Predictable Revenue

JUNE 21, 2021

Mark is the Managing Director of Stage 2 Capital, a Senior Lecturer at Harvard Business School, and was formerly the Chief Revenue Officer at HubSpot. Additionally, he is the author of the bestselling book "The Sales Acceleration Formula".

Scale 232

Scale Scaling Revenue Management 232

User Pilot

MAY 21, 2024

Churn rates can be calculated simply with the number of customers lost over a specific period or more complexly to include revenue lost, highlighting the financial impact and informing strategic business decisions. Understanding how to calculate churn rate is crucial for businesses aiming to retain customers and minimize revenue loss.

Churn 52

Churn Retention Software Review Metrics 52

User Pilot

JULY 13, 2023

Are you trying to find out how to measure growth of a company? Growth is the lifeblood of any company, and it is paramount for any SaaS company. Measuring a company’s growth helps you understand how much you progressed and where you stand. What is the company’s growth rate?

Metrics 98

Metrics Customer Lifetime Value Benchmarks Churn 98

User Pilot

APRIL 23, 2023

The right metrics and data will offer valuable product growth insights to help you make data-driven decisions about optimizing your products’ performance. Tracking these metrics helps you gain growth insights, track user engagement , and measure customer satisfaction. Lifetime value determines revenue potential from each customer.

Metrics 97

Metrics Customer Lifetime Value SaaS Scale 97

SaaStr

NOVEMBER 15, 2022

For many, it’s proven to be a year of growth and resiliency. This understanding started a shift from GAAP metrics (Revenue, Gross Profit, EBITDA) to SaaS metrics (ARR, NDR, LTV, CAC, etc.) Recurring Revenue = 90% +. The Evolution of Language For SaaS Business. as a common language to analyze a cloud business. ASP = $30K +.

Metrics 207

Metrics Machine Learning Artificial Intelligence Technical Review 207

User Pilot

JULY 18, 2023

Tracking your customer churn rate will help you keep tabs on business growth. Types of churn rates you should calculate: customer churn rate, revenue churn rate , and involuntary churn rate. Monthly churn rate formula: number of users you lost over the month/number of users you had at the beginning of the month X 100.

Churn 98

Churn Payments SaaS Payments Payment Solutions 98

SaaStr

JULY 13, 2022

Ideally, every company’s growth story would follow a formula. Finally, growth occurs when sales, product, and marketing can come together. In reality, avoidable mistakes stop companies from achieving their true growth potential. . Or the revenue their business will generate by month-end.

Scale 214

Scale Sales Hiring Revenue Marketplace as a Service 214

Subscription Flow

DECEMBER 27, 2023

Let us dig straight into the meat of this blog: customer renewal rate is way of determining the imprint of customers who renew their subscriptions to your product or service. This is why more precise revenue forecasts translate into more precise sales and marketing budgets and reduced wasteful spending. What Is Customer Renewal Rate?

SaaS 64

SaaS Subscription Payment Features Forecasting 64

Stax

MARCH 12, 2024

DSO, or Days Sales Outstanding, is a formula and KPI for small and medium-sized businesses to measure the average number of days it takes to collect payments from customers. In this blog, we’re going to explore the importance of DSO, how to calculate it, and strategies to help improve DSO to create a healthier business.

Payment Features 88

Payment Features Payment Methods Payment Services Stax 88

ChurnZero

DECEMBER 29, 2020

Top 10 Blog Posts from 2020. This article dives into each side’s argument as they debated for and against Customer Success owning these revenue sources. Following the trust formula from Rachel Botsman, a world-renowned trust expert, we share some of our favorite tactics to engender customer trust and confidence.

Sales Hiring 98

Sales Hiring Scale Technical Review Software Review 98

SaaStr

FEBRUARY 7, 2024

In today’s world, there’s a clear shift in what founders, boards, and investors are all after — scalable, low-CAC (customer-acquisition cost) growth strategies. Sales-assisted, product-led growth strategies that close Enterprise leads. How to use community as a driver of product-led growth. vs. $1.80, which is a big difference.

