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

FastSpring

OCTOBER 25, 2023

That’s why FastSpring’s global payments features provide a localized checkout experience that can automatically convert pricing to your customer’s local currency and language, then enable customers to purchase with dozens of the most popular payment method options. Set up a demo or check out our platform yourself.

SaaS Payments 135

SaaS Payments Payment Solutions Software Review Merchant Services 135

FastSpring

APRIL 26, 2022

In part one, we cover benchmarks and common churn formulas. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. Part I: SaaS Churn Benchmarks. When we set churn benchmarks for SaaS companies, there’s so much to consider.

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Benchmarks Churn Payments SaaS Payments 114

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. This has all resulted in the median stock price declining 5% YTD. 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.

Cloud 177

Cloud Software Azure AWS 177

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

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Pricing SaaS Scale Churn 111

SaaStr

AUGUST 21, 2023

The price? To some extent, it’s just a natural output of how enterprises price. They are focused on pricing per units that scale organically in the enterprise — seats, workflows, etc. They are focused on pricing per units that scale organically in the enterprise — seats, workflows, etc. 5x more for the SMB vendor! $50k

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SMB Enterprise Scale Pricing 214

Tom Tunguz

OCTOBER 11, 2023

But more important, the sales pitch must also change (in addition to the pricing/packaging). The number of seats sold to achieve that isn’t the right benchmark of value. The first is the clear demand from customers seeking security & compliance features. Most businesses transitioning will feel this component of the evolution.

compliance 309

compliance Benchmarks Engineering Pricing 309

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

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.

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Benchmarks SaaS Social Media Sales Funnel 75

Chart Mogul

MARCH 22, 2022

Benchmarking MRR Movements by MRR Band s. MRR Added Benchmarks. MRR Lost Benchmarks. Benchmarking MRR Movements by ARPA Band s. MRR Added Benchmarks by ARPA Bands. MRR Lost Benchmarks by ARPA Bands. Does your pricing strategy take this into account? So that’s how you lose or add MRR to your business.

Benchmarks 52

Benchmarks Churn Startup Revenue 52

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. . Look for ways to quantify customer insights to develop proprietary benchmarks and communicate the value of your product. Experiment with a usage-based pricing model. It’s a win-in.

Payment Services 80

Payment Services Benchmarks SaaS Payments Merchant Services 80

Baremetrics

JANUARY 10, 2022

Optional product pricing is a pricing strategy whereby the core component of a product is sold for a basic price, and a menu of complementary services are offered for a separate fee. Optional product pricing often employs the concept of a loss leader. What is optional product pricing? Table of Contents.

Pricing 98

Pricing Airlines Systems Review Outsourced Development 98

Tom Tunguz

MARCH 27, 2023

And yes, enterprise focused companies with usage based pricing models have borne the greatest overall increase of 44%. These benchmarks suggest startups should plan on materially longer sales cycles into 2023.

Startup 350

Startup SMB Headcount Sales 350

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.

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Benchmarks Churn Trends Enterprise 58

Tom Tunguz

FEBRUARY 24, 2016

In particular, I benchmarked the revenue, growth rates and round size characteristics of these businesses at their Series A. Benchmarking Exceptional Series A SaaS Companies from Tomasz Tunguz. Unlike later rounds, Series A pricing has no correlation to MRR or next-twelve-months (NTM) revenue, which is a proxy for growth rate.

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Benchmarks SaaS Pricing Investment 100

OpenView Labs

NOVEMBER 18, 2021

Today we released our fifth annual Financial & Operating Benchmarks Survey (formerly known as Expansion SaaS Benchmarks). product-led growth), and benchmarks well against economics that support high Free Cash Flow margins over the long term. But growing fast is easier said than done, especially in the current hiring market.

VP of Engineering 64

VP of Engineering Benchmarks Sales Hiring B2B 64

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. Now we’re seeing numerous companies price 8 to 12, so it’s definitely jumped up a little bit. Price earnings doesn’t work. How does your company stack up to its peers in this regard?

Benchmarks 98

Benchmarks B2B SMB SaaS 98

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. You may also hear it referred to as multi-currency pricing or localized pricing. The answer is likely no because there’s no such thing as a universal price, even for an identical house.

Pricing 128

Pricing SaaS Payments Payments Payment Features 128

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

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Then, usage-based pricing took off.

Business Model 237

Business Model SaaS Payments Payments Headcount 237

Baremetrics

APRIL 13, 2021

Value-based pricing is a pricing strategy that sets prices according to the estimated value of how a product might be perceived by a customer. It does not take into account the cost of developing the product and its past prices. The company then adds a premium to it and comes up with a sale price.

