SaaStr

MAY 15, 2024

Churn is much higher on consumer subscriptions, but you have higher expansion revenue. If you’re in consumer, how can you go upmarket and get a small cohort of users paying more, churning less, and expanding revenue? B2B is finding more consumers and prosumers paying, and B2C is finding Enterprise and business use cases.

Subscription 306

Subscription Payment Features B2B Mobile 306

SaaStr

DECEMBER 14, 2021

Commoditization From AWS & Google Cloud. As a result, the logo churn went up, the NRR stopped increasing, and the deal rate decreased as the sales cycle got longer. The platform innovations slowed temporarily, which drove churn higher. No matter what VP of Sales they hired, sales consistently failed to meet their quota.

Sales Hiring 312

Sales Hiring Data AWS Leadership 312

SaaStr

NOVEMBER 3, 2022

You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. Secureframe allows companies to get compliant within weeks, rather than months and monitors 100+ services, including AWS, GCP, and Azure.

Payments 264

Payments Payment Services GCP(Google Cloud Platform) Payment Solutions 264

Tom Tunguz

NOVEMBER 17, 2014

Negative churn is an incredibly attractive characteristic of a SaaS company because it means that customer accounts are like high-yield savings accounts. The concept of negative churn is a bit amorphous so let’s illustrate the impact on a startup. Contrast this with a company which has achieved 5% negative churn.

Churn 124

Churn AWS Startup Revenue 124

SaaStr

NOVEMBER 8, 2022

Does it cost so, so much to host a few million lines of code on AWS? But … if your competition is bounded, your brand is positive, your churn is net negative, and your contracts are pre-paid … and your ACVs aren’t abnormally low … SaaS can rain cash. Churn burns a lot of cash at scale. So is SaaS cursed?

Scale 299

Scale SaaS Banking AWS 299

SaaStr

JANUARY 25, 2022

Enough to pay some salaries and AWS bills, but it’s not that much. And human churn. Yes, you now know how to make customers successful and happy now. But it is so slow. You have 2,000 customers now. But at $10/mo, that’s still just $20,000 a month. From $1m-$10m in ARR, the hardest part is you don’t have enough people or patience.

Headcount 246

Headcount AWS SaaS Churn 246

Chargify

AUGUST 17, 2020

However, with the introduction of Events-Based Billing by Chargify, this event-based billing model is now available to small and medium-sized businesses, giving them the ability to offer the same pricing models and bill customers just as precisely as Amazon Web Services (AWS) or the popular voice and messaging platform Twilio.

AWS 98

AWS Payment Services SaaS Payments Payments 98

SaaStr

DECEMBER 20, 2023

For example, Google and AWS are already ZoomInfo customers, but only certain sub-segments within those businesses – not the entire org. ” For companies like ZoomInfo, their tech cohort of customers went from its fastest-growing for two decades running to now reducing spend or just churning outright.

New CTO 316

New CTO Scale Sales Hiring CTO Hire 316

SaaStr

NOVEMBER 9, 2019

But they are often just awful managers. This means more employee churn, friction, drama than you need. Turns out, first-time CEOs are often the most successful. Because they don’t know it’s impossible. Or at least, far worse than they are the second time.

Sales Hiring 280

Sales Hiring Sales Recruiting AWS Churn 280

SaaStr

JULY 25, 2023

AWS re:Invent : AWS re:Invent is Amazon Web Services’ (AWS) annual conference, focused on cloud computing and SaaS-related services. The event brings together developers, architects, and IT professionals to explore the latest AWS developments.

ChatGPT 189

ChatGPT AWS SaaS CTO 189

SaaStr

NOVEMBER 24, 2021

Salespeople are often compensated at the highest rate when they win brand new business, but that might not be good for revenue expansion and might contribute to churn. So instead, Roberge suggests updating sales comp plans to pay higher for expansion revenue wins over brand new wins.

Sales Hiring 260

Sales Hiring Scale Compensation Sales 260

SaaStr

DECEMBER 13, 2021

For us, the SaaS model Amazon Web Services (AWS) offered was an amazing one to look at. The time and headache saved by letting go of those responsibilities are beyond worth it, not just in terms of improving your own product, but reducing employee churn and increasing automation, too.

Enterprise 246

Enterprise AI SaaS AWS 246

Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. net retention and CAC payback). Is Software Rebounding? Who are the real AI winners.

