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Cohorts lead to Performance Benchmarks

OPEXEngine

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.

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Customer Success and finance: 8 metrics to build closer alignment

ChurnZero

Good sales teams typically get the budget, headcount and tools they desire because the function is tied to revenue. As a result, CS teams often have to work harder to make the case for headcount, technology and even product requests on behalf of customers. A healthy benchmark is a 95% renewal rate in a given period.

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Big on impact; short on investment: Key trends from the 2022 Customer Success Leadership Study

ChurnZero

Overall, the industry’s top five measurements of success are NRR, gross revenue retention (GRR), churn rate, logo retention rate and expansion revenue—while “softer” metrics like NPS appear only further down the list. Related: Which Customer Success best practices should you keep or let go in 2023? However, 76.5% of companies.

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Help desk metrics: Elevate your customer support with the right insights

Intercom, Inc.

It can also guide your hiring process if increasing headcount is required to guarantee 24/7 coverage for customers. A disconnect between your tickets opened and tickets completed may indicate a need for better training of support reps, increased headcount, or the introduction of automation to help reduce the strain on your team.

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How to Present an Operating Plan to your Board

Kellblog

Churn ARR is the sum of ARR lost due to shrinking customers (aka, downsell) and lost customers. Ending ARR is starting ARR + new ARR – churn ARR. It’s + churn ARR if you assign a negative sign to churn, which I usually do.) YoY growth in churn ARR. Churn rate (ATR-based) = churn ARR/available-to-renew ARR.

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By the time you're at $2-3M in ARR, you need a VP of Sales who's done it before

The Angel VC

An exception are SaaS startups with a no/low-touch sales model and viral growth (see above) and potentially companies which have a massively negative net MRR churn rate and therefore don't have to acquire as many new customers. Input your monthly net MRR churn rate (i.e. click for a larger version).

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1 Key SaaS Sales Metric to Fine-Tune Sales Productivity

InsightSquared

For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC).

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