Scale 218

Scale Sales Hiring Strategy Marketing 218

User Pilot

AUGUST 9, 2023

You calculate the retention rate formula by taking the number of customers at the end of a timeframe and minus the new customers acquired, divided by the number of customers at the start of the period. Other important customer retention metrics are revenue churn rate, Net Promoter Score , repeat purchase rate, and customer lifetime value.

Retention 98

Retention Customer Lifetime Value Churn Metrics 98

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. Anyone looking to grow their customer success team, or rather, drive growth and NRR, will have some valuable takeaways. What Does NRR Aim To Answer Most people know the formula for NRR. This is applicable at every stage of growth. Everything!

Scale 164

Scale Sales Hiring Customer Success Scaling 164

SaaStr

JANUARY 2, 2021

Almost none of us are happy with our monthly growth rate once we hit $1-$1.5m But there is a proven formula to get from $1m to $10m the most efficiently: First, double down on what is working. Second-order revenue and a mini-brand start to become huge accelerators around Year 3. Revenue per lead “magically” goes up.

Sales Hiring 294

Sales Hiring Headcount Pricing Market Segmentation 294

User Pilot

JUNE 2, 2023

Reaching product adoption is critical for subscription-based business models where revenue comes after the initial conversion. Formula to calculate the free trial conversion rate. There’s no universal formula for calculating time to value. Formula for calculating activation rate. Formula for feature adoption rate.

Metrics 98

Metrics Customer Lifetime Value Churn Onboarding 98

Totango

FEBRUARY 12, 2021

The answer directly relates to your success at retaining customers and maintaining revenue levels. Strive for lower churn to increase customer retention and revenue. This formula provides an easy way to calculate churn. However, it can be difficult to interpret when churn changes rapidly due to accelerated customer growth.

Churn 82

Churn Retention Customer Success Subscription 82

User Pilot

FEBRUARY 4, 2023

Wondering how you can make the most of your growth analytics to boost average revenue per user, and retention, and drive product growth ? In this article, we cover everything you need to know about growth analytics: How to perform a growth analysis using an easy five-step process. What are growth analytics?

Acquisition 98

Acquisition Retention Churn Metrics 98

SaaStr

APRIL 26, 2022

Don’t get formulaic with your outreach to quality candidates. What I care much more about is growth rate –– that’s [sales and marketing leaders’] DNA. We want to grow revenue; we want to grow market share; we want to deepen wallet share. Tip Six: Both CMO and CRO Should Drive Revenue and LTV. Tip Three: Better Recruiting.

Leadership 181

Leadership Sales Hiring Sales Recruiting Scale 181

User Pilot

JULY 30, 2023

While it’s important to acquire new customers for growth, retaining existing customers is imperative to ensure long-term success. Both acquisition and retention costs help drive business growth. Customer acquisition cost formula. Customer retention cost formula. Track and analyze user behavior.

Acquisition 98

Acquisition Retention Customer Lifetime Value User Experience 98

Totango

MAY 14, 2021

To track CRR, you can use the formula: [(E-N)÷S] x 100 = CRR. To apply this formula, start by taking the number of customers you have at the end of the time frame you’re tracking (E) and subtracting any new customers you acquired during that period (N). Revenue Churn Rate. The result is your customer retention rate.

Metrics 65

Metrics Retention Software Review Customer Lifetime Value 65

User Pilot

JUNE 26, 2023

Want to track the different types of product metrics to get product growth insights ? Product metrics are critical for product growth managers to develop the right product strategies and drive continuous value for customers. This will increase customer lifetime value and drive revenue growth.

Metrics 96

Metrics Customer Lifetime Value SaaS Acquisition 96

User Pilot

JANUARY 31, 2023

Product launch metrics provide valuable insights that you can use to improve your product and increase product growth. A successful product launch helps SaaS companies establish themselves in the market, increase brand awareness, and drive more revenue. Customer Acquisition Cost (CAC) formula. Customer Activation Rate formula.

Metrics 98

Metrics Scale Software Review Retention 98

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. What’s negative revenue churn? Four ways to reduce revenue churn right now be honest How well do you know your business?

Churn 118

Churn Revenue Benchmarks Pricing 118

User Pilot

MAY 31, 2023

How to calculate product adoption rate You can calculate the product adoption rate with the following formula: Product Adoption Rate = (New Active Users / Total Signups) x 100 New active users are the number of customers that have become active in a specific time frame.

