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Board meetings where someone inevitably asks, “Don’t we need a VP of AI?” ” I saw a term sheet the other day where a leading VC firm reserved $1m of the round … for hiring a “VP of AI” Leadership teams scrambling to post job descriptions for “Head of Artificial Intelligence.”
AI is driving up churn all across the board. Today churn is often simply because looking at how AI changes a category put the customer / renewal into play. Today churn is often simply because looking at how AI changes a category put the customer / renewal into play. But things are different now.
And why the AI budget war is just getting started Top 5 Takeaways 1. AI is Eating SaaS Budgets : Companies like Cursor are generating massive revenue by replacing traditional SaaS workflows entirely. The Disruption Math Can Be Brutal : In contact centers, AI replaces 40-50% of human agents but only increases software ACV by 50%.
What “Working” Means in the Era of AI Apps: The New Enterprise Benchmarks That Matter One of the most common refrains in the generative AI era is that “startups are growing faster than ever” — often with fewer resources. The median enterprise AI company now reaches $2.1M But the data is telling.
You know you want to invest in artificial intelligence (AI) and machine learning to take full advantage of the wealth of available data at your fingertips. But rapid change, vendor churn, hype and jargon make it increasingly difficult to choose an AI vendor. The five key things to consider when looking for an AI vendor.
Churn : Low or negative churn is critical. If you’re selling to SMBs, low churn is expected. If you’re selling to mid-market or enterprise, negative churn (expansion revenue outpacing churn) is a strong signal. Hot AI deals and super strong teams will bend the rules here. Today, generative AI is hot.
Navigating the AI Transformation Journey Calendly is taking a comprehensive approach to AI implementation across its entire customer experience – not just within the product itself. ” Bios: Steven Shu, Chief Product Officer at Calendly Steven brings over 8 years of AI expertise to Calendly. .”
Third, contracts mitigate churn rates because the customer is only making a renewal decision once per year, instead of 12x per year. Similarly, Salesforce began with a usage-based approach before shifting to annual seat contracts when churn rates became significant and revenue predictability faltered.
Just disguised upsells, with no one on the call to actually help us: Customer Success Has Gone from The Customers Ally To Its Nemesis But AI is changing everything. Especially as AI takes over more and more of the sales process. No matter what else AI takes over, humans can always be the gap fillers here.
Inherent Churn vs. Fixable Churn: You Have to Attack Both #2. But Not Always a Great Win for Their Late Stage Investors Inherent Churn vs. Fixable Churn: You Have to Attack Both Top Videos and Podcasts: #1. 5 Things That Are Working and 5 Things That Arent in B2B SaaS AI with Ironclad’s CEO and a16z #2.
June 30, 2025: The date where if your team hasn’t rolled out a truly great AI into production yet … and seen a boost from it … It’s time to reboot the team. June 30, 2025 marks the time we need to wrap up the era of stalling, of waiting to see in AI. — Jason ✨👾SaaStr.Ai✨ ✨ Lemkin (@jasonlk) June 21, 2025 It’s time.
The AI Adoption Explosion Across the Board But ChatGPT isn’t alone. The entire AI ecosystem is experiencing this vertical growth pattern: Cursor’s Developer Revolution : The ultimate growth story. million monthly active users, with the majority of revenue coming from selling AI models as a service to other companies.
So we’ll have ~20 of the latest AI start-ups from YCombinator at a special YC Demo Pod area at 2025 SaaStr Annual! Come meet them (and also watch 100+ present live at our first AI Demo Stage ) at 2025 SaaStr Annual, May 13-15 in SF Bay!! 3) Generate high-quality training data that continuously improves AI performance.
Basic questions like “What’s our churn rate?” Market Timing: Sometimes the best companies are built during inflection points (mobile subscriptions, AI boom, app store policy changes). They were two developers who had lived through the nightmare of subscription infrastructure while working at Elevate.
It’s dropped “Video” from its name as it has gone communications and AI-first: $4.7B Average Monthly Self-Serve (“Online”) Churn Hit New Low of 2.7% Average Monthly Self-Serve (“Online”) Churn Hit New Low of 2.7% It’s seen churn fall to 2.7% And it still trades at 5x ARR. #1.