Cloud 187

Cloud Software Azure AWS 187

The Angel VC

MAY 12, 2018

Looking at the cohort chart on page 62 of the S1 , you’d expect Dropbox to have a significantly negative net dollar churn rate, i.e. net revenue retention of significantly over 100%. 8 – Weaning off AWS Look at this. For what it’s worth, this also gives you a hint on the margins of AWS. #9 9 – Eleven 9s?

AWS 187

AWS Scale Subscription Payment Features 187

SaaStr

APRIL 30, 2022

One is your churn. SaaS businesses have churn. Churn, think we’re all familiar with what churn is. Churn defines your average lifetime of your customer. We talked about churn. Five percent monthly churn gives you a 20 month average lifetime. MRR, obviously. Average Revenue per Customer.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

Clouded Judgement

MARCH 22, 2024

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). It’s probably better described as re-occurring vs recurring.

AI 193

AI Cloud Revenue Technical Advisors 193

SaaStr

JUNE 3, 2020

And G2 Gives, we partner with philanthropies, we partner with some of our customers like AWS and Google Cloud, who can then make donations for every review, to thank their customers. And here’s some interesting data also, on the challenge for SaaS vendors, for all of us, that we will, a lot … most of us will see increased churn.

Software Review 259

Software Review Scale Technical Review SaaS 259

SaaStr

JUNE 1, 2021

It just is, and then when you get them, they churn at a higher rate, and so it’s like the math just doesn’t work. You guys are much more thoughtful around the metrics that you track and knowing that churn and retention is important. Jason : How do you find that pre churn? You’re really talking about pre churn.

Part-Time VPE 296

Part-Time VPE Technical Cofounder CTO Hire New CTO 296

Baremetrics

APRIL 17, 2018

Example: Have you considered how truly awful it would be to calculate all those metrics without software? When a writer says something’s awful, we believe them. What’s the difference between something awful and something truly awful? Without truly , the word awful can do its job. It’s just clutter.

AWS 94

AWS Social Media Education Content Marketing 94

Tom Tunguz

NOVEMBER 4, 2014

AWS, Twilio, Heroku, etc. Third, contracts mitigate churn rates because the customer is only making a renewal decision once per year, instead of 12x per year. So does Expensify, which decreases the time to file expenses. With cost-based pricing, startups mark up the product they sell by some margin.

Pricing 124

Pricing Startup SaaS Payments Payment Methods 124

Intercom, Inc.

OCTOBER 12, 2021

You’ve probably had at least one awful support experience where automation has been used to disastrous effect. It’s a terrible experience that can seriously erode customer trust in a business – and eventually lead to churn.

Underperforming Technical Team 222

Underperforming Technical Team Technical Review Payment Methods Payments 222

CloudGeometry

MARCH 3, 2022

Unsubscribers, known as churn, also factor into your monetization equation. For a thorough assessment of options for a SaaS business model, download the AWS SaaS Journey Framework whitepaper , and/or take a technical deep dive into the SaaS Lens for the AWS Well-Architected Framework.

Well Architected Framework 130

Well Architected Framework VPCs (Virtual Private Cloud) SaaS Cloud 130

User Pilot

MAY 10, 2023

Amazon grants its AWS customers access to its recommendation engine to help them personalize their user experience. Using this tool, Amazon AWS users can now offer up to 50% better recommendations to their website visitors, email marketing lists, and more, thus improving the customer experience and their conversion/click-through rates.

Artificial Intelligence 90

Artificial Intelligence AI Search AI Machine Learning 90

OPEXEngine

DECEMBER 15, 2020

Churn is the enemy of subscription-based businesses; it measures the rate at which your hard-won customers cancel their subscription to your service. Left unchecked, what seems like a relatively low customer churn rate month-on-month can quickly escalate into a crippling annual churn rate that your business can’t sustain.

Churn 52

Churn SaaS Payments Payment Methods Payment Solutions 52

User Pilot

APRIL 2, 2025

This helps you spot friction early, like a glitchy signup field or a poorly adopted flow, so you can improve before it leads to churn. Userpilots data is fully encrypted and stored with SOC-compliant vendors like Amazon AWS and Google Cloud. Monitor mobile metrics effectively with Userpilot. which can damage your brand reputation.

