Sixteen Ventures

APRIL 26, 2023

NRR Defined Net Revenue Retention – NRR – is the percentage of revenue retained from existing customers in a defined time period, including Expansion, Contraction, and Churn. Also called Net Dollar Retention or NDR. When a CS org is focused primarily on customer retention (vs. to “save” the customer).

Headcount 43

Headcount Churn Retention Metrics 43

Sales Hacker

MARCH 1, 2024

The real value of owned media is in building an engaged audience within your customer base and prospects, which can grow the pipeline, assist sales in closing deals, and improve retention. She previously served as the company’s Senior Vice President of Global Marketing, having joined in January 2021 through the acquisition of Exponea.

VP of Engineering 72

VP of Engineering Scale SaaS AI Search 72

Kellblog

NOVEMBER 23, 2022

The next block focuses on retention rates: Net dollar retention = current ARR from year-ago cohort / year-ago ARR from year-ago cohort. As I predicted a few years back, NRR has largely replaced LTV/CAC, because of the flaws with lifetime value (LTV) discussed in my SaaStr 2020 talk, Churn is Dead, Long Live Net Dollar Retention.

Technical Review 116

Technical Review Software Review Forecasting Churn 116

OpenView Labs

NOVEMBER 19, 2020

Similarly, gross and net dollar retention is a strong signal your value proposition is resonating in the market. As public companies continue to raise the bar (the average net retention to go public was 126% in 2020) investors’ expectations climb. So when in doubt, prioritize gross dollar. Spending money to make money.

Headcount 55

Headcount Benchmarks Banking Retention 55

InsightSquared

MAY 7, 2019

At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC). Customer churn or retention rates. Typical SaaS Sales Metrics. Customer lifetime value (CLV).

Scale 102

Scale Sales Hiring Metrics Sales 102

Sales Hacker

JULY 22, 2021

You have to divide your sales quota by revenue streams and customer retention. Customer retention is another divider. An SLA focuses only on new customer acquisition, so we need to exclude sales retention of already acquired customers. Try to work your way around retention metrics to end up with new customer revenue only.

Scale 110

Scale Sales Marketing Metrics 110

OpenView Labs

MARCH 10, 2019

Over this time, our headcount has grown by over 10x, and our revenue has grown by over 60x. Focusing on Customer Success from the very early days of Typeform has been instrumental in improving both retention and acquisition, and has played an important role in our overall achievements. The challenge was retention.

Scale 69

Scale Customer Success Scaling Sales Hiring 69

CustomerSuccessBox

MARCH 9, 2022

In the glorious business of the SaaS space, one underlying truth that determines the growth and scaling of the business is that it takes several months to recover the Customer Acquisition Cost (CAC) and get to the profitable zone at a unit economics level. Automating these processes provides a key advantage for increasing efficiency.

Customer Success 52

Customer Success Scale Customer Lifetime Value Outsourced Development 52

SaaSX

FEBRUARY 28, 2021

Ideally, as a company scales, headcount doesn’t scale exactly in tandem. In the long-run, it’s almost impossible to be a capital-efficient company if your gross retention rate is less than 85%. Consider 90% gross retention and 120% net retention as the gold standard. That’s a revenue treadmill.

Payment Solutions 52

Payment Solutions Software Review Software Payments 52

Intercom, Inc.

JULY 28, 2022

Those line charts showing fast-rising user acquisition or explosive ARR have been synonymous with the industry over the past decade. Growth is arguably the most defining and sought-after trait of technology companies. However, growth is seldom linear, as is all too clear in the current economic climate.

Scale 210

Scale Scaling Sales Hiring Sales Recruiting 210

ProfitWell

DECEMBER 6, 2019

And in this article he explains why, and proposes a different approach to thinking about the optimal CSM headcount to help you build a more effective customer success organization. This acquisition reinforces Sprinklr’s mission to define and lead the customer experience management industry with the world’s first Unified Front Office.

Scale 43

Scale CTO Hire Sales Hiring New CTO 43

Intercom, Inc.

JULY 29, 2021

So your goals in terms of headcount remained stable from pre-pandemic to post-pandemic? But at that level, it’s about more than just adding some headcount to individual teams, you’re building new teams, you’re creating new roles, potentially new reporting lines. We look at our retention rates.

Sales Hiring 223

Sales Hiring Scale Sales Recruiting Underperforming Technical Team 223

SaaStr

MARCH 15, 2024

Customer acquisition. One thing about moving away from paid acquisition to higher quality revenue is it requires a re-emphasis and reinvestment into free. If you try to mine too aggressively from free until they’re paid and before you have that engagement, you will pay for it on the other side with quality and retention.

AI Search 226

AI Search SaaS Advertising Sales Hiring 226

OpenView Labs

FEBRUARY 3, 2022

As investors, we keep a close eye on customer acquisition cost (CAC) payback. We use it as an indicator that a company has the right fundamentals in place to effectively ramp up customer acquisition. Understanding customer and revenue retention is an extremely attractive growth signal for a SaaS company.

Headcount 73

Headcount SaaS Compensation Acquisition 73

OPEXEngine

JANUARY 5, 2021

Customer Acquisition Cost (CAC) is a key SaaS metric that accounts for how much it costs your company to procure each new customer. Low CAC may not look so good if you also have low retention rates. The post Why a Low Customer Acquisition Cost (CAC) Isn’t Always a Good Benchmark appeared first on OPEXEngine.