The Numbers Tell the Story: Monday.com Q1 2025 : 30% growth, $282M revenue Asana 2024 : Single-digit growth, struggling with churn Mostly Same Product Category, Mostly Different Customers Both companies build “work management” software. A plumbing company isn’t hiring a Chief AI Officer. Look at Monday.com vs Asana.
So our own SaaStr AI has now logged over 30,000 conversations (!) — and it’s pretty awesome. Out AI Can Review Your VC Pitch Deck. Our AI is really, really good at this. Our AI Can Review Your Board Materials and Deck, And Find Blind Spots For You Getting ready for a big board meeting? Really Well.
AI tools can help flag bottlenecks or anomalies here. AI can reduce forecasting errors by 20-50%, so if youre still relying on guesswork, its time to upgrade your approach. AI can help refine your ICP and prioritize high-propensity leads. AI can help predict churn and identify expansion opportunities. If so, why?
AI is remaking so many categories, but it’s often murky exactly … how. Venture Capital is out in force for the hottest AI companies — but in many cases, it’s checked out in other categories. Worst case, they still use it and are happy, and churn less. Over the years, so much has changed in SaaS.
At this year’s SaaStr Annual AI Summit, Akshay Sharma, Head of Pricing and Monetization at Miro , chats with a panel of experts, including Janie Lee, Head of Product at Loom , Alison Harmon, Head of Growth at OpenAI , and Carsten Holm, VP of Pricing and Monetization at Splunk, about their nuanced approach to pricing and monetization.
Ramp published its quarterly spending trends & revealed how businesses are spending on AI. There are many great data points that underscore the growth in AI but there are important nuances in the patterns. First, AI growth rates across the most popular vendors have fallen 78% annually.
Customer Succes s: If youre seeing churn or struggling with renewals, or have larger customers that are high touch, consider hiring a VP of Customer Success around 2 M 3M ARR. AI can’t do it all. 2 M 3M ARR : Bring on a VP of Customer Success especially if you have larger customers and/or churn is an issue. $5M
Lower Churn : When software is deeply embedded in industry workflows, switching costs become naturally high. AI Integration : Vertical-specific AI solutions are becoming a key differentiator, requiring deep industry knowledge to implement effectively.
The average churn rate for the software industry as a whole is 14%. Thats actually one of the lowest churn rates across all industries. That said, industry experts agree that your SaaS companys goal churn should be below 2%. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.
Even with AI. AI tools can help you research and craft better messaging, but the human touch is what seals the deal. Its a high-churn, entry-level role, but the best SDRs dont give up. Heres how you can level up: Stop Spraying and Praying : The era of blasting 10,000 generic emails is mostly over.
So lately I’ve listened to a few calls from churned customers from portfolio companies. economy remains strong, the stock market is at all-time highs, AI is fueling Cloud growth, and yet … many folks are cutting their tech budgets, and especially, those that sell to startups are struggling. Not shrinking.
CEO Amit was kind enough to join us at SaaStr Europa in June 2024 and talk about their approach to AI and more. Notably, Ask Anything, one of the most popular AI features, saw 400%+ year-over-year growth. Disrupt yourself with AI in SaaS and B2B. Well discuss all this and much more related to AI and SaaS at 2025 SaaStr Annual!
The right AI marketing tools will help you automate repetitive tasks, make data-driven decisions, and unblock your creativity. The shift to AI-powered marketing has been dramatic. According to Hubspot, 74% of marketers now use AI in their roles, compared to just 21% in 2023. The cool thing is you get a lot of control.
Yes, there’s higher churn at the bottom of the market, but the survivors are growing faster than ever. Look at: Logistics & Transportation Supply Chain Cybersecurity (outperforming AI since Q1 2022!) Even AI companies aren’t growing as fast as cybersecurity right now. It’s not where you might think.
