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.

Payments 130

Payments Payment Services Payment Solutions SaaS Payments 130

FastSpring

APRIL 2, 2019

To spare you the headache, here’s a quick guide to help you make sense of subscription finance—starting with monthly recurring revenue. What is Monthly Recurring Revenue? Monthly Recurring Revenue, or MRR, is the expected normalized monthly revenue based on currently active subscriptions.

Finance 109

Finance Subscription Payment Features Revenue 109

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.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

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.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

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.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

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.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

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?

Benchmarks 40

Benchmarks Business Model Acquisition Subscription 40

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.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

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.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

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.

Pricing 52

Pricing Subscription Payment Features Strategy 52

User Pilot

APRIL 29, 2024

A good SaaS renewal strategy helps drive customer retention , increases the customer lifetime value , and improves your monthly recurring revenue. The renewal rate is calculated as the number of customers who renew their subscription divided by the total number of customers up for renewal at any given period.

SaaS Payments 102

SaaS Payments Business SaaS Payment Solutions 102

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.

SaaS Payments 61

SaaS Payments Payment Services Subscription Payment Features 61

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.

SaaS Payments 146

SaaS Payments Payment Solutions Merchant Services Software Review 146

Andreessen Horowitz

AUGUST 22, 2023

Investors often use 3x LTV:CAC as a rough benchmark of a consumer company’s financial health. Relative to enterprise companies, consumer companies have a wider range of business models (e.g., first-party e-commerce, third-party e-commerce, social networks, subscription-based content, etc.),

Customer Lifetime Value 71

Customer Lifetime Value Benchmarks Investment Metrics 71

OPEXEngine

JUNE 11, 2020

Go here to read more about using cohort analysis to define target customer profiles, improve sales performance, and how benchmarking against peers highlights where to start doing your cohort analysis. SaaS, Subscription, and On-Premise Software: Don’t Confuse Subscription with SaaS. What are some of your faves?

SMB 59

SMB SaaS Benchmarks Subscription 59

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.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OPEXEngine

JUNE 23, 2021

The CAC Payback Period, also known as Months to Recover Customer Acquisition Cost (CAC), measures the number of months of subscription revenue it takes to recover the costs to acquire one customer. This metric is one of the many ways to look at the capital efficiency and profitability of a SaaS business.

Benchmarks 52

Benchmarks Acquisition SMB Software Review 52

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. Enter the SaaS Magic Number, which measures the return on sales and marketing spend in generating new subscription revenue.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

User Pilot

FEBRUARY 7, 2024

This guide will go over what the free trial conversion rate is, why it’s important to track, how to calculate it, what a good benchmark is, and the factors that influence it! There are a few important reasons for tracking your free trial conversion rate: Benchmarking. Why is it important to track the free trial conversion rate?

SaaS Payments 52

SaaS Payments Payments Payment Solutions Scale 52

Baremetrics

OCTOBER 21, 2020

Your answer says a lot about the long term health of your company as a SaaS or subscription business. The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. Without some sort of baseline or benchmark, it’s almost impossible to tell.

Churn 118

Churn Revenue Benchmarks Pricing 118

SaaSOptics

JUNE 4, 2021

billion by 2022 — which means the key innovations of this business model are about to inspire even more businesses. And that’s due to one glaring misconception: SaaS business models are just like traditional business models. . SaaS Metrics #1: Annual Recurring Revenue (ARR) .

Metrics 53

Metrics SaaS Customer Lifetime Value Payment Features 53

OPEXEngine

NOVEMBER 17, 2020

Subscription companies have to have a policy about when customers who have not renewed their subscription contract are no longer existing customers, and if they do resubscribe, they are now new customers. For monthly subscriptions, it may be the day after the subscription expiration.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

OPEXEngine

FEBRUARY 9, 2021

billion by 2022 — which means the key innovations of this business model are about to inspire even more businesses. And that’s due to one glaring misconception: SaaS business models are just like traditional business models. The SaaS market is expected to reach $164.29

Metrics 52

Metrics SaaS Payment Features Customer Lifetime Value 52

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.

