SaaStr

SEPTEMBER 19, 2023

Many of the fundamental business models that were once engraved in the SaaS playbook are now changing thanks to a tougher macro environment and a maturing market. PST, Stephanie Opdam, Partner at Notion Capital, shares four business model changes that will allow SaaS companies to build resilience and staying power over time.

Business Model 251

Business Model SaaS Payments Payments Headcount 251

Chart Mogul

JULY 6, 2023

Churn, SaaS companies should avoid it like the plague. If you’re looking for positive growth, you … Churn, SaaS companies should avoid it like the plague. Net negative churn, or negative churn, is known as the holy grail of SaaS or “SaaS nirvana”. It’s a silent killer! But is the term churn always bad?

Benchmarks 52

Benchmarks Churn SaaS Customer Lifetime Value 52

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 154

Retention Subscription Payment Features Customer Lifetime Value 154

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). The rise of NDR as the SaaS metric of choice. In the session we discuss: The answer, which is 104%.

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. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., FCF Margin FCF is an important metric to evaluate in SaaS businesses.

Cloud 177

Cloud Software Azure AWS 177

Chart Mogul

JUNE 1, 2023

Retention is one of the most important metrics when building a successful SaaS business. Retention is one of the most important metrics when building a successful SaaS business. Then, we’ll share some practical advice for tracking retention metrics and suggest 4 strategies SaaS businesses can use to improve customer retention.

Retention 90

Retention Metrics Benchmarks SaaS 90

ChurnZero

JUNE 24, 2022

What does this mean for B2B SaaS businesses? In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. It’s the largest survey of private SaaS companies in the world with over 1,500 responses.

Benchmarks 52

Benchmarks Retention Software Review Technical Review 52

User Pilot

APRIL 29, 2024

Mastering SaaS renewals’ best practices can transform a routine administrative task into a strategic opportunity to drive customer success and propel your business toward sustainable growth. TL;DR The SaaS renewal process involves a series of actions on/before the renewal date that lead to a customer’s renewal.

SaaS Payments 78

SaaS Payments Business SaaS Payment Solutions 78

Chart Mogul

MAY 2, 2024

For the uninitiated, ChartMogul seamlessly integrates Subscription Analytics with CRM, serving as the commercial hub for B2B SaaS companies. This year, we’re honing both our Subscription Analytics and CRM offerings, while also refining their integration into a cohesive platform.

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BetterCloud

APRIL 2, 2024

Shelfware occurs when organizations invest in SaaS solutions, but fail to fully utilize or all together abandon the software altogether. A centralized dashboard provides a complete picture of all of your applications and software subscriptions to empower your team to identify underutilized subscriptions and optimize costs effectively.

Technical Review 52

Technical Review Software Review SaaS Benchmarks 52

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. In addition, it affects cash flow.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

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 120

Benchmarks Sales Recruiting Startup Sales 120

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 67

Payment Features Payment Solutions Subscription Pricing 67

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., FCF Margin FCF is an important metric to evaluate in SaaS businesses.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaSOptics

FEBRUARY 13, 2022

Getting SaaS Accounting and Financial Operations Right in 2022. According to Gartner, the SaaS industry is projected to grow to a staggering $121B in 2021, a 15% increase from 2020. So, what is SaaS accounting, and how will it affect your business? It must be recognized over the duration of the subscription. The result?

Payment Features 105

Payment Features Outsourced Development SaaS Software Review 105

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

Chart Mogul

JUNE 24, 2021

Pricing localization is a strategy where you present the price of your SaaS differently depending on where the customer lives. The same could also be true for your SaaS business. In our B2B SaaS Pricing Masterclass , we detail the importance of SaaS pricing and how to get it right for your audience.

Pricing 128

Pricing SaaS Payments Payments Payment Features 128

Baremetrics

SEPTEMBER 15, 2021

In SaaS, you need to calculate the growth rate for a handful of different metrics. For example, you need to calculate the growth rates for monthly recurring revenue (MRR), active customers, average revenue per user (ARPU), and more. One easy way to do this is to use Baremetrics to calculate the growth rates for your SaaS metrics.

