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

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 105

Acquisition Startup Technical Review Scale 105

Clouded Judgement

JANUARY 12, 2024

It’s better to come to that realization today than grinding for 2 more years only to realize it then when your cash balance has dried up and all of a sudden you have no leverage in an acquisition. An acquisition at $200m can be life changing for founders, or it can be worth nothing if they raised $250m at $1B valuation back in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Tom Tunguz

SEPTEMBER 20, 2023

Earlier today, Cisco announced its intention to acquire Splunk for $28b , a 30% premium to the closing price. Metric Value Revenue, $b 3.64 This means for every sales and marketing dollar invested the company purchases an additional 60 cents of gross profit in the next period. Revenue Growth 37% Gross Margin 77.7%

Trends 207

Trends Software Review Acquisition Pricing 207

Neil Patel

NOVEMBER 9, 2020

Plus, the price tag on those more established businesses often run into the billions. That’s an expensive mistake if you make the wrong investment. Micro startup acquisitions. But before we dive into that, we need to look into what micro startup acquisitions are and why you need to sit up and take notice. The solution?

Technical Review 144

Technical Review Payment Methods Acquisition Development Team Review 144

Baremetrics

AUGUST 8, 2021

For most SaaS businesses, customer acquisition is one of the most challenging stages of growth. For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

Pricing 111

Pricing SaaS Scale Churn 111

ChurnZero

JUNE 9, 2023

8 metrics to position Customer Success as a profit center with finance While sentiment-based metrics like Net Promoter Score ® (NPS) and customer satisfaction are important, they don’t frame CS work from a financial perspective. To that end, here are the metrics you can use to get started. Did pricing go up too far?

Finance 98

Finance Metrics Customer Success Headcount 98

User Pilot

OCTOBER 5, 2023

Our guide explores: What exactly CAC payback is Why you should be tracking it How to calculate the CAC payback period for your SaaS What other metrics you need to track How to reduce your CAC payback period We also look at how Userpilot can help you do the job. Let’s get right to it! Let’s break them all down.

SaaS Payments 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

SaaStr

DECEMBER 29, 2023

In part two we head into IPO waters, how to incorporate AI into your products, the best way to drive employee performance, pricing models, and much more. Q: How do you stand out in terms of customer acquisition against large competitors who aren’t incorporating AI? Q: As you scale, how metrics-oriented should the company be?

Scale 220

Scale Sales Hiring Customer Success AI 220

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. To calculate the metric, add all 4 of them. As this investment is expensed in SDE/EBITDA, the metrics often equal zero.

SaaS 102

SaaS Customer Lifetime Value Acquisition Metrics 102

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177

Clouded Judgement

APRIL 5, 2024

.” For startups, their valuation follows an arc from pure hype based valuations (all on potential) in the earliest days when you’re just a team and and idea, to pure fundamental based valuations in the public markets when you’re given a valuation multiple against a financial metric like revenue or free cash flow.

Cloud 161

Cloud Scale Pricing Revenue 161

Baremetrics

SEPTEMBER 26, 2021

There might not be an industry more addicted to its metrics than SaaS, and there is good reason for it. But how many SaaS financial metrics are you really tracking? 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?

Metrics 95

Metrics SaaS Payments SaaS Customer Lifetime Value 95

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. Thus the premium placed on NRR as a valuation metric.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

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

OPEXEngine

JUNE 2, 2021

Smart pricing enabled process management software provider Cherwell to get the most from its subscribers while new businesses languished. ” Key metrics. . ” Key metrics. “It’s a combination of our cost of sales on a deal and our customer acquisition cost attendant to that,” he said.

Metrics 52

Metrics Pricing Airlines Sales Hiring 52

Clouded Judgement

MARCH 22, 2024

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. However, it’s also one of the most loosely used metrics, and is frequently misused. I created this subset to show companies where FCF is a relevant valuation metric.

AI 183

AI Revenue Cloud Technical Advisors 183

Baremetrics

NOVEMBER 2, 2021

To get the most out of the time and money invested into their apps, Shopify App Developers need to track the core metrics of their industry. What is a business metric? Why you need to track business metrics for Shopify App Developers 10 business metrics for Shopify App Developers 1. What is a business metric?