Unparalleled Networking Opportunities SaaStr Annual brings together thousands of SaaS, Cloud and AI executives, founders, VCs, and industry leaders under one roof across our 40+ acre campus, May 13-15 in SF Bay! Investor Connections and Funding Opportunities — And $5m AI VC Pitch Stage!! And the VCs that want to fund them!
In a year like this, SMB is doing worse, with a lot more churn and startups going out of business. Sometimes, it might look like SMB churn when they’re really just moving into mid-market. AI in the Real World AI has burst on the scene, and everyone’s rushing to add a ChatGPT-like thing to their product.
Some fun facts: 10+ years of SaaStr conference attendance Partner at Point Nine Capital, a leading early-stage VC firm Geographic reach: Actively investing across Europe, US, and Australia Notable portfolio: Zendesk, Algolia, Contentful, Loom (and many more) Known for his “five ways to build a $100M business” framework The 5 Key Things (..)
Retention Math : 132% retention at 78% Fortune 2000 penetration means: Churn rate: Sub-5% annually at enterprise level Expansion rate: 37%+ annually from existing customers Competitive displacement: Minimal once embedded The Insight : When penetration + retention both exceed 75%, you’ve built a moat.
1 Together, these teams share and explore ideas, align on a vision, visualize concepts, and translate them into coded products — all on a single, connected, AI-powered platform that collaborators around the world can access with a URL.” Gross Margin Adjusted CAC Payback (Previous Q S&M) / (Net New ARR x Gross Margin) x 12.
Customers sign multi-year contracts, churn and expansion are stable, and revenue can be confidently modeled. This “misuse of ARR” trend has accelerated in the age of AI, as business models have evolved (into more usage/success-based vs. seat-based), and everyone is tinkering with new AI products. Budget Source.
This breadth of functionality ensures customers are deeply embedded in the platform, making churn almost impossible. Rolling Our AI Products, But Still Early ServiceTitans AI capabilities, like Dispatch Pro and Marketing Pro, are designed to automate tasks, drive insights, and increase customer ROI. But it’s early.
Resolve 68% of Support Issues with Automation and AI Chime achieved 68% of support interactions resolved without human intervention, directly impacting their path to profitability. For B2B companies, this highlights the importance of diversifying revenue streams before reaching public market scale. In a business serving 8.6
G2 CEO Godard Abel deep dives into his original vision for G2, going multi-product, selling with multiple sales teams, demand gen spend, and why AI is the most important thing right now. G2 is taking these search capabilities a step further with generative AI. AI is just a better interface than forms-based searching.
At contract expiration these customers either renew (sign another contract with same annual value), expand (sign another contract with higher annual value), contract (sign another contract with lower annual value), or churn (stop being a customer and spend goes to zero). This brings me to AI (everything leads to AI these days…).
During those 30 years as an Open Source platform, multiple developers and professionals adopted and contributed to it to the point where, today, Linux is everywhere—supercomputers, AI, IoT, embedded devices, and so on. We’re now looking at a massive Open Source category, Commercial Open Source (COSS), that’s impossible to ignore.
In an era when executives are bombarded with tech buzzwords, it’s vital to focus on real-world AI uses that deliver business impact. This vivid idea captures AIs potential to act as assistants and insights machines, boosting efficiency and innovation. Executives also leverage generative AI for idea generation and reporting.
How to Use AI to Drive Sales There are five key areas where AI can be helpful, and they are: Lead generation Lead scoring Sales forecasting Personalized engagement Churn prediction Lead Generation Predictive analytics can help identify who the right leaders are and what they’re searching for. Leverage AI to assist sales.
Predictions for the future of go-to-market, including the rise of micro-businesses and AI. Attention’s AI-powered call recording platform ensures that your deals are executed flawlessly. Navigating the challenges of rapid growth, including hiring and managing cash flow. 22:58) Hiring challenges during rapid growth. (27:34)
Today we’re focusing on actionable insights you can use to drive down churn with customer success in today’s new era of SaaS efficiency. This is great news because onboarding is one of the best ways to bring down churn for SMBs. If someone never starts or uses the product, they’ll churn.
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