Tom Tunguz

MARCH 24, 2019

These metrics are the result of exceptional product market fit. If we examine net dollar retention, the current value of last year’s cohort today net of churn and gross of expansion, we see Zoom is in the top decile at 140%. Exceptionally fast and efficient growth define Zoom, the next iconic video conferencing platform.

Metrics 279

Metrics Benchmarks Scale Acquisition 279

SaaStr

MARCH 12, 2025

“We just need one great CMO who can do it all” – Founders often search for a marketing unicorn who excels at brand, demand gen, product marketing, and digital programs. A smaller number of high-quality leads that convert at higher rates is vastly superior to a flood of poor-fit prospects.

Sales Hiring 202

Sales Hiring Marketing Technical Review Underperforming Technical Team 202

SaaStr

MAY 28, 2025

Monday.com Has Achieved Rule of 40 with Room to Spare The Rule of 40 (growth rate + profit margin should exceed 40%) is a benchmark for successful SaaS companies. This suggests they’ve found product-market fit across multiple customer segments, from SMBs to enterprises, and can effectively sell at multiple price points.

Scale 199

Scale SMB Acquisition Enterprise 199

Unbounce

APRIL 15, 2021

There are even a lucky few marketers who hardly noticed it—at least in terms of their conversions. That elusive product-market fit just kinda works itself out when you’re peddling business casual pajamas.). And how has the digital marketing landscape changed between the simpler days of 2019 and today?

Benchmarks 145

Benchmarks Machine Learning Artificial Intelligence AI Search 145

Tom Tunguz

NOVEMBER 12, 2023

Compare that to the benchmarks in 2013! Snowflake is second, pushed by their best-in-class net dollar retention (NDR). Both these companies also focus on enterprise accounts - in contrast to Bill.com at the bottom, which targets small businesses. In addition to the dated charts! I wonder what trends we’ll see in 2033.

Software Review 331

Software Review Trends Revenue Software 331

User Pilot

SEPTEMBER 4, 2024

web analytics, in-app surveys , product analytics). Set benchmarks and targets using industry standards. Userpilot is a product growth platform that you can use to collect, visualize, and analyze user behavior data in custom dashboards. Set benchmarks and targets Vanity metrics tend to lose their meaning without proper context.

Product Marketing 105

Product Marketing Metrics Customer Lifetime Value Social Media 105

Casey Accidental

JUNE 9, 2020

Because it is the single most important factor in product success. Retention is not only the primary measure of product value and product/market fit for most businesses; it is also the biggest driver of monetization and acquisition as well. Create a new product : Struggling to retain users at all?

Retention 145

Retention Benchmarks Payments Payment Methods 145

Tom Tunguz

SEPTEMBER 16, 2017

How much should a SaaS startup invest in sales and marketing at different stages of the business? This is a very nuanced question, but benchmarks do provide some guidance for what is reasonable. It’s not a fully fledged model, but a very basic scenario forecasting tool.

Investment 274

Investment Startup Marketing Sales 274

User Pilot

AUGUST 1, 2024

Product marketing is the process of bringing a product to market, and a well-curated product marketing strategy is key to understanding customer needs and driving adoption. TL;DR A product marketing strategy is a roadmap for how a new product will be positioned, priced, and marketed.

Product Marketing 105

Product Marketing Strategy Marketing Underperforming Technical Team 105

User Pilot

JULY 21, 2024

According to our benchmark, the average month-1 retention rate in SaaS companies is 46.9%. Let’s explore our product metrics benchmark and learn: The definition of month-1 retention rate and why it matters. Check our product metrics benchmark report. Average month-1 retention statistics for different segments.

Benchmarks 105

Benchmarks Retention Healthcare Scale 105

SaaStr

SEPTEMBER 23, 2022

Cloud founders are feeling the pressure of the current climate, and it’s understandable why: They’re grappling with inflation, rising interest rates, and all of that against a backdrop of a compressing public market. . These cloud businesses have product-market fit, scalable GTM, and a growing customer base. .

Cloud 304

Cloud Benchmarks Trends Business Model 304

Chart Mogul

MARCH 1, 2023

See chapter 2 in the report to learn more about net retention benchmarks. In the pre-product market fit stage of the business, net retention is usually poor. As startups grow and find product-market fit, net retention improves. When benchmarking, always keep the stage of your business in mind.

Benchmarks 98

Benchmarks Retention B2C Business 98

User Pilot

MAY 17, 2021

Are you tracking the right Product Marketing KPIs? With so many product growth insights available to every product marketer, it’s sometimes hard to understand which metrics are relevant and which you should be tracking to measure the success of your product marketing. What is Product Marketing?