Mobile 66

Mobile Underperforming Technical Team Onboarding AWS 66

SaaStr

JUNE 26, 2024

Then, MongoDB lowered to 12% growth from 57%, and even though there isn’t more logo churn, people are trying to use it less to manage spend. You can see the growth on the platform side with Azure, Google, and AWS and how much it’s accelerating in AI. It’s hard to believe this will last, though. To some extent, it’s not clear.

CTO Hire 147

CTO Hire AI Venture Capital Sales Hiring 147

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 113

Cloud Scale AWS Artificial Intelligence 113

ChurnZero

MARCH 31, 2022

tech ops, AWS, technical support). A: I’d ignore early-outs in available to renew (ATR) churn calculations. The other answer: if they’re not a customer, they don’t count in churn; so maybe you don’t count them as customers until the end of the out period. * Q: Should you track partial churn (i.e.,

Customer Success 98

Customer Success Metrics Technical Review Scale 98

ChurnZero

AUGUST 11, 2020

This is a guest blog post by Anita Toth, Chief Churn Crusher. . You and I both know how awful it feels to have someone disregard what we say and focus on their end goal instead. They saw a 60% drop in support tickets and prevented nearly 22% of their customers from churning. This is shocking.

Retention 97

Retention Strategy Underperforming Technical Team Software Review 97

Clouded Judgement

AUGUST 11, 2023

The good news is gross retention (ie churn) stayed constant. The hyperscalers (AWS, Azure, GCP) are seeing some uptick, but this is largely from selling compute (ie cloud GPUs). Not quite… The earnings call gave us more detail, and painted a more positive picture than just the numbers may suggest.

Cloud 130

Cloud Trends Azure GCP(Google Cloud Platform) 130

Baremetrics

MARCH 30, 2021

Their integration to SF is also quite awful, and most of the time, the data does not appear. Get deep insights into MRR, churn, LTV and more to grow your business. However, report building with Zuora can be hectic since you cannot link between multiple data sources. be honest How well do you know your business? Try Baremetrics Free.

Payment Solutions 105

Payment Solutions Payment Features Payments Payment Methods 105

User Pilot

JULY 23, 2020

What’s your new user churn rate looking like? In his blog, we’ll show you why profitability and growth depend on retention marketing; how to measure retention; how to reduce churn rate , and how to develop a strategy for keeping and growing your customers through the critical early stages and beyond. Are you making any profit yet?

Retention 95

Retention SaaS Payments Strategy Payment Solutions 95

SaaStr

OCTOBER 15, 2019

.: When you start selling to companies who are spending $100,000 or a million a year on you, you can’t just ignore their suggestions because if someone who’s paying you a hundred grand, churns going to hurt a lot more than someone who pays you $1,000 if they churn. They gave a presentation to their boss.

Underperforming Technical Team 222

Underperforming Technical Team Sales Hiring SMB Enterprise 222

User Pilot

SEPTEMBER 1, 2024

Charging too much, on the other hand, could lead to customer churn. Amazon AWS is one of the best SaaS pricing examples with this model. AWS allows users to select the specific services they need and then use the pricing calculator to estimate their total yearly costs. SaaS pricing can make or break a product.

Pricing 104

Pricing Strategy SaaS Scale 104

SaaStr

SEPTEMBER 13, 2020

We’ve all seen AWS and what they’ve done with their platform. If you divide that by the gross margin, how many customers you get into Period Four, you can start to figure out against your churn, how many months, gross margin effected, does it take for you to turn that newly acquired customer into a profitable customer?

Sales Hiring 235

Sales Hiring Scale Payments Cloud 235

OpenView Labs

FEBRUARY 3, 2022

AWS and other infrastructure providers have been using UBP for nearly a decade. Fast growers retain and expand new customers, resulting in net negative churn. Low churn shows the product is sticky, hard to replace, and truly generating value for customers. Fast growers are much more likely to employ a usage-based model.

Headcount 73

Headcount SaaS Compensation Acquisition 73

Outseta

JANUARY 20, 2020

In this post I’m going to share the most important lessons about growing a SaaS business that I learned at Buildium—collectively, these things had an awful lot to do with the company being valued so highly. This required no additional addressable market and also helped to drive down Buildium’s churn rate. How the hell does that happen?

SaaS Payments 145

SaaS Payments Sales Hiring Payment Methods Payment Services 145