article thumbnail

Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 183
article thumbnail

Cohorts lead to Performance Benchmarks

OPEXEngine

Most SaaS executives can relate to a friendly debate they’ve had at a board or leadership team meeting about what percentage of revenue should come from “upsells” to existing customers or what is “healthy churn.” That’s because benchmarks need to fit the business model and require context in order to be applied in a relevant way.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Product User Segmentation: What Is It and How To Implement Segmentation in Your SaaS Product?

User Pilot

You can also learn why different segments churn more often and fix the issue. Customer segmentation can help you improve retention rate and reduce churn as you can easily identify disengaged users who are at high risk. Dropbox offers to try Dropbox Business. Win back churned customers. Churn cancellation survey example.

SaaS 98
article thumbnail

Financial planning for SaaS startups

The Angel VC

Therefore the key drivers of my imaginary startup are organic growth rate, marketing budget and customer acquisition costs, conversion rate, ARPU and churn rate. If you have a SaaS startup with a higher-touch sales model where revenue growth is largely driven by sales headcount, the plan needs to be modified accordingly.

Startup 189
article thumbnail

The Blueprint To Building An Iron-Clad Business Case For Your Customer Success Scale Strategy

Valuize Consulting

Answer the following questions for your uncovered customer cohorts: What does churn and contraction look like for our uncovered segments/products/regions? Can we definitively link these churn and contraction reasons to the lack of coverage in these areas? What are the main reasons for the lost ARR in these areas?

Scale 52
article thumbnail

How to Improve Customer Retention—Even During a Pandemic

Totango

Renewal, like churn, is the result of the ongoing customer experience, but you can position the retention strategy around a promise of continued success and a logical next step in your relationship. Listening to your customers and being able to iterate and pivot quickly is the key to retaining their business during uncertain times.

article thumbnail

Sales Hacker?s Max Altschuler on selling more with less

Intercom, Inc.

You need to build an efficient sales team…you can’t just throw money or headcount at things. When I started the business, there was enough momentum behind it for it to be interesting. You need to maximize everything you possibly can to beat the competition because you can’t just throw money or headcount at things.