Blulogix

JANUARY 5, 2024

Key Definitions in Subscription Billing: Demystifying the Jargon By BluLogix Team Welcome to the fourth installment of our comprehensive guide on selecting the right subscription billing platform. Before we go much further, let’s go deep into essential definitions and concepts in the world of subscription billing.

Subscription 52

Subscription Payment Features Payment Services Payments 52

ProfitWell

NOVEMBER 6, 2019

The subscription revenue model is hardly new. But in the past few years, subscriptions have seen a bit of a resurgence. In fact, you'd be hard-pressed to find an industry that hasn't seen at least one subscription success story: Cars. Even the humble houseplant doesn’t seem immune to the subscription economy.

Payment Features 74

Payment Features Payments Subscription Revenue 74

Clouded Judgement

MARCH 22, 2024

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! The biggest culprit is describing non recurring revenue as ARR. .”

AI 183

AI Revenue Cloud Technical Advisors 183

User Pilot

JANUARY 9, 2023

Can personalized retention marketing grow your customer’s lifetime value and customer retention rate? This article considers all you need to know about retention marketing. How can a personalized experience help drive retention? What personalized customer retention strategies are open to you? Who are they?

Customer Lifetime Value 86

Customer Lifetime Value Retention Marketing Scale 86

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. It’s actually not even to make customers successful.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

CustomerSuccessBox

MARCH 25, 2022

Then while considering customer acquisition cost (CAC) why miss out on customer retention cost (CRC)? About customer retention cost. It is the cost spent on the retention of customers by the total active customers. Customer retention cost (CRC) = Annual cost on customer retention / No of active customers.

Retention 52

Retention Customer Lifetime Value Acquisition Churn 52

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 93

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 93

FastSpring

MAY 14, 2019

However, our expectations for the quality of the software continue to grow and outpace any current investments. Here’s how your company can benefit from switching from a perpetual license to a subscription plan. Reason #1: Subscriptions support product innovation. Reason #1: Subscriptions support product innovation.

Payment Features 71

Payment Features Payment Methods Subscription Payment Services 71

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

Subscription Flow

APRIL 18, 2024

In such a scenario, what subscription-based businesses like these dating apps usually do is they redirect their energies into improving their customer lifetime value by reworking their customer engagement model. How Important is Subscriber Engagement for Subscription-Based Businesses? It is measured using various metrics.

Engagement 87

Engagement Customer Lifetime Value Revenue Subscription 87

ChurnZero

SEPTEMBER 16, 2022

When a financial slowdown approaches, the smartest businesses look for areas where their investment has the best leverage. Double down on customer retention during a downturn. “In In good times, a lot of investments that a company makes are really focused on new sales. Talent acquisition is way more interesting and way better.

Customer Success 98

Customer Success Investment Churn Retention 98

User Pilot

JULY 18, 2022

Are you satisfied with the customer loyalty and retention rates of your SaaS? Today we explore what customer loyalty and retention mean for SaaS, how retention differs from loyalty, and tactics to help you boost both. Customer retention is a company’s ability to keep its existing customers. What is customer loyalty?

Retention 80

Retention SaaS Customer Lifetime Value Education 80

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

Clouded Judgement

DECEMBER 21, 2023

net retention and CAC payback). 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). The graph below shows the median net retention going back to 2020.

Cloud 177

Cloud Software Benchmarks Retention 177

Totango

JANUARY 26, 2021

What Is Churn Rate and How Does It Relate to Customer Retention? Churn and retention are flip sides of the same coin so that you can reduce one by raising the other. Retention rate represents how many of the same group of customers you kept over the same time frame. How Do You Prevent Common Causes of Customer Churn?

Churn 89

Churn Retention Underperforming Technical Team Technical Review 89

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

FastSpring

SEPTEMBER 24, 2020

Revenue refers to the total earnings a company generates through its core operations like sales of products or services, rents on a property, recurring payments , interest on borrowings, etc. Capital gains, interest earned on investments, sales of assets, or other miscellaneous earnings are not considered revenue.

Payments 88

Payments Payment Methods Payment Features Payment Services 88

FastSpring

DECEMBER 20, 2018

What’s the story with subscriptions? If your digital business is just getting off the ground, subscriptions can be a lifesaver. Thanks to heavy up-front customer acquisition costs, SaaS startups often struggle with cash flow issues until they recover their initial investment.

Payment Features 64

Payment Features SaaS Payments Subscription Payment Solutions 64

Baremetrics

MARCH 7, 2021

Read what you should know about subscription management and why it is important in recent times! Many products and services online are beginning to adopt subscription-based systems for their billing processes. Apart from the recurring revenue, subscription billing systems also offer appreciable stability to businesses.

