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Dear SaaStr: Should I Remove Monthly Subscriptions to Drive Down Churn?

SaaStr

Dear SaaStr: Should I Remove Monthly Subscriptions to Drive Down Churn? Annual plans only mask churn. It simplifies your revenue model and reduces churn on paper, but it also creates friction for SMBs who might hesitate to commit to an annual plan upfront. Measure conversion rates, churn, and LTV. Generally — no.

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The Complete Guide to SaaS Pricing Strategy

Tom Tunguz

Third, contracts mitigate churn rates because the customer is only making a renewal decision once per year, instead of 12x per year. Similarly, Salesforce began with a usage-based approach before shifting to annual seat contracts when churn rates became significant and revenue predictability faltered. What should my unit of pricing be?

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Dear SaaStr: When Should a SaaS Company Allow Month-to-Month Contracts vs. Requiring Annual?

SaaStr

Annual contracts combined with prepaid cash are a huge benefit, when done right: You get all the cash up-front (this is how I went cash-flow positive in fact) — IF you can collect it a timely fashion; and Your churn almost by definition goes down, at least nominal churn. And that includes pricing.

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Dear SaaStr: What Are The Most Common Mistakes First-Time Founders Make Building Enterprise Sales Teams?

SaaStr

These folks are used to having brand recognition, warm leads, and established processes. If these teams arent working together, deals will stall, and churn will rise. Ignoring Churn : Closing deals is great, but if customers dont renew, youre in trouble.

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SaaS Essentials: Failed Payment Solution Guide

With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential. Achieving your retention goals starts with the right solution.

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The Ultimate Guide to Software Customer Churn

Stax

The average churn rate for the software industry as a whole is 14%. Thats actually one of the lowest churn rates across all industries. That said, industry experts agree that your SaaS companys goal churn should be below 2%. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.

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How to Leverage Pricing and Packaging to Drive Growth, Revenue, and Profit with Miro, Loom, OpenAI, and Splunk 

SaaStr

Though it seems counterintuitive to maximize revenue, Miro intentionally set the threshold high enough that when someone bought Miro, they were getting the collaborative value because the users needed to use the product as a team vs an individual (which early data showed the highest churn in).

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Monetizing Analytics Features: Why Data Visualizations Will Never Be Enough

Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.