Pricing 59

Pricing Customer Lifetime Value Forecasting Benchmarks 59

Tom Tunguz

AUGUST 26, 2019

DataDog is playing across price points. This average and the data points above about the number of $100k and $1M accounts suggests DataDog serves customers across the spectrum. NewRelic started with smaller accounts. AppDynamics started with enterprise accounts and they met in the mid-market.

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Metrics Benchmarks Scale User Experience 189

Tom Tunguz

MARCH 18, 2019

In terms of price point, PagerDuty is right around the $10,000 revenue per customer per year. Looking at gross margin, which is the revenue minus the cost of goods sold (typically hosting costs and customers success), PagerDuty tops the list of 85%.

Metrics 222

Metrics Benchmarks Software Review Engineering 222

Unbounce

JUNE 23, 2020

The problem is the software that makes them possible is usually priced for huge companies with deep pockets. And so you hope that companies price their software in a way that both makes it accessible and reflects the actual value you’re getting back. Our New Conversion-Based Pricing Plans Support Your Growth. ” Nope.

Pricing 120

Pricing Scale Machine Learning Artificial Intelligence 120

Tom Tunguz

AUGUST 27, 2014

Following this week’s post Benchmarking HubSpot’s S-1, Josh and Nikos raised an interesting question on Twitter. What are the right ways to benchmark SaaS companies from their early days through IPO? Bucketing by ACV for revenue growth won’t shed much more insight into benchmarks than the raw median.

Benchmarks 113

Benchmarks Startup SaaS Revenue 113

OpenView Labs

NOVEMBER 12, 2020

When we were preparing the 2020 expansion SaaS benchmarking survey, our biggest question was: “How did COVID-19 and the economic downturn affect private SaaS companies?” Meanwhile, companies that have experienced more moderate growth than anticipated ( Slack , SAP ) have seen their stock prices get slashed.

Benchmarks 52

Benchmarks Scale Technical Review SaaS 52

Chart Mogul

JUNE 1, 2023

ChartMogul lost a large number of legacy customers when migrating them to a new pricing model, however, the highly engaged `good fit` customers enabled ChartMogul’s continued growth. Read the whole story of our pricing migration told by Ingmar, our VP of Customer Success. Examples Mapping your ICP can be useful across teams.

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Retention Metrics Benchmarks SaaS 90

CustomerSuccessBox

FEBRUARY 17, 2022

Because net dollar retention refers to the percentage of your business that you’ve been able to keep and grow over time, a rate of at least 100% would be a suitable benchmark. NDR Benchmarks, Formula & more appeared first on. Gross Dollar Retention. The GDR percentage might be anywhere between 0% and 100%.

Benchmarks 52

Benchmarks Retention Churn Subscription 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

SaaStr

AUGUST 10, 2023

Is the pricing of seed rounds impacted since the downturn? What are the ARR benchmarks required to get a good growth round term sheet today? Prior to SaaStr, Jason was an entrepreneur, selling EchoSign to Adobe for $100M where it is now a $250M ARR product. In Today’s Episode with Jason Lemkin We Discuss: 1.

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Benchmarks Investment Pricing Product Marketing 212

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.

Benchmarks 113

Benchmarks Startup Sales Hiring Compensation 113

SaaStr

MAY 25, 2023

So ChartMogul pulled together some nice data and statistics across its 2,100 SaaS customers and users for its 2023 Benchmarks report here. My favorite hart is this one, that tracks how Top Quartile SaaS companies have grown the past few years: What it shows it what we all sort of know, but puts specifics on. appeared first on SaaStr.

SaaS 195

SaaS Benchmarks Startup Pricing 195

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals.

Pricing 52

Pricing Subscription Payment Features Strategy 52

ProfitWell

FEBRUARY 20, 2020

If you’re not matching up with customers’ expectations on price, whether you’re coming in under or over the current trends, it’s impossible for your company to survive. Competitor based pricing is one of the best tools for finding this match. What is competitor based pricing? Building your competitor based pricing strategy.

Pricing 54

Pricing Benchmarks Market Research Subscription 54

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The market is clearly pricing in lower rates + reacceleration of growth. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported. net retention and CAC payback).

Cloud 161

Cloud Software Benchmarks Scale 161

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

APRIL 29, 2020

Talking about the different pricing methods, for me, is equivalent to a kid in a candy store. Of course, like a candy store, there are many pricing options but you can’t use them all. We of course have our favorite pricing methods here at ProfitWell, but it’s good to understand the differences, good or bad. Value-based pricing.

Pricing 52

Pricing Subscription Payment Features Airlines 52