SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead.

Scale 279

Scale Outsourced Development SMB Cloud 279

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. Promotional emails are consistent with the information on your pricing pages. Higher retention. Increases LTV.

Investment 97

Investment Banking Social Media Customer Lifetime Value 97

SaaStr

JANUARY 24, 2024

From an R&D perspective, they invested in what they called vertical solutions to support those new use cases. So, Calendly decided to invest in going Enterprise. From a process standpoint, you have to be ready to invest in Enterprise sales and build infrastructure to make sure sales can be successful. The result?

Scale 207

Scale Sales Hiring Scaling Revenue 207

SaaStr

AUGUST 7, 2023

CAC stands for Customer Acquisition Costs and measures how much it costs to buy a new customer. Then the Boom happened, and everyone could justify insane investments, and it warped everything. That works for a hyper-SMB model. You can read more about real-world ARR examples here. How Is CAC Calculated In SaaS? The takeaway?

Metrics 176

Metrics SaaS Sales Hiring Finance 176

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

Clouded Judgement

JUNE 9, 2023

Very healthy new business (new customer) acquisition. Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months.

Trends 130

Trends Cloud Azure AWS 130

SaaStr

AUGUST 30, 2023

They have privacy, security, vendor transitions, and acquisition support. Many investment banker pitches say that everyone is number one at something. You can filter your search by industry, whether you’re SMB, mid-market, or Enterprise, etc. They’ve been in the game for a while, so the product works. Let’s look at an example.

AI Search 181

AI Search AI ChatGPT Software Review 181

Clouded Judgement

SEPTEMBER 12, 2023

For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com). What I’ve shown below is the market-adjusted stock price reaction.

Cloud 169

Cloud Software Benchmarks Retention 169

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. Contracted expansion revenue i.e. add-ons or upgrades that affect the annual subscription price of the customer should be included. . Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

FastSpring

DECEMBER 7, 2023

“This is everyday for me, so I love talking about it,” says Carl Hargreaves about mergers and acquisitions. As the Director of Corporate Development & Strategic Partnerships at WP Engine , Carl has worked on many acquisitions and partnerships, including brands like Flywheel, Perfect Dashboard, Block Lab, and recently, Delicious Brains.

Software Review 128

Software Review Technical Review Development Team Review Branding 128

Tom Tunguz

AUGUST 26, 2014

HubSpot’s target customer base are SMBs and with this price point, it’s possible to support a profitable inside sales model if the team is very efficient. HubSpot is the second fastest SMB SaaS company to IPO yet, achieving the mark within 8 years. Only WIX, CTCT and RNG had smaller figures of $86, $265 and $352.

Benchmarks 108

Benchmarks SMB Metrics SaaS 108

Tom Tunguz

JUNE 12, 2014

To answer those questions, I’ve pulled together data from a basket of 46 publicly traded SaaS/Cloud companies and segmented them based on their average annual customer value (ACV) into three buckets: SMB ( =$10k to $100k). The median SMB SaaS startup spends significantly less on sales and marketing through year 4 of their lives.

Startup 100

Startup SMB Sales Hiring Acquisition 100

Clouded Judgement

APRIL 12, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

The market is clearly pricing in lower rates + reacceleration of growth. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com).

Cloud 161

Cloud Software Benchmarks Scale 161

Clouded Judgement

DECEMBER 20, 2022

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 130

Cloud Software Review Software Benchmarks 130

SaaStr

NOVEMBER 2, 2019

How does Krish think about purely serving the SMB market? How does he think about the mortality rate of SMBs? How does Krish think your customer acquisition and GTM strategy has to change with the movement from SMB to enterprise? Billion story from its launch in 2008 to its 2018 acquisition by Recruit Holdings.

Scale 123

Scale SaaS Payments Sales Recruiting Payment Services 123

OPEXEngine

FEBRUARY 22, 2022

SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. Being “stuck in the middle” drives SMM SaaS companies to invest in one of two strategies. Financial Profile of SMM SaaS Companies. Inside Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

ChurnZero

MARCH 18, 2022

Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021. Yours is, you have a super low Customer Acquisition Cost (CAC) so you can justify that with the super high churn. Why aren’t you consumption based in pricing?

Customer Success 98

Customer Success Metrics SaaS Banking 98

OpenView Labs

APRIL 27, 2021

Above: Logz.io’s pricing page. It’s hard to make the case to invest engineering resources on a self-service model when 90% of your ARR comes from large enterprise customers whose use cases and requirements are too complex for a fully touchless purchase. hasn’t just attracted very small, SMB customers.

Scale 67

Scale Outsourced Development Enterprise Pricing 67

SaaStr

AUGUST 9, 2019

How does Vikas see the space play out in the coming years when it comes to acquisitions? Why is it so crucial to invest in enablement in the early days? You’ve seen SalesForce with a number of significant acquisitions in the last 12 months, as an example. Now having said that, even then I need to invest in that enablement.

SaaS Payments 128

SaaS Payments Cloud Technical Review Scale 128

OPEXEngine

NOVEMBER 17, 2020

Customer Acquisition Cost (CAC). If you are an early-stage or growth SaaS company, most likely all your sales and marketing expenses are invested in acquiring new customers. As a result, the company was comparing itself to companies selling millions of low-priced subscriptions in a high-volume, transactional SMB model.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

Sales Hacker

MAY 1, 2018

4) Growth in an SMB, mid-market, and enterprise [5:10]. 8) Pricing as an objection [25:30]. Rick Smolen: Greenhouse is a SaaS company focused on Talent Acquisition. How to Sell Your Software to a Big Company: SMB Vs. Enterprise. Sam Jacobs: Give us an idea of the dynamics of SMB vs. mid-market vs. enterprise.

