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 289

Scale SaaS Banking AWS 289

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 183

AI Revenue Cloud Technical Advisors 183

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 103

Churn AWS Startup Revenue 103

SaaStr

MAY 19, 2019

Churn is 1.1% Most of the companies in this 5 Interesting Things Series have had net negative churn from SMBs (e.g., Xero’s SMB churn isn’t zero. Inclusive of upsells and churn, their ARPU is $29.25 remains an important but smallish market for Xero, at only $44m and 195k of their 1.8m subscribers.

SMB 216

SMB Customer Lifetime Value AWS Churn 216

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 279

Sales Hiring Sales Recruiting AWS Churn 279

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

SaaStr

NOVEMBER 14, 2023

What’s evolved over the years and is driven by hyper-scalers like Google Azure, AWS, Twilio, and Stripe is the consumption-based model. So, if you’re measuring on incremental ARR, you create a large disincentive for a rep to talk to a customer about optimizing their environment… Because that means churn for them.

Compensation 173

Compensation Sales Azure AWS 173

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 192

Sales Hiring Scale Compensation Sales 192

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

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

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

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

Blulogix

NOVEMBER 8, 2023

Reduced Churn Customers are more likely to stay with a service that provides them with the exact value they need, no more and no less. Reduced churn is a natural outcome of usage-based pricing. When customers see a direct correlation between their usage and costs, they are more likely to remain loyal to their service providers.

Technology 52

Technology Pricing Payment Features Subscription 52

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

OpenView Labs

MARCH 4, 2021

The company struggled with poor churn and anemic expansion revenue. Once a customer has churned off the platform, it’s extremely difficult to win them back. Churn has since decreased by 50%. But HubSpot wasn’t always on the IPO trajectory. Something needed to change. So in 2011, they introduced usage-based pricing.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

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 Payments Payment Features Payment Methods 105

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 100

Cloud Scale AWS Machine Learning 100

OpenView Labs

SEPTEMBER 13, 2019

think of infrastructure companies such as AWS or CloudFlare, and platform services like Okta or Twilio. Survey data shows 42% of Customer Success teams list retention and churn reduction as a top priority, while upsells/cross-sells only win 21% of mindshare. Expansion is no less difficult, but is less of a focus for most CSMs.

Customer Success 43

Customer Success Revenue AWS Retention 43

Chart Mogul

JUNE 23, 2022

You might be hard-pressed by your AWS bill but you’re not going to start replacing the engine to lighten the load mid-flight. This is one of the tactics SaaS companies use to shore up churn. Trust us, we did it recently and you can read more about our migration here. Although, you might drop the training wheels pretty fast.

SaaS 52

SaaS DevOps as a Service Marketplace as a Service Forecasting 52

ProfitWell

SEPTEMBER 10, 2020

Running your own server to handle your customer's valuable data requires a huge investment to match the same level of security and reliability that comes baked into services like Amazon AWS and Microsoft Azure cloud. This, in turn, helps reduce churn. Churn rate is how many customers are leaving your service in a given period.

SaaS Payments 66

SaaS Payments Trends Merchant Services Payments 66

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 189

Software Review Scale Technical Review SaaS 189

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

ProfitWell

MAY 15, 2020

Google Compute Engine (GCE), Digital Ocean, and Amazon Web Services (AWS) are all good examples of IaaS. Annual contracts are the best in terms of reducing churn. Customers typically don’t interact with the physical data centers, but it is provided as a service to them. Minimal commitment. However, the subscription model is flexible.

SaaS Payments 75

SaaS Payments Payment Services Payment Solutions Payments 75

Chart Mogul

FEBRUARY 19, 2018

There are many use cases for sending data from Segment to ChartMogul, such as: Pushing product usage data to ChartMogul to understand the impact of specific feature usage on churn rate. Before you get started with this integration, you’ll need: An Amazon Web Services (AWS) account. Prerequisites. An Xplenty account.

Data 58

Data Churn AWS Data Integration Services 58

OpenView Labs

DECEMBER 13, 2019

That’s certainly true in developer tooling (AWS), sales and support (Salesforce), MarTech (Adobe), commerce (Square), HR tech (Workday) and even vertical markets (Veeva). Customer success has come to mean a lot more than just churn prevention. It’s a Rough Time to Be a Startup – Here’s What You Can Do About It. SaaS is now ubiquitous.

Sales Hiring 52

Sales Hiring Benchmarks AWS Scale 52

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 258

New CTO Scale Sales Hiring AWS 258

Totango

MARCH 5, 2019

That is, right after they post on social media about the awful company that sold them a bad, unsupported product. These best practices for customer escalation management will help you not only reduce customer churn but leave the customer more satisfied than they were before the escalation. Don’t let this happen to your business.

Management 58

Management Compensation Software Review AWS 58

OpenView Labs

FEBRUARY 11, 2021

For example, when coming to a cloud vendor, deciding to be vendor agnostic at the time of product design ensures you aren’t tied down to AWS, Microsoft Azure, or Google Cloud. It’s logical, therefore, that spoilage is a leading indicator of churn. Look at spoilage as a loan from the customer. It also requires vigilance.

Scale 52

Scale Payment Methods Payment Services Systems Review 52

SaaStr

JUNE 4, 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.

SaaS 350

SaaS Headcount AWS Churn 350

SmartKarrot

OCTOBER 17, 2022

Role: Customer Success Director Location: Remote, United States Organization: Vonage As a Customer Success Director, you will maintain a portfolio of accounts with low churn, high adoption, and high health scores.

Customer Success 19

Customer Success Scale AWS Cloud 19

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 234

SaaS Payments Metrics Payment Methods Scale 234

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

SmartKarrot

NOVEMBER 18, 2020

Drive customer success outcomes by focusing on improving an already high retention rate, with less than 5% churn per year. Improve platform and services adoption rate and minimize customer and revenue churn. Leverage Customer Health analytics to identify customer expansion opportunities & churn risks. Ensure Smartly.io

Merchant Services 10

Merchant Services Technical Advisors Customer Success Payment Services 10

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 274

Sales Hiring Data AWS Leadership 274

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 221

Headcount AWS SaaS Churn 221

SaaStr

JANUARY 28, 2020

And I remember being at that Dreamforce in 2009, which was awful. The SMBs during the recession churned at a massive rate, right? Our monthly self-service churn went from like 3% to like 9%, right? And churn got higher than the SMEs, but we all came out of this recession saying, “We kept all of our logos.”

Sales Hiring 212

Sales Hiring Scale Underperforming Technical Team Sales Recruiting 212

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 160

Underperforming Technical Team Sales Hiring compliance SMB 160