Product Marketing 98

Product Marketing Metrics Customer Lifetime Value Marketing 98

SaaStr

APRIL 13, 2022

One-third of the companies that came out of Y Combinator were successful—in being acquired, going public, or hitting their growth benchmarks. Of course, if Amplitude were among the first one-third, the successful businesses, then lasting two years wouldn’t be a problem and there would be time to find the right product-market-fit.

Construction 245

Construction Benchmarks Product Marketing Enterprise 245

User Pilot

NOVEMBER 29, 2024

We’re tasked with achieving product-market fit and driving growth, but we have no direct control over the people who build, market, and support it. Most new products never find their product-market fit. Understanding the product metrics Let’s have two products – A and B.

Metrics 105

Metrics Scale Acquisition Retention 105

Tom Tunguz

SEPTEMBER 28, 2014

SaaS companies, presumably having achieved product market fit, quickly hire large sales and marketing teams. Sales teams require a certain amount of time to learn the product, the sales pitch and build a book of business to eventually achieve quota. In year 4, the paths diverge. Again, I’ve omitted the outliers.

Startup 222

Startup Scale Sales Hiring Benchmarks 222

OpenView Labs

FEBRUARY 2, 2021

With last year in the rearview mirror, we can look at OpenView’s 2020 Expansion SaaS Benchmarks Report to tell us how exactly COVID-19 impacted SaaS companies. The report’s authors already laid out how to get back to hyper-growth , and their article inspired me to share my predictions for 2021’s most important product marketing trends: 1.

Product Marketing 91

Product Marketing Trends Scale Marketing 91

SaaStr

SEPTEMBER 7, 2022

Product-Market Fit . Hitting $1M ARR is the benchmark to figure out if you have a product-market fit.” – Veronika Riederle, CEO @Demodesk. Going from $0 to $1M ARR is the first baby step for any SaaS startup. Getting the first ten customers is like shooting in the dark. How to get the first ten customers.

Sales Hiring 246

Sales Hiring Scale Revenue Sales 246

User Pilot

JUNE 16, 2024

Looking for reliable metrics benchmarks to gauge your product performance and inform your decisions? That’s what you can find in Userpilot’s Product Metrics Benchmark Report. We also share 6 key insights for product managers that we found particularly interesting. Book the demo! Time to Value (TTV).

Benchmarks 81

Benchmarks Metrics Sales Recruiting Acquisition 81

The Angel VC

MAY 8, 2015

As a caveat, I'm going to mention some benchmark numbers but it's very important to note that none of these numbers can be viewed in isolation. Ideally you have strong organic growth (which is strong proof of product/market fit) as well as some success with paid customer acquisition channels (which can be scaled more easily).

Development Team Review 252

Development Team Review Software Review Scale Acquisition 252

Intercom, Inc.

FEBRUARY 14, 2019

Your next big product is probably right in front of you. Find product market fit again and again. If you are hiring for a role that you aren’t super familiar with, or at a scale you haven’t been at before, learn and benchmark first. Find it by watching what your customers do, not what they say. Which could you solve well?

Strategy 188

Strategy Benchmarks Product Marketing Scaling 188

SaaSOptics

DECEMBER 7, 2021

How to Raise Capital: Preparation, Benchmarks, and Best practices [Webinar Recap]. They shared their experiences and insights into the importance of good data hygiene, how it impacts forecasting and funding, and using industry benchmarks to determine valuation. Raise Capital by Benchmarking Data to Determine Valuation.

Benchmarks 77

Benchmarks Scale Venture Capital Outsourced Development 77

The Angel VC

NOVEMBER 29, 2013

At the bottom I noted what these phases usually mean in terms of the stage of your product and company and which funding level it typically corresponds with. Post product/market fit, pre scale As you’re slowly but surely getting to product/market fit and starting to get the first paying customers (yay!),

Scale 190

Scale Startup SaaS Customer Lifetime Value 190

SaaStr

MARCH 17, 2020

Pendo announced a new offering aimed to help startup companies accelerate product-market fit, and prove that product traction to early stage investors. The company also unveiled ProfitWell Benchmarks to see how your company stacks up against similar firms.

Sales Hiring 233

Sales Hiring Scale Payment Features Marketplace as a Service 233

Sales Hacker

NOVEMBER 8, 2024

Efficient TTV highlights an optimized onboarding experience and provides a clear indicator of early product satisfaction. Here’s how to drive early value effectively: In-product value Measure TTV : Set a quantifiable benchmark for how long it should take a new user to reach their first “aha moment.”