Sales Recruiting 47

Sales Recruiting Sales Hiring Sales SMB 47

Casey Accidental

NOVEMBER 13, 2019

If driving more customers was your customers’ #1 need, and that’s not what you helped them with, you probably didn’t build a very successful business, or the problem of solving customer acquisition for that market is very difficult. Customer acquisition was always a key value proposition, and they delivered on it.

Marketplace as a Service 106

Marketplace as a Service Business Model Business Underperforming Technical Team 106

SaaStr

OCTOBER 29, 2019

Naomi Pilosof Ionita | Investing Partner @ Menlo Ventures. We’re going to talk about matching price to value, and I’m going to share some lessons from my time as both an operator and an investor. This is a mobile solution for SMB’s to send an invoice and get paid. The next camp, we price it artificially low.

Payments 100

Payments Pricing Compensation SaaS Payments 100

SaaStr

MARCH 1, 2019

As for Tom, he joined Redpoint in 2008 and has since led investments in Kustomer, Looker, Expensify, and Gremlin all prior guests on the show, I hasten to add. How does this differ when comparing enterprise to SMB? How does this differ when comparing SMB to enterprise? How does this differ when comparing SMB to enterprise?

Scale 111

Scale SMB Sales Recruiting Sales Hiring 111

ChurnZero

JANUARY 4, 2019

So, an investment in training should improve the overall consistency of execution, whilst also helping CSMs find more time for proactive, rather than reactive, tasks. In 2019, you’ll see more companies use bots to streamline and automate their Customer Success as access improves and price decreases.”

Customer Success 73

Customer Success SaaS Payments Payment Services Payment Solutions 73

CustomerSuccessBox

FEBRUARY 28, 2022

Enterprise is stable whereas SMB’s are skyrocketing in Shopify. When you are scaling we see that enterprises grow but here the SMBs are growing faster. Best Practices: An increase in pricing worked for them as it scaled. Their increase in pricing has still got a 10% growth in revenue from all the paid users.

Retention 52

Retention SaaS Payments Payments Payment Methods 52

ChurnZero

JANUARY 4, 2019

So, an investment in training should improve the overall consistency of execution, whilst also helping CSMs find more time for proactive, rather than reactive, tasks. In 2019, you’ll see more companies use bots to streamline and automate their Customer Success as access improves and price decreases.”

Customer Success 49

Customer Success SaaS Payments Payment Services Payment Solutions 49

ChurnZero

AUGUST 24, 2018

Because you certainly are going to want to make sure that your subscription product is priced so your customers can adopt to it. In trying to understand if you have a good financial model – it really is a combination of your churn rate and then your customer acquisition cost. Also, are you going to continue to sell perpetual?

Finance 61

Finance Customer Success Scale Customer Lifetime Value 61

SaaStr

JUNE 1, 2021

The other thing that dropped our odds of success was the fact that we were focused on small business, on the SMB market, and everyone we talked to, literally everyone. Do not…,” and the reason is no one hardly ever has succeeded in building a big business in SMB. ” “Yep, we need a price.”

Part-Time VPE 201

Part-Time VPE Technical Cofounder CTO Hire New CTO 201

SaaStr

JUNE 13, 2019

We invest from the very earliest stages to the latest stages of software and consumer companies and we’re based in California. And they were broken down roughly a third, a third, a third by targeting the SMB, the mid-market, and the enterprise. Redpoint is a venture firm that’s been around for about 20 years.

Scale 191

Scale SMB Sales Hiring Payment Services 191

SaaStr

JUNE 7, 2019

To date, Amit has raised $68m in funding for Gong from the likes of Norwest, Battery Ventures, Cisco Investments, and Wing Venture Capital, just to name a few. What does Amit think about the differing variable price mechanisms that one can choose? What does Amit advise founders should charge in the early days?

Outsourced Development 128

Outsourced Development Outsourcing Services Sales Hiring Scale 128

SaaStr

DECEMBER 14, 2020

Churn is a good term for your SMB and freemium customers. They will come and go, and their lifetime values often will be relatively small & short, so your customer acquisition strategies will have to be extremely precise. If nothing else, for your biggest customers, over-invest in customer success. Like Verizon.

Churn 362

Churn Sales Hiring Systems Review B2C 362

SaaStr

JUNE 28, 2019

Jason Lemkin is the Founder @ SaaStr, the world’s largest SaaS community and leading early-stage SaaS fund with investments in Automile, TalkDesk, Algolia and more. What can founders do to their pricing model to extract as much value from each customer? How do the very best businesses structure their pricing for value extraction? *

Outsourcing Services 112

Outsourcing Services Scale Sales Hiring SMB 112

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. Usage-based pricing (UBP) , also known as consumption-based pricing, allows customers to pay for products according to how much they use.

Headcount 73

Headcount SaaS Compensation Acquisition 73

SaaStr

AUGUST 19, 2022

When do you recommend to diversify the distribution channels or the customer acquisition channels for a SaaS? And then you’re left, in most cases, with a one-off piece of tool with no one to support and invest in it, right? Is that a good investment to make? This has been very helpful. What’s your point of view?

Scale 193

Scale Sales Hiring Scaling VP of Engineering 193

Unbounce

JUNE 16, 2020

I think channel distribution is one of the most promising and untapped acquisition channels for SaaS?—?especially especially for SMB SaaS startups. Over the long term, it can also deliver increased revenue, higher customer lifetime value (LTV), and reduced customer acquisition costs (CAC). Already pretty valuable, right?).

Outsourcing Services 131

Outsourcing Services Sales Recruiting Scale SaaS 131