B2B 118

B2B Payment Methods Payments SaaS Payments 118

CustomerSuccessBox

JUNE 30, 2022

This eventually translates into the importance of keeping track of the User Adoption Rate , especially when you’re running a subscription-based business model. User Adoption Rate benchmarks in SaaS. Reflecting on the fact that customer retention is the backbone of SaaS. What is User Adoption?

Business 52

Business SaaS Customer Lifetime Value Benchmarks 52

OPEXEngine

AUGUST 31, 2021

Janz, whose company invests in SaaS startups, doesn’t speculate on an optimal CAC to LTV ratio; that will differ based on each company’s business model. But he does suggest a reasonable benchmark of 4x. That assumes a company spends 1x on CAC and 1-2x on general and administrative (G&A) costs.

Metrics 52

Metrics SaaS Acquisition Business Model 52

OPEXEngine

MAY 10, 2022

A ratio of 1 or greater indicates strong sales and marketing efficiency and a capital-efficient growth model. This ratio is calculated by the change in subscription revenue between Q3 and Q4, multiplied by 4, and divided by the sales and marketing spend for Q3. A ratio over 1.5

Technical Review 59

Technical Review Systems Review Benchmarks Investment 59

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.

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

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.

Pricing 64

Pricing Customer Success Scale Compensation 64

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.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

FastSpring

AUGUST 11, 2020

The way we purchase products is changing—and so are our business models. When it comes to software and online purchases, those transactions are increasingly moving to a subscription-based model, where customers put their purchases on autopilot so they can have continuous access to SaaS products. The best part?

Payment Features 93

Payment Features Payments Payment Methods Subscription 93

Point Nine Land

MARCH 18, 2019

What’s more, a SaaS tool can bring predictable and recurring revenue to a business model which tends to rely on transactional and generally unconstant revenue. In certain cases, it can even become a core revenue driver of your business with the marketplace acting as the hook to acquire users.

Marketplace as a Service 50

Marketplace as a Service Payment Features Scale Pricing 50

ChurnZero

MAY 8, 2020

Q: What is the source of the benchmark data mentioned during the presentation (22:35)? A: [Ed]: These benchmarks came from David Skok , you may have heard his name before, and the KeyBanc Capital Markets SaaS Survey. The benchmarks, gross growth rates, logo churn, revenue churn, etc. are built into this model. [You-Mon]:

Customer Success 59

Customer Success VP of Engineering Scale Benchmarks 59

Totango

AUGUST 25, 2022

For software service providers, customer engagement SaaS strategies play a central role in a successful business model. Proactive interactions with your customers can increase satisfaction and retention, driving repeat business and referral revenue. Which benchmarks can you use to track progress toward your goals?

Engagement 99

Engagement Strategy SaaS Scale 99

Baremetrics

APRIL 21, 2021

SaaS finance refers to financing options that are specifically designed to assist startup and scale-up efforts for software as a service (SaaS) businesses. Because of the demand for convenience in the digital age, SaaS and subscription businesses are popping up left and right.

Finance 98

Finance Scale SaaS Forecasting 98

OPEXEngine

MAY 22, 2020

And I’d point out that you need to benchmark both the performance metrics and the underlying individual metrics to diagnose exactly where to focus on improvement. ARR is exactly what it says it is – Annual Recurring Revenue and is straightforward to measure. ARR and ARR growth rates are the primary metrics in SaaS valuations.

Metrics 52

Metrics SaaS Deferred Revenue Benchmarks 52

Baremetrics

APRIL 1, 2021

Managing performance metrics is crucial for SaaS and subscription businesses. For millions of subscription companies, Stripe has become the go-to tool for managing payments and subscribers. In-depth reporting breaks down balances, payouts, subscription volumes, and more.

SaaS Payments 59

SaaS Payments Payments Payment Services Metrics 59