SaaS Payments 81

SaaS Payments Payment Features SaaS Payments 81

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

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

Kellblog

OCTOBER 30, 2022

KeyBanc Capital Markets (KBCM) recently published their 13th annual private SaaS company survey. The first thing to remember about this survey is that it’s private SaaS companies. Net: this is not VC-backed SaaS companies (62% are), this is not IPO-track SaaS companies (presumably some small subset of that 62%).

Metrics 136

Metrics SaaS Benchmarks Churn 136

OPEXEngine

JUNE 29, 2020

Here’s a common dilemma that all SaaS business owners face — should you pursue growth at all costs, or is it more important to make sure that your margins are healthy, and that you’re not losing money with each new customer that you bring on board? Benchmark the health of your SaaS company, and. Enter the Rule of 40!

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

User Pilot

OCTOBER 15, 2023

Conversion rate is one of the most important metrics to track in SaaS, and that’s why conversion rate optimization is an essential focus for growth in any business. TL;DR A SaaS conversion rate refers to the percentage of visitors who take a desired action on the website or in-app. What is the SaaS conversion rate?

SaaS Payments 97

SaaS Payments Payment Methods Payment Solutions Payments 97

FastSpring

SEPTEMBER 16, 2022

In our first post about our online community , we mentioned launching the Global SaaS Leaders Slack group because we saw a need for the kind of software-and-SaaS-focused community we’d want to be a part of. Our Guiding Principle: Our Software and SaaS Community Must Be Good for You in Order for It to Succeed.

SaaS Payments 133

SaaS Payments Payment Solutions Merchant Services Software Review 133

Stax

FEBRUARY 21, 2024

For modern Software as a Service (SaaS) companies, the automobile is replaced by primarily digital and cloud-based solutions and software. 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.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

User Pilot

NOVEMBER 27, 2023

The churn rate refers to the percentage of customers discontinuing their subscriptions during a given time period. A good SaaS churn rate varies by industry and growth stage, but generally, a 5%-7% annual churn is acceptable for established companies. During the month, 30 customers left and ended their subscriptions.

Churn 81

Churn Retention Benchmarks Customer Lifetime Value 81

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback).

Cloud 169

Cloud Software Benchmarks Retention 169

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. Six SaaS Metrics’ Significance. Companyon’s SaaS Benchmarks Modeling Tool.

Benchmarks 40

Benchmarks SaaS Metrics Retention 40

OPEXEngine

DECEMBER 17, 2019

In the many years I’ve worked with SaaS companies, I continue to observe a surprising lack of standardization of SaaS metrics and performance reporting. My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. The Value of Benchmarking.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

CustomerSuccessBox

FEBRUARY 17, 2022

Unfortunately, many SaaS companies overlook this and focus on generating new leads. Most people judge the performance of a SaaS company by its Monthly Recurring Revenue (MRR) while evaluating a company by its Net Dollar Retention (NDR) can provide much more valuable insight. In this example, your MRR has increased by 50%.

Benchmarks 52

Benchmarks Retention Churn Subscription 52

Practical Advice on SaaS marketing

FEBRUARY 1, 2019

Ok, let me remind us all of the blatantly obvious: “SaaS” stands for “software-as-service.” But looking at the way most SaaS solutions are marketed, too often it’s all about the “software”, and not much about the “service.” They’re paying a regular subscription fee for access to the software features… and a whole lot more.

SaaS 164

SaaS Benchmarks Subscription Payment Features 164

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., net retention and CAC payback). Subscribe now When Will Macro Improve?

Cloud 161

Cloud Software Benchmarks Retention 161

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 111

Benchmarks Deferred Revenue Venture Capital Outsourced Development 111

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

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

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., FCF Margin FCF is an important metric to evaluate in SaaS businesses.

Cloud 161

Cloud Software Benchmarks Scale 161

CustomerSuccessBox

OCTOBER 21, 2021

Customer Success has become a must for every SaaS business with the advent of the subscription economy. For so many years, SaaS has focused so strongly on the acquisition that they have been blind to other aspects of the customer journey. The subscription model has become the majority in the B2B SaaS industry.

Payments 52

Payments Customer Success SaaS Payments Revenue 52