FastSpring

APRIL 26, 2022

Last week, I canceled an annual SaaS subscription (I had three weeks left until renewal). Interestingly, even though I paid for a year-long subscription, the company didn’t let me keep the last three weeks of access to its premium features. This action will immediately downgrade your subscription. Part I: SaaS Churn Benchmarks.

Benchmarks 114

Benchmarks Churn Payments SaaS Payments 114

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.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 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 110

Benchmarks Retention Subscription Payment Features 110

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 177

Cloud Software Azure AWS 177

ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

ChurnZero

MARCH 23, 2023

Yet, many teams fall well below industry benchmarks. Customer Success benchmark: headcount How many people should be on a Customer Success team? However, we are using common benchmarks of one CSM per $1M in revenue, or one CSM per $2M in revenue for companies with mature or scaled Customer Success departments to assess team size.

Headcount 52

Headcount Benchmarks Customer Success Scale 52

Chart Mogul

JULY 6, 2023

We’ll also share the latest benchmarks on negative churn among SaaS businesses. Benchmark your churn metrics against 2100+ SaaS businesses How negative churn causes explosive growth How to achieve net negative revenue churn What is churn? If you want, you can learn more about churn basics and benchmarks on our blog.

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

FastSpring

FEBRUARY 6, 2019

Netflix, for example, markets free trials heavily because their data shows that they work, retaining about one in three people for a subscription. Once they’ve seen the platform or software in action, they’re more likely to continue to use your product and extend their subscription beyond the free trial period.

Payment Features 65

Payment Features Payment Solutions Subscription Pricing 65

SaaStr

MAY 13, 2021

429: In this episode, ProfitWell Founder & CEO Patrick Campbell shares benchmarks from over 23,000 companies and offers a helpful framework to re-evaluate your retention strategy and increase your CLV (Customer Lifetime Value) between 10 and 60%. Patrick Campbell.

Retention 148

Retention Subscription Payment Features Customer Lifetime Value 148

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

OPEXEngine

OCTOBER 10, 2019

The Subscription Show is coming to Boston in a few weeks at the World Trade Center. I’m thrilled to be speaking there about SaaS Metrics and Benchmarks. The show is 100% focused on subscription models, operations, pricing, marketing and subscription-centric technologies, and organized by Subscription Insider.

Payment Features 40

Payment Features Subscription Payment Services Benchmarks 40

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.

Churn 92

Churn Retention Benchmarks Customer Lifetime Value 92

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.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 177

Cloud Software Benchmarks Retention 177

Baremetrics

AUGUST 24, 2021

Arguably the most beautiful aspect of SaaS or subscription based businesses is the recurring revenue that comes with them. As a business owner or founder, you worry far less about how much cash is in the bank with the predictability that Monthly Recurring Revenue (MRR) brings. How do I upgrade a subscription in Stripe?

Subscription 97

Subscription Payment Features Software Review Payments 97

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

CustomerSuccessBox

FEBRUARY 17, 2022

The company has new subscriptions of $50,000, expansion revenue of zero, downgrades of $20,000, and churn of $5,000. For example, by upgrading a standard subscription to a premium subscription. An example of the former would be upgrading a user from a basic $10 subscription to a premium $50 subscription.

Benchmarks 52

Benchmarks Retention Churn Subscription 52

Chart Mogul

JUNE 1, 2023

Whether you have annual or monthly subscriptions (or a mix of both), it is common to measure retention over 12 months. Reminder: in SaaS, a cohort is a group of customers that start their first subscription in the same month and year. So, your customer retention is calculated by dividing 300 by 400. Your customer retention is 75%.

Retention 90

Retention Metrics Benchmarks SaaS 90

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

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

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 160

Benchmarks Sales Recruiting Startup Sales 160

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

SaaStr

SEPTEMBER 19, 2023

This is where traditional SaaS methods like subscription pricing only, driving growth through headcount only, or a pure sales GTM strategy only live. Notion Capital came up with a benchmark for the days when you’re below $20M ARR. The takeaway: It’s worth letting go of the belief that subscription-based pricing models are the only way.

Business Model 237

Business Model SaaS Payments Payments Headcount 237

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 89

Finance Subscription Payment Features Revenue 89

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Retention 161

ProfitWell

NOVEMBER 13, 2019

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. Read on to find out what the top six subscription KPIs are, why you should be tracking them, and how. Why subscription companies need to track KPIs. Forecast Demand.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

OPEXEngine

JUNE 29, 2020

Benchmark the health of your SaaS company, and. Some companies choose to look at total revenue, but if you offer one-time services on top of monthly subscriptions, then looking at monthly recurring revenue will give you a more accurate picture. Demonstrate to potential investors that your company is worth putting money into.

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

Baremetrics

AUGUST 6, 2021

Forecasting MRR Movements Churned Subscriptions or Cancellation Insights Trials Customer Profiles and People Insights Benchmarking Segmentation Financial Reports with Baremetrics Baremetrics Provides Smarter Financial Reporting Forecasting In-Depth Reporting Trial Insights Enhanced Customer Profiles See Your First Report Today.

Payment Services 98

Payment Services Payments SaaS Payments Payment Methods 98

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

OPEXEngine

DECEMBER 17, 2019

This is true even though selling software on a subscription basis has been around for well over 20 years. The Value of Benchmarking. In my experience working with enterprise SaaS companies over the past five years, I’ve seen a large variance in benchmarks for gross margin across subscription software businesses.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

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

Chart Mogul

JUNE 24, 2021

For subscription apps like Headspace , a global audience is part of their growth ambition. Your finance team needs to manage multi-currency invoices. While you’ll still manage your accounting in your home currency, things like invoices and typical payments will vary between customers.

Pricing 128

Pricing SaaS Payments Payments Payment Features 128

Baremetrics

OCTOBER 9, 2021

Baremetrics monitors subscription revenue for businesses that bring in revenue through subscription-based services. Baremetrics can integrate directly with your payment gateway, such as Stripe, and pull information about your customers and their behavior into a crystal-clear dashboard. Try Baremetrics free. Table of Contents.

Payment Services 98

Payment Services SaaS Payments Payment Methods Payments 98

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 130

Cloud Software Review Software Benchmarks 130

BrightBack

JANUARY 17, 2022

Factor in the huge uptick in global demand for online subscriptions services that arose through the pandemic, and we see that succeeding at retention has never been more important, and becomes a key differentiator for those who do it.

Payments 59

Payments Payment Methods Payment Features Payment Solutions 59

SaaSOptics

FEBRUARY 13, 2022

Based on a 2019 survey, Gartner forecasts that eighty-four percent of new software will be delivered as SaaS , and this percentage is expected to increase as existing providers transition to a subscription-based model. The main difference between accounting for a subscription vs. a traditional business is the method used.

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

Tom Tunguz

OCTOBER 12, 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. In 2009 and 2010, the company recognized more revenue from services than subscription.

Benchmarks 113

Benchmarks Deferred Revenue Venture Capital Outsourced Development 113