OPEXEngine

JUNE 4, 2020

Last week we published the most recent SaaS & Software benchmarks in our platform used by companies in their FP&A analyses for management, boards and investors. In the 2020 Benchmarks, we added a number of new benchmarks around compensation expense, plus, a measure of the SaaS Cash Conversion Rate, popularized by Bessemer.

Benchmarks 45

Benchmarks SaaS Technical Review Software Review 45

SaaStr

AUGUST 10, 2023

What happens to the many companies who raised pre-emptive Series As and have 10 years of runway but no product-market fit? What happens to the Series A and B market in the next 18 months? What are the ARR benchmarks required to get a good growth round term sheet today? When does it come back? When does it come back?

Benchmarks 225

Benchmarks Investment Pricing Product Marketing 225

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 79

Churn Retention Benchmarks Customer Lifetime Value 79

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 58

Product Marketing Trends Scale Marketing 58

Andreessen Horowitz

DECEMBER 4, 2023

Here’s how I wish more growth-stage teams approached their R&D spend: Use benchmarks to initially ballpark your overall spend (but remember there are good reasons to vary from benchmarks). Map your spend to your product roadmap, then attach an expected ROI and timeline for the expected return.

Underperforming Technical Team 124

Underperforming Technical Team Benchmarks CTO Hire New CTO 124

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 41

Benchmarks Underperforming Technical Team Scale SaaS 41

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 239

Cloud Trends Benchmarks Business Model 239

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 200

Construction Benchmarks Product Marketing Enterprise 200

SaaStr

DECEMBER 3, 2021

10 SaaStr 211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk, and Kustomer. #9 . #11 SaaStr 309: David Skok on The 9 Stage Model To Get A B2B Company To Get Repeatable, Scalable & Profitable Growth. #10 1 SaaStr 221: HBS Sr. . #2 1 SaaStr 221: HBS Sr.

Scale 205

Scale Sales Hiring SMB Benchmarks 205

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 206

Sales Hiring Scale Revenue Sales 206

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 SaaS 274

User Pilot

OCTOBER 15, 2023

They are website visitors to a free trial, a free trial to product-qualified lead (PQL), PQL to paying users, and growth metrics conversion. Use benchmarks to monitor your performance to see how well each stage converts. The industry benchmark for this metric sits at 8.5%. The average benchmark for this conversion is 4%.

SaaS Payments 94

SaaS Payments Payment Methods Payment Solutions Payments 94

User Pilot

MAY 1, 2024

The product management team is primarily responsible for owning the product experience but is supported by the engineering, marketing, and customer success departments. In most SaaS companies, the product management team includes product managers, product marketers , and UX designers.

Customer Lifetime Value 84

Customer Lifetime Value User Experience Retention Scale 84

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 237

Scale Sales Hiring Scaling Outsourced Development 237

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

User Pilot

FEBRUARY 7, 2024

This guide will go over what the free trial conversion rate is, why it’s important to track, how to calculate it, what a good benchmark is, and the factors that influence it! There are a few important reasons for tracking your free trial conversion rate: Benchmarking. Evaluating PMF.

SaaS Payments 52

SaaS Payments Payments Payment Solutions Scale 52

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

Point Nine Land

OCTOBER 23, 2023

It helps keep the product team focused on customer feedback and providing value in exchange for revenue. So, ensuring the founder(s) have a finger on the pulse of product-market fit is key to growing revenue, and it also helps make it clear who to hire next and with which sales goals/targets. One way is to get the timing right.

Sales Hiring 125

Sales Hiring Scale Technical Advisors Technical Cofounder 125

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 210

Scale SMB Enterprise Sales Hiring 210

SaaStr

JANUARY 24, 2020

Where SaaS Stands Today: Benchmarks and Lessons from 16,426 SaaS companies. — Inside Intercom: The Marketing Secrets of Scaling One of the Fastest Growing SaaS Startups. — 5 Customer Marketing Strategies That are Guaranteed to Grow Your Business with Sprout Social. . — Masterclass: Churn is dead.

Scale 192

Scale Leadership Churn Benchmarks 192

Subscription Flow

JANUARY 5, 2024

These metrics can assist SaaS product owners and managers in measuring customer satisfaction, retention, acquisition, revenue, profitability, and growth—the metrics we will be going over in this blog to help you discern how to use B2B SaaS metrics for the betterment of your company.

B2B 52

B2B Metrics SaaS Benchmarks 52

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.