Scale 109

Scale Sales Recruiting Sales Hiring AI Search 109

Tom Tunguz

OCTOBER 21, 2017

This rivalry causes four major responses: Verticalization - compete with a horizontal player by picking one customer segment and building a product better suited to them. Trades market size for better product market fit. Segmentation - focus on SMB, Mid-Market, or Enterprise, to play where competition isn’t present.

Venture Capital 189

Venture Capital SaaS Machine Learning Artificial Intelligence 189

SaaStr

JANUARY 21, 2022

However, they were wrong about these assumptions, which kept them from identifying gaps and assessing the extensibility of their Enterprise product-market-fit. Simply because their product was being used in a professional setting didn’t mean it was a product-market fit.

Scale 246

Scale SMB Enterprise Sales Hiring 246

SaaStr

NOVEMBER 30, 2023

The four stages of growth are: Early stage Early growth Growth Pre-IPO Each of those stages has key GTM milestones, benchmarks, and team-building strategies that allow you to grow effectively. But to develop a GTM strategy, you must have Product Market Fit. The Early Stage — $0 to $20M ARR The early stage is crucial for GTM.

Scale 274

Scale Sales Hiring Scaling Outsourced Development 274

User Pilot

NOVEMBER 27, 2023

As opposed to this, early-stage startups will understandably have a higher churn rate, since they still may not have product-market fit yet. As a general rule, a 5% to 7% annual churn rate and around 1% or less monthly churn are considered acceptable churn rates for established SaaS companies. What is the customer retention rate?

Churn 102

Churn Retention Benchmarks Customer Lifetime Value 102

Chart Mogul

JUNE 1, 2023

High retention is a strong indication of product-market fit. Retention improves after you find product-market fit; it can go up to 78% when your business reaches $1m and later $3m in ARR. Companies with retention rates over 85% grow 1.5-3x 3x faster, in fact, which is a staggering number.

Retention 90

Retention Metrics Benchmarks Scale 90

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. More than 500 SaaS companies participated in this year’s survey, which covered topics like financial performance, product led growth adoption, founder priorities and much more. But benchmarks alone are not enough.

Benchmarks 58

Benchmarks Underperforming Technical Team Scale SaaS 58

OPEXEngine

NOVEMBER 23, 2021

What 14 startup investors & advisors taught us about chasing (and finding) product-market fit. It’s been a long-held notion in startup circles that lack of product-market fit will doom even the scrappiest of founders to fail. The problem with defining product-market fit. And this is what we heard.

Product Marketing 52

Product Marketing Marketing VP of Engineering Scale 52

OPEXEngine

NOVEMBER 23, 2021

What 14 startup investors & advisors taught us about chasing (and finding) product-market fit. It’s been a long-held notion in startup circles that lack of product-market fit will doom even the scrappiest of founders to fail. The problem with defining product-market fit. And this is what we heard.

Product Marketing 52

Product Marketing Marketing VP of Engineering Scale 52

User Pilot

SEPTEMBER 23, 2022

What is the product-market fit framework? How is product market fit different from product-customer fit? What should a product manager do to achieve and maintain the PMF? Product-market fit and product development are interconnected and happen in parallel. Let’s jump in!

Product Marketing 59

Product Marketing Marketing Interviewing Retention 59

SaaStr

JUNE 13, 2019

The first goal is to share with you benchmarks. We believe benchmarks are really useful to help you build your business, because they provide good goalposts for financial planning and for goal setting. Our second topic, benchmarks around retention. There are two goals of this analysis. Logo retention.

Scale 252

Scale Sales Hiring SMB Payment Services 252

OpenView Labs

FEBRUARY 4, 2019

The fastest growing SaaS companies see 89% annual logo retention and 109% net dollar retention (NDR) in their cohorts, according to data from OpenView’s SaaS benchmarking survey. Allows you to easily benchmark against peers on an ongoing basis. This is a great measurement of product stickiness and product-market fit.

Benchmarks 111

Benchmarks Retention Churn Metrics 111

Kellblog

DECEMBER 3, 2019

I get asked these questions all the time by startup CEOs, CMOs, marketing VPs, and marketing directors. You can turn to financial benchmarks, like the KeyBanc Annual SaaS Survey for some great high-level answers. Or you can buy detailed benchmark data [1] from OPEXEngine. They’re not based on your operating history.

Startup 98

Startup Benchmarks Leadership Sales 98