SaaStr

FEBRUARY 14, 2023

Net Dollar Retention Shows SaaS’s Best Qualities NDR encapsulates SaaS revenues’ best qualities in one metric: the subscription-based model. For SMB-facing companies, over 110% should be your goal. The beauty of SaaS as a business model is its asset-light nature, selling bits, not atoms.

Metrics 225

Metrics Marketing SaaS SMB 225

OPEXEngine

MAY 18, 2021

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. Growth Stage – Scaling the Business, and . Obviously, subscription revenue growth rates are valued differently at different sizes.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OPEXEngine

JUNE 11, 2020

Sometimes companies only include recurring revenues when they talk about bookings or billings, but they also sell Professional Services (and must book and bill them somehow). Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS, Subscription, and On-Premise Software: Don’t Confuse Subscription with SaaS.

SMB 59

SMB SaaS Benchmarks Subscription 59

SaaStr

NOVEMBER 2, 2019

How does Krish think about purely serving the SMB market? How does he think about the mortality rate of SMBs? How does Krish think your customer acquisition and GTM strategy has to change with the movement from SMB to enterprise? What does Krish mean when he says, “In SaaS, you either sell to one of 2 customer profiles”?

Scale 128

Scale SaaS Payments Sales Recruiting Payment Services 128

OPEXEngine

NOVEMBER 17, 2020

Subscription companies have to have a policy about when customers who have not renewed their subscription contract are no longer existing customers, and if they do resubscribe, they are now new customers. For monthly subscriptions, it may be the day after the subscription expiration.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

FastSpring

SEPTEMBER 2, 2020

“It doesn’t take a genius to understand that business model failure comes when CAC (the cost to acquire customers) exceeds LTV (the ability to monetize those customers.)” These methods are fine for short-term forecasting, but for subscription-based companies, the calculation gets a little more complicated.

Scale 135

Scale Payment Methods Payments SaaS Payments 135

OPEXEngine

JUNE 23, 2021

The CAC Payback Period, also known as Months to Recover Customer Acquisition Cost (CAC), measures the number of months of subscription revenue it takes to recover the costs to acquire one customer. This metric is one of the many ways to look at the capital efficiency and profitability of a SaaS business.

Benchmarks 52

Benchmarks Acquisition SMB Subscription 52

SaaSX

FEBRUARY 14, 2021

It may be that they just can’t sign up online because they need to generate a PO or receive an invoice to pay. I am reminded of Hubspot’s free online website grader tool that attracted hundreds of thousands of SMB marketers into their subscriber base before they had an online purchase path.

Scale 59

Scale Payment Features SMB Acquisition 59

Intercom, Inc.

DECEMBER 13, 2018

As Workplace’s global head, Julien Codorniou has been spending the past few years exploring how to make his department align with Facebook’s mission while executing an entirely different business model that relies on companies promoting community within their workforce. Unlocking a new business model.

Scale 151

Scale Marketplace as a Service Mobile Sales Hiring 151

OPEXEngine

FEBRUARY 22, 2022

SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. Some SMM companies may use all four depending upon the business model. Direct Sales. eCommerce Marketplaces.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

Software Platform Consulting

MAY 20, 2019

Upwork has offerings for all sizes of clients from SMB to the enterprise. Upwork has a more complicated business model involving a freemium offering, subscription offerings with differing transaction rates for freelancers and clients. I love when business models collide (see here and here ).

Marketplace as a Service 40

Marketplace as a Service Software Review SMB Web Development 40

FastSpring

JANUARY 27, 2022

We also show you how to personalize your billing practices with advice from our experience working with thousands of SaaS businesses. Note: FastSpring offers advanced subscription management services that support free trials, monthly and annual paid plans, proration, discount management, and more. How Castos upsells subscription tiers.

Merchant Services 118

Merchant Services Payment Services SaaS Payments Payment Solutions 118

ChurnZero

MARCH 18, 2022

If they don’t get 150% NRR, then it actually breaks the business model. If you tell me that we have this awesome land-and-expand model, we go in with a really low price, and then we have a dedicated expansion team that does these upsells, and I say, “Wow, what an amazing story. What’s your NRR?”

Customer Success 98

Customer Success Metrics SaaS Banking 98

Baremetrics

JANUARY 24, 2021

Anyone managing a SaaS or subscription business is aware of customer churn. Transitioning to SaaS On January 1st 2020, we transitioned the company out of a strategic partnership (we were operating the platform under a non SaaS business model!). We were looking to relaunch the user-driven, SaaS side of our businesses.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

ChurnZero

JUNE 11, 2021

A customer health score is a value that indicates the likelihood that a customer will renew their subscription or service with your company. Another example is creating a health score based on tiered implementation: SMB onboarding versus Enterprise onboarding. Your segment and timeframe may differ depending on your business model.

Software Review 96

Software Review Systems Review Scale Underperforming Technical Team 96

Brian Balfour

MARCH 21, 2017

On the Y-Axis we have similarity, representing how similar the data-producing sample group is to your own product, business, and channel. High similarity would mean that the sample group has the same target audience, a similar product, and a similar business model. What is the business model?

Benchmarks 40

Benchmarks Business Model Acquisition Subscription 40

SaaStr

AUGUST 9, 2019

It’s not an SMB where you’re getting volumes of 100 a day. You said there about mid-market and it not having the same velocity of SMBs. I clearly don’t get out enough if I have a couple of questions on mid-market versus SMB, but let’s go for it. A couple of questions on this. So it is pretty interesting.

SaaS Payments 132

SaaS Payments Cloud Technical Review Scale 132

SaaStr

NOVEMBER 16, 2020

Andy MacMillan: I spent five years at Oracle in the Fusion Middleware Group, working in Thomas Kurian’s org and ended up hopping over to Salesforce to learn the SaaS business model and ran a business inside of Salesforce for a while. It was a subscription based model. I had to care that you were successful.

Sales Hiring 209

Sales Hiring Scale Leadership Sales Enablement 209

SaaStr

OCTOBER 29, 2019

This is a mobile solution for SMB’s to send an invoice and get paid. I think it’s such an interesting window into the company’s business model and I bucket companies into one of three buckets. We hired a data scientist and started building models. You’d be shocked how often I hear this.

Payments 101

Payments Pricing Compensation SaaS Payments 101

Casey Accidental

DECEMBER 11, 2023

Besides building a growth model and forecasting your growth from it, which I absolutely recommend you should do, what are the factors that contribute to how quickly you need to be investing in that second product after the first product finds product/market fit? Canva was more of a single player and SMB tool.

Payments 113

Payments Scale Payment Solutions Technical Review 113

Sales Hacker

OCTOBER 15, 2018

We think customer success is the new way to think about sales because we think in new business models, like subscription, SaaS, Cloud, etc., If you’re an enterprise business, if you’re in the 90s, you’re probably reasonably efficient in gross retention. They can leave when they want to.

Customer Success 47

Customer Success Scale Underperforming Technical Team Retention 47

Unbounce

JUNE 16, 2020

especially for SMB SaaS startups. Today, small and medium SaaS businesses are discovering the power of using partners to help sell their products. