing subscription businesses use NRR as a growth engine , ensuring that renewals and expansions outpace any losses from churn.
You might be surprised to know that SaaS companies can learn a lot from their consumer subscription counterparts. 4: High-end sales teams Increasingly, SaaS organizations leverage inside sales teams, since selling subscriptions is easier and less of a commitment than selling enterprise software. 3: Make onboarding seamless.
By Inga Broerman Building a Competitive Edge Through Channel Partnerships In an increasingly competitive subscription economy, channel partnerships have become a beacon for businesses seeking scalable growth and sustainable revenue streams. For smaller players, the stakes are high.
SaaS operates on a subscription model, making it easier to manage cash flow and reduce upfront expenses. From CRMs to payment processors, you can connect your favorite tools to create a seamless, customized workflow that boosts efficiency and data accuracy. Add users, expand features, and upgrade plans without switching systems.
Unlike traditional businesses, most SaaS businesses operate the subscription pricing model. For instance, satisfied customers are more likely to renew their subscriptions month after month with a subscription-based streaming service. What does customer satisfaction look like for SaaS businesses?
SaaS accounting is the process of recording, evaluating, and interpreting the financial data and information of your SaaS business to understand your overall financial health, growth momentum, and profitability, and make informed decisions about further steps.
Before reaching out, your team assesses prospects to see if they align with your ideal customer profile (ICP) based on available data. Setting quotas too high can lead to a flurry of new customers who arent well-qualified, driving up acquisition costs without much payoff in terms of long-term retention. But how do you do that?
For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurring revenue (MRR) is one of the most important metrics subscription businesses should be aware of. It can also be used to calculate the customer acquisition cost (CAC) and gross margin.
Scaling Operations: As the customer base grows, the company refines its pricing strategy to optimize customer acquisition costs and lifetime value. Zoom complemented this initiative with data-driven insights from conjoint studies and iterative testing, ensuring that its new pricing structure resonated with customer needs.
But in a subscription economy, the reality is that its far more than that. Use customer health scores, product engagement data, and CS insights to qualify expansion opportunities – the same way you would a net-new deal. Poor GRR increases customer acquisition cost (CAC) because it forces you to constantly replace lost revenue.
But just becausae your installed base isn’t leaving, doesn’t mean you new customer acquisition hasn’t already materially slowed due to AI competitors. “We need to see more ROI data” doesn’t work when your competitors are creating entirely new value propositions that make ROI comparisons irrelevant.
It’s what you do with the behavior data your app collects. And by behavior data, I dont mean installs (thats the easy part). Mobile app tracking captures data on how users interact with your app, including actions such as screen views, button taps, session length, and feature usage. What is mobile app tracking?
Acquiring new customers is significantly more expensive than retaining existing ones, with studies showing that customer acquisition costs (CAC) can be five to 25 times higher than the cost of keeping a current customer. Regularly reviewing usage data can help in identifying churn patterns and provide metrics for actionable insights.
A powerful CRM helps organize customer data, streamline sales pipelines, and automate marketing ultimately boosting revenue. Through numerous acquisitions (ExactTarget, Tableau, Slack, and more), Salesforce built an expansive ecosystem of cloud services. Add-ons like Tableau CRM for big data analysis. Trusted by enterprises.
Greenhouse Best ATS for Data-Driven Recruiting Pricing: Key Features: Ideal Use Case: 7. Are applicant tracking systems secure and compliant with data privacy laws? This model offers easy accessibility (anywhere, anytime), automatic updates, and lower upfront costs (subscription-based pricing).
SaaS solutions transcend industries and functions, offering tools from payment processing to data storage. Its subscription-based model ensures flexibility and scalability, allowing organizations to easily adapt to evolving demands and access cutting-edge AI capabilities. What is AI SaaS?
