Tom Tunguz

SEPTEMBER 21, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we’ve looked at in the past have been purely SaaS businesses.

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Benchmarks SaaS Payments Metrics Scale 100

ProfitWell

NOVEMBER 13, 2019

The trick is identifying a smaller set of metrics that really tell the story of your business and making them your key performance indicators, or KPIs. The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool.

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Subscription Payment Features Customer Lifetime Value Benchmarks 80

Chart Mogul

JANUARY 22, 2021

We’ve collected the most important information on the topic — from a definition and formulas to benchmarks and discussions on how to use churn. Churn is a concept specific to subscription businesses. It signifies the rate at which a business is losing customers and/or revenue through subscription cancellations.

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Churn SaaS Benchmarks Subscription 136

User Pilot

NOVEMBER 27, 2023

The churn rate refers to the percentage of customers discontinuing their subscriptions during a given time period. During the month, 30 customers left and ended their subscriptions. Revenue churn generally occurs for two reasons: existing customers pause their subscriptions or downgrade their plans. Customer Churn Rate Formula.

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Churn Retention Benchmarks Customer Lifetime Value 101

SaaStr

NOVEMBER 1, 2019

About the episode: Tien Tzuo is the Founder and CEO of Zuora, one of the fastest-growing SaaS companies that has been at the forefront of the rise of subscription business models. They have funding from some of the best in the business including the likes of Benchmark, Sequoia, Redpoint and Marc Benioff, just to name a few.

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Technical Review Development Team Review Software Review Scale 204

CustomerSuccessBox

NOVEMBER 9, 2021

The SaaS Business Model. This is referred to as “Software as a Service” Imagine that a customer signs for a 24-month subscription, the SaaS vendor will not be able to recognize the revenue of these 24 months when the subscription starts. Here are 7 customer success metrics to record if you are a SaaS business.

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Business Model Business SaaS Software Review 52

ProfitWell

MARCH 23, 2020

There are a few key metrics that all subscription businesses should be completely on top of. Think of these metrics less as numbers on a screen and more as indicators of business health. Churn is the make or break of your subscription business. Typically, the benchmark LTV:CAC ratio is 3:1. Churn rate.

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Subscription Payment Features Metrics Business 85

OPEXEngine

SEPTEMBER 9, 2021

In working with hundreds and hundreds of SaaS CFOs over the past 15 years, I’ve noticed that effective and strategic CFOs incorporate accurate benchmarking into the daily business of the company and especially into the budgeting and planning process. . Use Benchmarks At the Start of the Budgeting Process.

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Benchmarks Sales Hiring Headcount Customer Lifetime Value 52

OPEXEngine

FEBRUARY 15, 2022

Paired with gross margin (GM), cost of goods (COGs) tells investors in a single glance about the profitability of revenues, SaaS business model purity, and company efficiency. Benchmarking COGs Against the Bessemer Index. The bottom line is that Cloud business models vary, so benchmarks for Cloud COGs or gross margin can vary.

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Benchmarks Artificial Intelligence Systems Review Cloud 52

FastSpring

SEPTEMBER 16, 2022

One of the recent questions we had for members was to let us know what kind of benchmarking data and metrics they’d like to see FastSpring release. (An Having these kinds of metrics can help software and SaaS industry businesses better form strategies to increase their ARR. About FastSpring.

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SaaS Payments Payment Solutions Merchant Services Software Review 148

Totango

JULY 1, 2022

Customer loyalty is a key to repeat business and referral generation for any business model. For B2B SaaS companies, customer loyalty drives subscription renewals and brand advocacy, making it a critical component of a profitable business model. Why is Customer Loyalty Important for B2B SaaS Businesses?

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B2B B2C Underperforming Technical Team Business 114

Baremetrics

APRIL 6, 2021

An in-depth study on everything you need to know about subscription marketing, and how Baremetrics features are designed to help you navigate the subscription economy. For marketing a subscription business, it’s critical to find loyal new customers and reduce churn. 1 What is Subscription Marketing?

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Subscription Payment Features Marketing SaaS Payments 59

Unbounce

NOVEMBER 5, 2020

If that’s not feasible for your business model, you can also compete on customer service. For more insights on ecommerce landing pages, see the 2020 Conversion Benchmark Report. One of the biggest takeaways from the 2020 Conversion Benchmark Report is that the best-converting ecommerce landing pages keep it short and sweet.

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Scale Marketing Merchant Services Social Media 144

Baremetrics

JULY 21, 2021

As a SaaS or subscription-based company, you want to keep a watchful eye on your monthly recurring revenue and net MRR. MRR as a SaaS metric is pretty straightforward , but there are some nuances that you'll want to take into consideration depending on your business model. Table of Contents. 1 What is MRR Growth Rate?

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Benchmarks SaaS Payments Payments Churn 98

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview.

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SaaS Payments Payment Solutions Subscription Payment Features 52

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. But sales looks more like customer success in a PLG business.

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Benchmarks Scale Underperforming Technical Team SaaS 58

Payrix

MAY 14, 2024

Before joining Worldpay for Platforms, he was CRO at Chargebee, a subscription revenue management platform that manages billing subscriptions and payments for companies throughout the world. They’re flipping the whole thing over, and payments is a key element of helping them move. So that’s one bucket.

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Payments Payment Services Payment Solutions SaaS Payments 147

Clouded Judgement

AUGUST 2, 2023

The post was a qualitative review of the IPO process, as well as a quantitative review benchmarking the key pieces of an IPO. The benchmarking was not a review of business metrics (I did some of that benchmarking in this post ), but rather IPO metrics. The magnitude of the over-subscription is quite important.

