Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. net retention and CAC payback). On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business.

Cloud 161

Cloud Software Benchmarks Scale 161

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.

Benchmarks 52

Benchmarks Sales Hiring Headcount Customer Lifetime Value 52

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. net retention and CAC payback). On the other hand, if your net revenue retention is 120%, you only need to grow new logo revenue 10% to be a “high growth” business. Let’s dive in.

Cloud 130

Cloud Software Review Software Benchmarks 130

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

OPEXEngine

JUNE 11, 2020

You hear the terms SaaS, subscription, term licenses and perpetual license software tossed around frequently. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly. The product is hosted by the vendor or a 3 rd party (like AWS).

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

Baremetrics

JULY 30, 2021

Chargebee is a company that offers a wide range of features and toutes itself as the leader in subscription billing management. Within their platform, users can manage various aspects of their online customers such as subscription, recurring billing, invoicing, payments, accounting, taxes, and more.

Systems Review 52

Systems Review Technical Review Payment Features Payments 52

Payrix

APRIL 24, 2024

Andy suggests that there is an immediate and discernible value-add for software companies to embed payments as a means for retention of SaaS revenue. Plus, software providers gain the addition of payments revenue and the ongoing retention of that additional revenue too. How do payments impact software attrition rates?

Payments 162

Payments Embedded Payments Merchant Services Payment Solutions 162

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

Totango

FEBRUARY 10, 2021

When your customers enjoy more value, your product adoption rates rise and customer retention rates go up. We invest in improving our apps to reduce the number of steps involved in lead generation.”). This will guide your employees to take steps that promote customer success, generating results that yield higher customer retention.

Scale 86

Scale Customer Success Retention Strategy 86

Point Nine Land

APRIL 24, 2019

That’s the mantra for most SaaS and subscription companies today. As an industry, we invest millions acquiring and converting customers. When companies don’t start with a retention strategy at its core, the potential revenue loss is staggering. Ready to grow through retention? Acquire, grow, acquire some more.

Retention 76

Retention Strategy Sales Hiring Scale 76

OPEXEngine

APRIL 14, 2021

In today’s post, we review the results regarding the “Top Growth Initiatives for 2021,” “Internal Investments,” and “Strategic Finance Goals” that those surveyed are planning to make. . These top investment priorities reflect what OPEXEngine is hearing from CFOs in conversations and in our current benchmarking, as well as in this survey.

Investment 52

Investment Sales Hiring SaaS Finance 52

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

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions. Book the demo to see how!

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

User Pilot

OCTOBER 15, 2023

Use benchmarks to monitor your performance to see how well each stage converts. Monitor retention during the trial period so you can make changes to drive more user engagement. The main metrics to focus on are: MRR (Monthly Recurring Revenue) : Calculates the monthly predictable revenue the company can expect from its subscribers.

SaaS Payments 105

SaaS Payments Payment Methods Payment Solutions Payments 105

ProfitWell

NOVEMBER 15, 2019

Your subscription company should run like a well-oiled machine. So I’ll unpack some of our favorite tools that cater to certain needs—analytics, accounting, retention, pricing, and more. There are hundreds of SaaS tools online that will help your business increase retention and decrease churn. SaaS companies need tools that: 1.

Retention 56

Retention Pricing SaaS Payments Payment Methods 56

ProfitWell

MARCH 2, 2020

Listen wherever you get podcasts: Your top subscription news. Waking up with subscription. And there's a new subscription in town that may actually satisfy your daily caffeine kick while also saving your wallet. could be a worthier investment for your 2020. Think about it: How many times a week do you buy coffee?

Retention 52

Retention Subscription Payment Features Churn 52

Clouded Judgement

DECEMBER 9, 2022

I went back and looked at the last ~50 software IPOs and benchmarked them across a number of metrics. Most public companies don’t report net new ARR, so I’m taking an implied ARR metric (quarterly subscription revenue x 4). Every week I’ll provide updates on the latest trends in cloud software companies.

Cloud 130

Cloud Benchmarks Subscription Payment Features 130

Kellblog

OCTOBER 30, 2022

One of my new benchmarking themes is that people need to pay more attention to matching their benchmarks with their aspirations. Net dollar retention (NDR) of 109%. Margin profile of 77% subscription, 73% blended. This is all private SaaS companies, including 22% PE-backed and 13% boostrapped. blended, 1.8 new, and 0.6

Metrics 135

Metrics SaaS Benchmarks Churn 135

OpenView Labs

SEPTEMBER 23, 2019

We’re living in a remarkable era for investing. Benchmarks are the only check on whether or not a business is generating efficient growth. Benchmarks act as a swim lane for operating a business and allow operators to build a hyper-growth business that provide permission to believe. How Do I Know What My Benchmarks Are?

Benchmarks 40

Benchmarks Data SaaS Scale 40

Tom Tunguz

FEBRUARY 20, 2017

The chart above shows the subscription revenue is roughly at $150 million and professional services revenue is about $35 million this year. Third, Mulesoft boasts great dollar retention that has grown from 110% to 117% over the last years. Today, the business generates nearly $200 million annually in revenue, and is growing at 70%.

