User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. How do you lower your churn rate and make sure all your users stick around? In this article, we’ll show you: What customer churn is and why it matters. Let’s get started.

Churn 98

Churn Software Review SaaS User Experience 98

Chart Mogul

MARCH 1, 2023

We really like this metric because it encapsulates both the business’s ability to retain — so minimizing churn — and also their ability to upsell. See chapter 2 in the report to learn more about net retention benchmarks. That’s because, in B2C, churn is higher and expansion is lower. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). In the session we discuss: The answer, which is 104%. Median NDR which is surprisingly invariant across size.

Benchmarks 109

Benchmarks Retention Subscription Payment Features 109

OPEXEngine

DECEMBER 13, 2022

Most SaaS executives can relate to a friendly debate they’ve had at a board or leadership team meeting about what percentage of revenue should come from “upsells” to existing customers or what is “healthy churn.” That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

User Pilot

MAY 5, 2022

Churn analytics helps you detect your product friction points and understand why users stop using the tool. This is crucial if you want to know how healthy your SaaS product is and what should be improved to increase customer retention and lower the churn rate. A churn rate over 10 % indicates trouble. What is churn analytics?

Churn 98

Churn Retention Subscription Payment Features 98

Baremetrics

FEBRUARY 15, 2021

Confused about customer churn vs. revenue churn? Churn means lost money or lost customers. These metrics help you understand two different things: Customer churn — the number of people you've lost. Revenue churn — the amount of revenue you've lost. Customer churn = customers lost. Revenue churn = money lost.

Churn 105

Churn Payments Revenue SaaS Payments 105

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The first few months of this year felt like a lot of churning in the market. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported. net retention and CAC payback).

Cloud 169

Cloud Software Azure AWS 169

User Pilot

AUGUST 10, 2023

Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. In this article, we’ll delve into the ins and outs of CAC, its industry-specific benchmarks, and the proven practices to improve it. Ideally, the CAC should be around 1/3 or 1/4 of the LTV.

Acquisition 96

Acquisition Benchmarks Customer Lifetime Value B2B 96

User Pilot

JUNE 22, 2023

Wondering how to reduce churn rate and increase retention? While customer churn is a grave concern, retention is what can help you tackle it and make your product successful. So, efforts to simultaneously reduce churn rate and increase retention are the formula to your product’s success. What is customer churn?

Churn 98

Churn Retention Onboarding Engagement 98

Totango

DECEMBER 28, 2021

Knowing how to fight customer churn is critical for keeping SaaS business models sustainable. The more customers you lose to churn, the more you have to invest in new customer acquisition to maintain your revenue, and the harder it becomes to grow your business. Here we’ll look at four proven strategies for reducing customer churn.

Churn 95

Churn Strategy Technical Review Benchmarks 95

Chart Mogul

MAY 24, 2023

I couldn’t be more excited to launch the 2nd edition of the ChartMogul SaaS Benchmarks Report. In this report, we analyze anonymized and aggregated data from over 2,100 SaaS businesses to bring you the latest SaaS benchmarks and growth trends. We share all our learnings and benchmarks in the full report.

Benchmarks 52

Benchmarks SaaS PayPal Retention 52

The Angel VC

NOVEMBER 30, 2017

While doing some research for another post I just stumbled on this excellent overview from Pacific Crest on the churn rates of publicly listed SaaS companies. I’ve seen posts with churn benchmarks of public SaaS companies before, but this one is by far the most comprehensive collection I’ve seen and I think it’s very useful.

Churn 226

Churn SaaS Retention Metrics 226

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? Even if you’re bringing in new customers and more MRR each month, it’s hard to achieve long term growth if you can’t get your churn under control. What’s negative revenue churn? Get deep insights into MRR, churn, LTV and more to grow your business.

Churn 118

Churn Revenue Benchmarks Pricing 118

Chart Mogul

APRIL 27, 2022

Churn gets a lot of bad press. In the early stages of building a company, churn gives you quick feedback which other metrics seldom do. You can run tests on your platform, and then see feedback within the next few … Churn gets a lot of bad press. In this post, we go deep into churn. What Is Churn?

Churn 52

Churn Benchmarks Metrics Revenue 52

Chart Mogul

MARCH 22, 2022

And, you can lose MRR when your: Customers cancel — Churn MRR Existing customers start paying less — Contraction MRR. Benchmarking MRR Movements by MRR Band s. MRR Added Benchmarks. MRR Lost Benchmarks. As a reminder, MRR lost can be grouped into two components: i) Churn and ii) Contraction.

Benchmarks 52

Benchmarks Churn Startup Revenue 52

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

Chart Mogul

JUNE 1, 2023

A low churn rate means more loyal customers that contribute to sustainable business growth. Let’s say that of that original group, you retained 300 customers (while 100 customers churned in the last year). Dig into the data to learn more and prevent churn. What is logo churn? Your customer retention is 75%.

Retention 90

Retention Metrics Benchmarks SaaS 90

The Angel VC

OCTOBER 12, 2014

My churn rate is x% – is that OK?" People often ask me questions like: "How many people can I expect to sign up on my SaaS website?" "My My conversion rate is x% – is that good or bad?" "My What kind of growth rates are VCs looking for?"

Benchmarks 125

Benchmarks Startup SaaS Churn 125

ChurnZero

NOVEMBER 6, 2020

How can you compare your score to others in your industry, or to any general benchmarks? Below, I’ll walk through some strategies for both external and internal benchmarking, as well as try to convince you that the score itself should be the last thing on your mind. External Benchmarks. Overall Benchmarks.