Effective customer churn prediction relies on data. Many product teams focus on new customer acquisition but ignore the cost of losing customers they’ve already paid to acquire. With customer acquisition costs rising and retention driving most of your customer lifetime value, ignoring churn is a fast track to stalled growth.
Instead of prioritizing new business acquisition, CLG turns existing customers into a primary source of revenue. Product-led growth (PLG) is a growth strategy where the product itself is the main driver of customer acquisition, retention, and expansion. But there’s something else you can see in the data. Yes and no.
Incorporating strong security measures within integration layers protects data during transit, while regular evaluations and optimizations of integration points help maintain low latency and high availability as systems scale. .” – Tatevik H.,
Consistent outreach, targeted messaging, and a clear value proposition will drive customer acquisition and fuel your growth. Subscribers who will stick around, renew their subscriptions, and expand their usage over time are the most valuable customers in SaaS. To grow your subscriber base, you need strong marketing and sales.
Refining Pricing Strategies Product-level revenue analysis provides the data needed to refine pricing strategies. The analysis reveals that a particular product has a high customer acquisition cost but contributes significantly to overall revenue. Another example is a SaaS company offering multiple subscription tiers.
The true costs lie beneath the surface, encompassing vast dataacquisition, meticulous data cleaning and preparation, massive storage needs, intensive model training, specialized talent acquisition, and ongoing maintenance and updates. Data-first approach: Recognize that data is the fuel for AI.
price uplifts at renewal with no changes to subscriptions. HubSpot : Industry observers expect continued incremental price increases throughout 2025, particularly as HubSpot integrates recent acquisitions like Clearbit (now Breeze Intelligence) and Cacheflow into their platform. percentage points of the 11.2% per user (6.7%
Customer teams have more data at their fingertips than ever before. What do our CS leaders and teams do with mountains of historical, behavioral, and customer journey data? Weve outlined a process for data driven customer success renewals forecasting, plus some extra tips on how ChurnZero can help. Where can you start?
Track your campaign performance easily by combining your brand's data with influencers' engagement stats for a clear picture of your ROI. It's also powerful to be able to segment your list based on any data point in your CRM. It has built-in monetization options, including paid subscriptions and an ad network.
Areas with the greatest data are those that are furthest developed” – Mike Levy (CRO of SalesIntel) Mike’s comment underscores the fact that while AI is rapidly advancing, there’s still much to learn, and the most progress is happening where data is abundant. GTM 117: From 0 to Acquisition in 3.5
For sales teams, its a struggle to close without having relevant data or contacts. This is especially true for B2B businesses where sales cycles can take months (making customer acquisition even more expensive). Rather, you can send customer data to the system theyre already using (be it Salesforce or HubSpot) via integrations.
Using customer retention cohort analysis, you can track the percentage or number of customers from a specific group who still have active subscriptions over time. Start by setting specific user acquisition targets to hit with your penetration pricing, but don’t stop there.
Special thanks to Jason Saltzman and Live Data Technologies for sharing access to real-time job change data for over 88 million professionals, revealing critical trends across customer success and go-to-market teams. Despite fluctuations, the data shows steady growth in the importance and demand for CS roles. Is itpre-sales?
First IPO in 1999 First acquisition for $5.3 What Salesforce Really Bought (And Why It Matters) This isn’t just about data pipes. “Boring” Infrastructure Can Be More Valuable Than Sexy Apps Data management isn’t glamorous, but it’s essential. Informatica acquired for $8 Billion!
By Inga Broerman The Renewal Blind Spot: Where Subscription Businesses Lose the Most Revenue Renewals should be a source of predictable, recurring revenue yet for many subscription businesses, they are a pain point filled with inefficiencies, missed opportunities, and revenue leakage. Delayed payments and unpredictable revenue.
Industry data shows that when it comes to marketing spending, 82% of companies agree that it’s cheaper to invest in retention than acquisition. By integrating a payment gateway into your mobile app, you can streamline the payment process and make it more convenient for customers.
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