Cloud 49

Cloud Marketing Banking Pricing 49

Chargify

OCTOBER 21, 2020

As many leading companies know, customer subscription management isn’t a “set it and forget it” concept. It is important for businesses to constantly analyze the health of their subscription model to make sure it is truly working for their customers and their bottom line. Refine pricing models. Plan for the future.

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Subscription Payment Features Payment Services SaaS Payments 63

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

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Benchmarks Retention Software Review Technical Review 52

Brian Balfour

MARCH 21, 2017

Most growth communities, forums, and email lists will inevitably have that thread that goes: “Hey, what are the benchmarks everyone’s seeing for X?” I constantly find people seeking out benchmarks or pointing to benchmarks, and we’ve all been there -- who doesn’t want some normalizing data to understand whether we’re on track or not?

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Benchmarks Business Model Acquisition Subscription 40

Baremetrics

FEBRUARY 23, 2021

Marketing analytics tools for subscription-based companies can be hard to navigate, but they’re necessary to understand where your revenue comes from. It starts at the Control Center, a central hub with an activity trail for every single transaction your business processes. Think of it like this: Why would someone spend $5.5

Marketing 87

Marketing Social Media Forecasting Benchmarks 87

OPEXEngine

MAY 18, 2021

ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. When calculating this metric, it is important to only use contracted recurring revenue and not one-time payments from services or any other one-time payment. . Usage Fee-Based ARR.

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SaaS Payments Metrics Payments Payment Services 98

Subscription Flow

NOVEMBER 24, 2023

How to Add Paystack to Shopify with SubscriptionFlow With our state-of-the-art subscription management technology, SubscriptionFlow, integrating Paystack into your Shopify store is a breeze. It starts with a simple setup and continues with automated invoicing and client administration.

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Payment Methods Merchant Services Payments Payment Services 59

Baremetrics

MARCH 31, 2021

Marketing analytics tools for subscription-based companies are hard to come by. It starts at the Control Center, a central hub with an activity trail for every single transaction your business processes. Set Benchmarks and Gain Trial Insights No company is successful without understanding how they fit in the market.

Social Media 85

Social Media Marketing Forecasting Benchmarks 85

ProfitWell

DECEMBER 9, 2019

From the rise of SaaS to the sudden glut of subscription boxes, the subscription business model has never been more popular. So much so that Gartner research predicts that in 2020, all new entrants to the software market and 80% of existing companies will offer some sort of subscription package. Do your research.

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SaaS Payments Payment Services Subscription Payment Features 61

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. You’re starting a new business. How about your business model ? Source: OpenView Expansion SaaS Benchmarks Report . Use CAC to align your business model.

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Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

Totango

AUGUST 23, 2022

By charting the points in your SaaS customers’ journeys, you can plan how to deliver clients’ desired outcomes and satisfying experiences that promote subscription renewals and higher revenue. Reminding customers to renew subscriptions. These are some of the most outstanding touchpoints relevant to SaaS business models.

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B2B Payment Methods Payments SaaS Payments 122

SaaStr

JUNE 10, 2021

Ep #402: Mårten Mickos, CEO of HackerOne, explains their innovative approach of packaging customer value derived from a variety of activities into an annually recurring subscription offering that delivers outstanding value to customers while simplifying the buying process and the customer journey. Is it software? Is it delivery?

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Outsourcing Services Marketplace as a Service Outsourced Development Scale 154

OPEXEngine

DECEMBER 17, 2019

My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. This is true even though selling software on a subscription basis has been around for well over 20 years. The Value of Benchmarking. Top-Down Planning: Using Benchmarks.

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Benchmarks Metrics Headcount SaaS 40

OpenView Labs

SEPTEMBER 8, 2021

45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . In a pure consumption-based or pay-as-you-go model, every day the customer is making a decision about whether to use a product.

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Customer Success Pricing Scale Compensation 97

User Pilot

DECEMBER 3, 2021

Staying on top of where your revenue growth is coming from — either new subscriptions or plan upgrades — will help you evaluate which areas your marketing team can improve on. SaaS magic number benchmarks: what’s a good magic number in SaaS? Other strategies you could try include: Tweaking your business model.

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Metrics SaaS Scale Churn 105

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Especially if you’re trying to get ahead in today’s highly competitive SaaS and subscription markets. Target customer personas.

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Pricing Subscription Payment Features Strategy 52

OpenView Labs

DECEMBER 8, 2021

As the cloud emerged and companies moved from license / On-Prem business models to subscription, forward thinkers observed a gap in the customer journey. . For example, with a traditional license model, customers pay an upfront fee for the license and then a recurring maintenance fee (~20%).

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Customer Success Acquisition Retention Benchmarks 96

OpenView Labs

JULY 2, 2020

The 2020 SaaS Product Benchmarks Report. B2B and B2C SaaS and Subscription Report. Updated weekly to show the impact of COVID-19, this resource from ProfitWell includes data from their subscription companies. SaaS Pricing Models–Pricing Strategy Examples and Best Practices. Nudging Customers with Behavioral Tactics.

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Pricing SaaS Payments Payments SaaS 138

User Pilot

FEBRUARY 12, 2025

Business model: SaaS companies with subscriptions should track stickiness since frequent use correlates with retention and customer lifetime value. Freemium models rely on sticky behavior for free-to-paid conversions. Occasional-use products (tax software, real estate apps) dont need to prioritize stickiness.

Customer Lifetime Value 52

Customer Lifetime Value Engagement Retention Social Media 52

Baremetrics

AUGUST 1, 2021

Acquiring customers for SaaS is a completely different ball game altogether than, say, for the traditional business models (think: eCommerce, for instance). In the SaaS industry, acquiring new leads through short-term marketing promotions will not cut it--which works as a killer strategy for the eCommerce business model.

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Acquisition Strategy SaaS Underperforming Technical Team 98