Payment Solutions 98

Payment Solutions Outsourced Development Underperforming Technical Team Metrics 98

SaaStr

JULY 13, 2022

These processes might include listening to employees, getting external feedback, or reviewing your metrics regularly. . Contract processes, packaging, and pricing might change. If you ask a SaaS founder the most crucial metric for his sales pipeline, they’ll likely say MRR. Expansion or retention is the new acquisition.

Scale 211

Scale Sales Hiring Revenue Marketplace as a Service 211

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Yes, these really can be seen as customer acquisition costs, and they are: “We consider the net costs of onboarding and hardware, in addition to our sales and marketing activities, to be core elements of our customer acquisition approach.”

SaaS Payments 229

SaaS Payments Scale Payment Methods Payments 229

User Pilot

FEBRUARY 28, 2024

Analytics dashboards are the best way to monitor metrics that track each stage of the customer path. Using key metrics to track the entire customer journey, from initial awareness to each existing customer, is paramount. Customer journey metrics to track in the awareness stage Impressions. Free to paid acquisition rate.

Customer Lifetime Value 102

Customer Lifetime Value SaaS Software Review Acquisition 102

User Pilot

AUGUST 6, 2023

A consistent omnichannel customer experience can improve satisfaction , build loyalty , drive acquisition, increase retention , boost LTV, and help you make data-driven decisions. User acquisition. Due to the necessity of data analytics when optimizing the omnichannel customer experience, you’ll have more metrics to work with.

Investment 89

Investment Banking Social Media Customer Lifetime Value 89

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

Chaotic Flow

MARCH 25, 2014

My first serious lesson in the criticality of SaaS metrics was about six years ago when I was unexpectedly stumped in a board of directors meeting. In 2014, we not only have a much better understanding of the financial levers that drive SaaS business success, we are on the verge of a metrics revolution in the way SaaS businesses are managed.

Metrics 156

Metrics Business SaaS Scale 156

Tom Tunguz

JUNE 12, 2016

The acquisition frenzy continues in SaaS. billion, which prices the business at 8.1x In the 2016 acquisition market, the median acquisition multiple is 7.8x In the 2016 acquisition market, the median acquisition multiple is 7.8x The LinkedIn acquisition in particular is a strategic move by Microsoft.

Acquisition 100

Acquisition Startup Banking Benchmarks 100

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

ChurnZero

MARCH 18, 2022

With so many SaaS metrics floating around, and even more opinions on when and how to use them, it can be hard to know if you’re measuring what really matters. Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e.,

Customer Success 98

Customer Success Metrics SaaS Banking 98

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Benchmarks Retention 177

Stax

FEBRUARY 21, 2024

TL;DR The SaaS Magic Number is a metric, somewhat similar to ROI, but designed to assess the efficiency and effectiveness of a company’s sales and marketing strategies. The SaaS Magic Number is a metric, related to ROI, but better designed to assess the efficiency and effectiveness of a company’s sales and marketing strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

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. How do you incentivize this?

Compensation 164

Compensation Sales Azure AWS 164

Chart Mogul

MARCH 31, 2022

The best way to keep track of your growth is to monitor your SaaS metrics. Why Metrics Matter? The best way to keep track of your growth is to monitor your SaaS metrics. Why Metrics Matter? Metrics tell a story of how your business is performing. Here are the key SaaS metrics you need to monitor.

Metrics 52

Metrics Scale Startup SaaS 52

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

Cloud 235

Cloud Payments Software Review Payment Solutions 235

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources.

Scale 102

Scale Sales Hiring Metrics Sales 102

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

SEPTEMBER 3, 2019

There’s a little bit of work to do still, but you know, tonight the title of my talk is how to make user acquisition practically free. Before that, I was at a company called Grasswire, and in both of those companies we had to acquire customers for about 1/10th the price of our competitors. What am I missing?”

Acquisition 137

Acquisition Software Review Payment Methods Marketplace as a Service 137

Clouded Judgement

NOVEMBER 3, 2023

Namely, two large customers caused a huge issue (New Relic account growing very slowly post their acquisition, and a gaming company going back on prem - which I’m guessing means going to self managed Kafka?). I created this subset to show companies where FCF is a relevant valuation metric.

Software Review 161

Software Review Cloud Software Azure 161