SaaS 188

SaaS Venture Capital Finance Machine Learning 188

User Pilot

JULY 18, 2023

It also helps in identifying short-term trends, setting long-term goals, benchmarking performance, and making critical decisions to improve customer retention. Annual churn rates will flatten out the influence of seasonality or marketing campaigns on churn so you can see your business’s long-term story and set benchmarks for yourself.

Churn 84

Churn Payments SaaS Payments Payment Solutions 84

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 105

Benchmarks Retention Churn Metrics 105

Chart Mogul

APRIL 27, 2022

Then, we dive into churn benchmarks. In this section, we’ll look at benchmarks for gross and net MRR churn split by MRR and ARPA bands. If you’re looking for customer churn benchmarks , we shared them in a previous post. Why look at churn benchmarks by ARPA bands? Gross MRR Churn Benchmarks. What Is Churn?

Churn 52

Churn Benchmarks Metrics Revenue 52

Chart Mogul

MARCH 23, 2023

Net retention benchmarks What is gross revenue retention (GRR)? Gross retention benchmarks Gross Retention vs Net Retention 2 tips for tracking retention rates 3 tactics to improve your retention rate Net Revenue Retention To build a healthy SaaS business, revenue retention should be at the center of your business.

Retention 52

Retention Metrics Revenue Scale 52

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 208

Startup Scale Sales Hiring Benchmarks 208

OPEXEngine

MAY 18, 2021

The growth stages are defined as: Early Stage – Product/Market Fit Stage, . Experienced early-stage investors will value if a company is following an iterative, data-driven process to determine product/market fit or just randomly throwing strategies against the wall to see what sticks.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

User Pilot

MAY 30, 2023

Measure your product-market fit Haven’t confirmed if you have achieved product-market fit yet? The Sean Ellis test is a widely accepted metric that can indicate product-market fit based on survey responses. Public roadmap survey example. PMF survey example.

Scale 75

Scale Market Research User Experience Benchmarks 75

User Pilot

AUGUST 23, 2023

This will allow you to identify trends and patterns that suggest how well the product performs in the market and assess product success. Evaluate product performance: Based on the analysis, you have to make regular product evaluations to assess its performance against predetermined benchmarks and goals.

Technical Advisors 82

Technical Advisors Data Analysis Technical Review Software Review 82

OpenView Labs

FEBRUARY 3, 2022

As part of our last three annual finance and operating benchmarks surveys, we’ve asked nearly 2,000 startup founders and leaders of B2B SaaS businesses this simple question: “What’s keeping you up at night?”. This data point isn’t like our typical benchmarks. Hire for these key positions and your other anxieties may be reduced.

Sales Hiring 82

Sales Hiring Sales Recruiting Scale Startup 82

OPEXEngine

AUGUST 31, 2021

Editor’s note: We’d like to thank our friends at OPEXEngine for contributing their benchmarks, insights, and expertise to this article. Tech debt refers to the cost of redeveloping existing products and code that wouldn’t otherwise be able to scale or evolve over time to meet shifting consumer needs. Less than $20M revenue.

Technical Review 52

Technical Review Underperforming Technical Team Software Review Scale 52

OPEXEngine

AUGUST 31, 2021

Editor’s note: We’d like to thank our friends at OPEXEngine for contributing their benchmarks, insights, and expertise to this article. Tech debt refers to the cost of redeveloping existing products and code that wouldn’t otherwise be able to scale or evolve over time to meet shifting consumer needs. Less than $20M revenue.

Technical Review 52

Technical Review Underperforming Technical Team Software Review Scale 52

User Pilot

AUGUST 16, 2023

You can use user retention metrics to identify if there’s a product-market fit problem rather than a retention problem. When developing your product , address app performance issues to improve user retention. You should measure it at different stages of your product development.

Retention 97

Retention Social Media Customer Lifetime Value Churn 97

Intercom, Inc.

NOVEMBER 17, 2020

We now had the maturity as an engineering organization to be able to allow a team of engineers to focus on solving this sort of problem, as well as the confidence to plan years in advance – something that just doesn’t make sense for a scrappy new startup fighting for product market fit. Benchmarking our clusters.

Engineering 151

Engineering Outsourced Development Benchmarks Scaling 151

User Pilot

APRIL 18, 2023

The 4 types of customer satisfaction surveys are Net Promoter Score (NPS) surveys, customer satisfaction score (CSAT) surveys, customer effort score (CES) surveys, and product-market fit (PMF) surveys. In addition, adequately designed surveys offer insights that become the basis for benchmarking customer satisfaction.

Underperforming Technical Team 81

Underperforming Technical Team Scaling Onboarding Product Marketing 81

OpenView Labs

AUGUST 20, 2020

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 57

Benchmarks Retention Churn Metrics 57