Metrics 100

Metrics Benchmarks Scale Finance 100

Kellblog

NOVEMBER 23, 2022

burn) by failing to invest in the second half of 2023 for growth in 2024. The next block focuses on retention rates: Net dollar retention = current ARR from year-ago cohort / year-ago ARR from year-ago cohort. Gross dollar retention = current ARR from year-ago cohort excluding expansion / year-ago ARR from year-ago cohort.

Technical Review 116

Technical Review Software Review Forecasting Churn 116

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

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. Net dollar retention: What happens to every dollar of new MRR you acquire?

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

Clouded Judgement

AUGUST 25, 2023

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses.

Benchmarks 246

Benchmarks Artificial Intelligence Data Software Review 246

ChurnZero

JUNE 19, 2020

During the webinar, we discussed: How customer retention impacts the valuation of your company. How Customer Success can effectively drive retention. What data you need to get the investment in your Customer Success team. Q: Does the importance of retention metrics vary by strategic buyers versus private equity (PE) buyers? .

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

InsightSquared

MAY 7, 2019

When scaling the business, sales typically averages roughly 30% of revenue, so therefore sales spend is one of the biggest investments a company can make. 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.

Scale 102

Scale Sales Hiring Metrics Sales 102

FastSpring

SEPTEMBER 16, 2022

Valid question, and I’m going to answer it — because the reasons (plural) we have for investing in this initiative may not be as simple as the most cynical among us assume. Companies don’t just invest in new programs to benefit random business people on the internet; they do it because it serves their own business in some way.

SaaS Payments 145

SaaS Payments Payment Solutions Merchant Services Software Review 145

Chart Mogul

DECEMBER 20, 2023

Sure, there are a lot of CRMs on the market, but our unique ability to combine subscription data with sales opportunities and customer communication all in one place has proven powerful. Then our 2023 SaaS Benchmarks Report brought light to how performance trends were reacting to a changing economic context. Bring on 2024!

Scale 52

Scale Subscription Payment Features Benchmarks 52

User Pilot

OCTOBER 26, 2023

We also share benchmarks, important metrics to track, and best practices. TL;DR Software ROI, or Return on Investment , represents the financial and business benefits of implementing a software application while factoring in the cost of the investment. Let’s get right to it. What is the ROI of software?

Outsourcing Services 105

Outsourcing Services Software Outsourced Development SaaS 105

ProfitWell

NOVEMBER 1, 2019

But after working with hundreds of SaaS companies, I've realized that the same advice applies for your retention rate as well. But just like avoiding the yeti is way more fun than restarting the game, boosting your retention is more fun—and way more valuable—than acquiring more customers. Align team incentives around retention.

Retention 56

Retention Strategy Underperforming Technical Team SaaS 56

Clouded Judgement

APRIL 4, 2024

The purpose of the detailed information is to help investors (both institutional and retail) make informed investment decisions. There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. Enterprise Edition.

Benchmarks 117

Benchmarks Data Cybersecurity Cloud 117

Chart Mogul

JUNE 16, 2023

A sponsorship is a huge time and financial investment. We consider carefully which events we could and should invest in. Return on Investment is the most common way to asses event success. If you consider the cost of the booth, travel, accommodation, swag, time of the team that was invested, etc. That’s 200k!

Strategy 52

Strategy SaaS Benchmarks Travel 52

CustomerSuccessBox

JUNE 30, 2022

Reflecting on the fact that customer retention is the backbone of SaaS. This eventually translates into the importance of keeping track of the User Adoption Rate , especially when you’re running a subscription-based business model. A user adopts the product when the user moves from trying the product to investing in it as a solution.

Business 52

Business SaaS Customer Lifetime Value Benchmarks 52

BrightBack

JUNE 30, 2020

Today Brightback is launching Experience Manager in beta, a way subscription managers can easily implement retention tactics we’ve rigorously tested with direct-to-consumer and SaaS businesses over the past 18 months. 2020 is a watershed moment for customer retention. What’s coming: Retention experiments that drive results.

Payments 52

Payments Management Payment Methods SaaS Payments 52

User Pilot

APRIL 24, 2024

TL;DR SaaS renewals includes the process of renewing a subscription to an online-hosted software service. Effective renewal strategies enhance customer retention , drive revenue , and build a loyal base for long-term SaaS success. SaaS renewals refer to the process of a subscription renewal to a software service that is hosted online.

SaaS Payments 104

SaaS Payments Retention Payment Services Payment Solutions 104

OPEXEngine

NOVEMBER 17, 2020

If you are an early-stage or growth SaaS company, most likely all your sales and marketing expenses are invested in acquiring new customers. If you work backwards from the purpose of CAC to review the inputs, it should be clear what expenses are associated with acquiring versus more broad-based sales and marketing and customer retention.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

User Pilot

APRIL 26, 2022

So, let’s see what you can do to improve feature adoption and ensure a high customer retention rate. Product adoption occurs when customers invest in your product without looking for alternatives to achieve their goals. Adoption increases customer retention, reduces churn , and increases monthly recurring revenue.

Strategy 98

Strategy SaaS Onboarding Scale 98