Payment Features 45

Payment Features Merchant Services Payment Methods Payment Solutions 45

User Pilot

APRIL 29, 2024

A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. The renewal rate is calculated as the number of customers who renew their subscription divided by the total number of customers up for renewal at any given period.

SaaS Payments 78

SaaS Payments Business SaaS Payment Solutions 78

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

Andreessen Horowitz

APRIL 23, 2024

So unless there’s some really obvious or transformative thing to do in your business today, it’s worth waiting a little bit to invest heavily in that. We’re experimenting with it, but we haven’t made a massive investment. Alex: The other side of the equation on customer acquisition is monetization.

Payments 117

Payments Forecasting Payment Services Payment Solutions 117

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. So when’s the right time to invest more in sales and marketing when we’re all trying to become radically efficient ? At the same time? The product becomes your sales team.

Scale 282

Scale Sales Hiring Sales Marketing 282

Clouded Judgement

SEPTEMBER 12, 2023

net retention and CAC payback). 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). The graph below shows the median net retention going back to 2020.

Cloud 169

Cloud Software Benchmarks Retention 169

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 166

Compensation Sales Azure AWS 166

Baremetrics

APRIL 6, 2021

ProfitWell is a cloud-based app that generates real-time financial and subscription metrics for data-driven SaaS enterprises. The recurring revenue growth platform provides users with valuable insights into subscription funnels and one-click analytics for Stripe. But ProfitWell does not benefit all SaaS companies.

SaaS Payments 93

SaaS Payments Payment Services Payments Payment Solutions 93

Valuize Consulting

FEBRUARY 3, 2022

Net Dollar Retention is the most important valuation metric in the technology industry. With all new and 80% of historical software vendors now operating on subscription-based business model (Gartner, 2018 ), the adoption of subscription and consumption revenue models has achieved dominance. NDR Is Your MVP.

Retention 52

Retention Metrics B2B Customer Success 52

Point Nine Land

APRIL 24, 2019

That’s the mantra for most SaaS and subscription companies today. As an industry, we invest millions acquiring and converting customers. For a long time, acquisition has been the primary focus of growth, but it’s come at a cost. Ready to grow through retention? Acquire, grow, acquire some more. Try Brightback now.

Retention 76

Retention Strategy Sales Hiring Scale 76

ProfitWell

JUNE 27, 2019

From CRM software to coffee beans, shaving blades to designer gowns, recurring billing is the lifeline for every subscription business. It’s easy to see why—automatic charges for subscriptions are simple and convenient for customers and predictable and sustainable for companies. What is recurring billing?

Merchant Services 76

Merchant Services Payment Features Payments SaaS Payments 76

Clouded Judgement

JUNE 9, 2023

Expansion revenue is still declining (we see this in falling net retention rates), but gross retention remains strong. Very healthy new business (new customer) acquisition. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Trends 130

Trends Cloud Azure AWS 130

SaaStr

SEPTEMBER 12, 2019

I’m talking about product-led growth as an investment strategy, but really my background is 10 years of operating experience in the product-led growth world. Now I’m investing in that. I say investment strategy, but really it’s like how do you build a company that’s focused on product-led growth?

Investment 101

Investment Underperforming Technical Team Sales Hiring Software Review 101

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Marketing? .

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

Blulogix

FEBRUARY 9, 2024

As we delve deeper into the subscription economy, it’s essential to understand the multifaceted benefits and inherent challenges of adopting recurring revenue models. This predictability aids in accurate financial forecasting, budgeting, and resource allocation, enabling more strategic planning and investment.

Revenue 52

Revenue Business compliance B2B 52

Clouded Judgement

APRIL 5, 2024

” Acquisitions become tougher because the preference stack is higher. They’re playing an option value game, where each investment is treated as a deep out of the money call option. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4).

Cloud 161

Cloud Scale Pricing Revenue 161

Subscription Flow

DECEMBER 28, 2023

There are many people who have amazing SaaS business ideas, however, they do not have enough money to invest so that their ideas can be materialized. We suggest you start working on the feasibility of your idea, present it to an investor, and secure funding for your SaaS business idea. What should be done? Give up the idea?

Metrics 52

Metrics SaaS Finance Acquisition 52

CustomerSuccessBox

APRIL 29, 2022

If not, start focusing on customer retention. Plan the best SaaS Retention strategies that ensure customers stay with you for long. Customer retention is critical to your company’s long-term success. 10 Best SaaS Retention strategies for your business! Invest in an efficient and successful customer Onboarding.

Retention 52

Retention Strategy Business SaaS 52

User Pilot

MARCH 25, 2024

Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. As this investment is expensed in SDE/EBITDA, the metrics often equal zero. The metric is used by companies with quarterly or yearly subscription plans.

SaaS 89

SaaS Customer Lifetime Value Acquisition Metrics 89