Benchmarks 52

Benchmarks Acquisition Customer Lifetime Value Scale 52

SmartKarrot

FEBRUARY 19, 2021

Compare this figure with the acquisition cost and document the loss in ROI due to early churn. Compare the cost of acquisition (which would be much higher) with that of investing in building brand advocates. What percent of revenue growth or retention would become an incentive would be worth mentioning here. Quantify outcomes.

Outsourcing Services 10

Outsourcing Services Customer Success Technical Review Business 10

ChurnZero

MARCH 22, 2019

Did you know: For every 1% increase in revenue retention, a SaaS company’s valuation increases by 12% after five years? This was just one of the takeaways from our well-attended webinar this week on- Understanding the Real Impact of Improving Retention and Customer Success Best Practices. Rob: So, this is a profitability point.

Retention 61

Retention Payment Methods SaaS Payments Outsourced Development 61

Intercom, Inc.

JULY 21, 2022

We’ll also hear Andrew Chen, general partner at Andreessen Horowitz, talking about the changing landscape of customer acquisition. “When you have a product that is strong on the organic and word of mouth side of things, driving additional demand through marketing programs is actually quite hard” A bigger acquisition funnel.

Outsourcing Services 215

Outsourcing Services Sales Hiring CTO Hire Acquisition 215

Intercom, Inc.

JUNE 3, 2021

” I think the “Sure thing boss, give me more headcount” is obvious. If you’re a SaaS company, that could be new customer acquisition, it could be an expansion or even reduce contraction, reduce churn. Headcount and salaries and comp and all that kind of stuff. That’s one category.

Strategy 228

Strategy Software Review Development Team Review Sales Recruiting 228

Intercom, Inc.

OCTOBER 29, 2019

For example, our leadership team might decide to focus our company strategy on targeting the segments with the best revenue retention. If your customers tend to be larger, public companies, then segmenting by revenue and size is reasonable, as most report financial results and headcount on a quarterly basis.

Business 184

Business B2C Scale Headcount 184

Intercom, Inc.

APRIL 25, 2019

Or focusing on customer expansion as opposed to new customer acquisition. When I started, Pipedrive had a big growth plan as far as headcount, but they were a little bit looser on processes and cadences. And yet, only 18% of companies are making retention a priority. Each approach exercises a different muscle.

Scale 136

Scale Sales Hiring Sales Recruiting Scaling 136

SaaSOptics

MAY 2, 2022

Many traditional sales-led (SLG) companies are introducing product-led tactics, experimenting with low friction, self-serve models to increase customer acquisition. You can adopt a hybrid approach, break into new markets, capture more market share, and increase retention by giving customers the options they’re looking for.

Scale 97

Scale Sales Hiring Underperforming Technical Team Sales 97

Intercom, Inc.

AUGUST 29, 2019

When I started, they had a big growth plan as far as headcount, but they were a little bit looser on processes and cadences and things like that framework I was talking about. So again, we got aggressive headcount to see the growth, and we put together a plan where we can actually see maybe even a little bit more growth with the same people.

Scale 172

Scale Sales Hiring Scaling Payment Services 172

Chart Mogul

MARCH 10, 2023

But in reality, many PLG success stories leverage traditional inside sales motions alongside self-service to speed up customer acquisition. But in reality, many PLG success stories leverage traditional inside sales motions alongside self-service to speed up customer acquisition. This is called product-led sales.

VP of Engineering 52

VP of Engineering Sales Hiring Sales Compensation 52

OpenView Labs

MAY 5, 2021

Other businesses, like LinkedIn and Netflix, have strong histories of being producers of open-source projects, which provides a strategic recruitment and retention tool for top-tier engineering talent. Related podcast episode: How MongoDB Scaled Their Open-Source Product with a Bottom-Up and Top-Down Sales Motion.

Business 52

Business SMB Scale DevOps as a Service 52

SaaStr

JUNE 16, 2020

Whereas, if companies have a bit higher attrition and retentions less than 80%, the churn could go up to above 16%. inaudible 00:32:31] Some cuts, in this case, the company with 50 AEs, you drop 20 headcount, and then you’re 30. Tableau is an acquisition that Salesforce made a year ago or so. Adnan Chaudhry: Sure.

Sales Hiring 160

Sales Hiring Scale SaaS Payments Payment Services 160

Sales Enablement, SaaS and Growth

JULY 24, 2018

The number of employees when things get particularly troublesome are three, 10, 30, 100, 300 and 1,000 - before company headcount hits these milestones you’ll need to rethink how you operate. LTV:CAC is the lifetime value of a customer divided by the customer acquisition cost. Retention trumps acquisition.

SaaS Payments 131

SaaS Payments Sales Hiring Payment Services Business 131

Kellblog

JANUARY 2, 2024

PE software acquisitions were at roughly pre-pandemic levels in the first three quarters of 2023, though still well below 2021 and 2022 highs. Customer retention came into sharp focus in 2023 and with it a new, balanced view relying on both NRR and GRR as key retention metrics. They’re my funnel for filling AE headcount.

AI Search 109

AI Search Technical Review Technical Advisors ChatGPT 109