Benchmarks 58

Benchmarks Churn Trends Enterprise 58

Tom Tunguz

MARCH 24, 2019

If we examine net dollar retention, the current value of last year’s cohort today net of churn and gross of expansion, we see Zoom is in the top decile at 140%. These customer acquisition paybacks resemble consumer acquisition figures more than software.

Metrics 268

Metrics Benchmarks Scale Acquisition 268

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. We’ve seen in the data that there’s higher churn. They just need to be aware of it and that’s why this kind of thing is helpful with the benchmarking data that you can compare.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

DECEMBER 13, 2023

13: Mis-benchmarking. Some benchmarks are highly biased. Instead, benchmark by aspiration. If the VP of Customer Success says all customers who churned had multiple escalations because they didn’t have enough agents, so they hired more agents, that might be correct. This is when you are comparing to the wrong companies.

Metrics 295

Metrics Benchmarks Sales Hiring SaaS 295

OpenView Labs

NOVEMBER 30, 2021

In 2021 the ‘ Rule of 40’ died, according to our latest 2021 Financial & Operating Benchmarks report that launched last week. . Start by tackling churn since expansion only takes you so far if you’re trying to expand fewer and fewer customers. Recommended resource: Let’s Stop Calling Churn a Customer Success problem.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

CustomerSuccessBox

FEBRUARY 17, 2022

With this in mind, upgrades or downgrades and churn should be considered when evaluating a company’s performance. It shows the amount (change) of revenue from current users that a company can retain compared to any other time period, taking into account downgrades, upgrades, and churn. What is Net Dollar Retention?

Benchmarks 52

Benchmarks Retention Churn Subscription 52

Kellblog

AUGUST 30, 2020

The purpose of this post is to provide a teaser to entice you to attend my session, Churn is Dead, Long Live Net Dollar Retention Rate , bright and early on Wednesday, September 2nd at 8:00 AM. The three, fairly lethal problems with churn rates. Net dollar retention (NDR) rate definition and benchmarks. Or at least, “with.”

Churn 87

Churn Retention Benchmarks SaaS 87

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 177

Cloud Software Benchmarks Retention 177

Tom Tunguz

SEPTEMBER 10, 2013

Benchmarking is a great tool, if you can get access to representative data. Pacific Crest and David Skok have released a fantastic survey benchmarking SaaS metrics for early and growth stage companies. Below is my list of the six most important benchmarks and observations from that report. Median Monthly Revenue Churn is 0.75%.

Benchmarks 108

Benchmarks Startup Sales Hiring Compensation 108

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

Tom Tunguz

MARCH 18, 2019

This is the value of a cohort a year later inclusive of churn and expansion. Let’s compare PagerDuty to other recent software IPOs for companies selling to engineers at their IPO. Let’s first look at one of the key SaaS metrics: the dollar attention. PagerDuty is at 139%, which puts it smack in the midst of an exceptional group.

Metrics 192

Metrics Benchmarks Software Review Engineering 192

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 262

SaaS Technical Review Benchmarks Azure 262

OPEXEngine

DECEMBER 31, 2019

It tells you what percent of revenue from current customers you retained from the prior year, after accounting for upgrades, downgrades, and churn. Formulaically it’s beginning of period revenue + upgrades – downgrades – churn all divided by beginning of period revenue.

Benchmarks 49

Benchmarks Retention Churn Customer Success 49

Sixteen Ventures

MAY 15, 2018

If you focus on Customer Success , churn will not be an issue. So while our goal is to live in a world where churn doesn’t happen, while you have it, you really need to understand it so you can avoid it in the future. All Churn is Bad. All churn is bad, but some churn is worse than other churn.

Churn 81

Churn Customer Success Management Systems Review 81

ProfitWell

OCTOBER 16, 2019

It’s the question on every SaaS founder’s lips: Is my churn rate too high? A “good” churn rate for one company might be terrible for another. Worse, comparing average churn rates across different markets and industries will leave you mired in confusing statistics and contradicting studies. What is the average churn rate?

Churn 55

Churn SaaS Payments Payments Payment Methods 55

Tom Tunguz

OCTOBER 9, 2013

One number investors use to benchmark SaaS startups across sectors and industries is sales efficiency. Below are the sales efficiency benchmarks for the approximately 20 publicly traded SaaS companies calculated on an annual basis by years since founding. Most SaaS companies operate around the 0.8

Benchmarks 112

Benchmarks Sales Recruiting Startup Sales 112

OpenView Labs

OCTOBER 30, 2019

As you may have guessed from Firas’ background, we’re huge fans of OpenView, which recently published the 2019 Expansion SaaS Benchmarks Report and accompanying Expansion SaaS Benchmarks Data Explorer. Companyon’s SaaS Benchmarks Modeling Tool. How to Use The SaaS Benchmarks Modeling Tool. Tab 1 – Data Input.

Benchmarks 40

Benchmarks SaaS Metrics Retention 40

SaaStr

NOVEMBER 17, 2022

We track your progress and provide monthly executive level reporting on achievement against industry-recognized benchmarks and best practices. Upzelo helps you fight churn and increase retention through real-time data, customised offers and better customer feedback. We are not like other banks.

Banking 230

Banking Payment Features Venture Capital Subscription 230

Kellblog

JANUARY 7, 2024

Some examples: Is our churn above or below industry averages? Benchmarks are always useful, but you can’t make this decision based on them. Churn Churn is the result of the entire experience from sales to onboarding to professional services to support to success and, of course, product. Your The counterfactual.

Customer Success 106

Customer Success Sales Hiring Benchmarks Churn 106