Metrics 98

Metrics Customer Lifetime Value Churn Retention 98

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. A churned user matters because it’s harmful to growth. High customer churn tanks future growth because it’s hard to offset the loss in monthly recurring revenue.

Churn 98

Churn Software Review SaaS User Experience 98

The Angel VC

MARCH 23, 2016

I received a lot of great feedback on the template and the original post remains one of the most viewed posts on this blog up to this day. Therefore the key drivers of my imaginary startup are organic growth rate, marketing budget and customer acquisition costs, conversion rate, ARPU and churn rate. Black and grey numbers are computed.

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. Net Revenue Retention (NRR) is a SaaS metric that calculates the percentage of revenue retained from existing customers over a specific period of time.

Retention 98

Retention Revenue Software Review SaaS 98

Totango

NOVEMBER 10, 2021

There is no one-size-fits-all formula for designing customer success compensation plans. It is great to reward your employees for driving growth, however, putting too much focus on revenue generation could drive your CS team to be focused more on sales than success, which can be off-putting to your customers.

Compensation 87

Compensation Customer Success Revenue Churn 87

Totango

MARCH 5, 2021

It’s the only way to be successful in this customer-centered economy and ensure scalable long-term revenue. This increases your revenue as well as the effectiveness of your marketing, decreasing your marketing costs. Finally , improving your CRR directly increases your revenue and profits. E-N)÷S) x 100 = CRR. 95 x 100 = CRR.

Retention 88

Retention Churn Customer Lifetime Value Customer Success 88

OPEXEngine

APRIL 27, 2021

High growth software companies are valued based on forward revenue multiples. In other words, to calculate the enterprise value of a business, you multiply the revenue by the forward multiple. The answer: revenue growth and sales efficiency dominate the model. Gross margin – gross profit divided by revenue.

Software 52

Software Metrics Revenue Enterprise 52

Totango

NOVEMBER 10, 2021

There is no one-size-fits-all formula for designing customer success compensation plans. It is great to reward your employees for driving growth, however, putting too much focus on revenue generation could drive your customer success team to be focused more on sales than success, which can be off-putting to your customers.

Compensation 76

Compensation Customer Success Revenue Churn 76

User Pilot

AUGUST 10, 2023

In today’s competitive landscape, acquiring new customers is essential to any successful business’s or product’s growth. Adopting a product-led growth strategy to improve customer retention and maximize customer lifetime value. Customer acquisition cost formula. LTV: CAC ratio formula.

Acquisition 96

Acquisition Benchmarks Customer Lifetime Value B2B 96

Chaotic Flow

JANUARY 15, 2013

Since publishing the original SaaS metics blog series and subsequent SaaS Metrics Guide to SaaS Financial Performance , I’ve received numerous inquiries on various details and hidden gotchas in SaaS metrics implementation. SaaS MRR churn measures the erosion of SaaS monthly recurring revenue (MRR). In the formula above, the ?

Churn 142

Churn Metrics SaaS B2C 142

Baremetrics

JULY 8, 2021

Sometimes payments collected by Stripe weren’t recorded correctly and therefore wouldn’t count towards MetricFire’s Monthly Recurring Revenue (MRR). Here they can view MRR, Net Revenue, Average Revenue Per User, MRR growth rate, and 17 other metrics- all in one place. Doing this repeatedly, however, was not sustainable.

Payment Services 105

Payment Services Payment Solutions Payments SaaS Payments 105

Incredo

JULY 8, 2019

2 Your Company Should Have Growth Problems. SaaS life cycle stages… Startup, growth, and maturity… As you can see, a startup to growth and growth to maturity are the main stages you have to go through as a startup owner or CEO. The positive side is that business growth can be measurable, predictable and scalable.

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Outsourcing Services Scale Outsourced Development Sales Hiring 200

Totango

APRIL 30, 2021

The procedure for calculating CAC can be expressed through the formula: CAC = Total marketing and sales costs for customer acquisition / Total number of customers acquired. Developing marketing content for blogs, social media and video platforms. Then divide by the number of customers acquired during that period.

Acquisition 64

Acquisition Retention Social Media Advertising 64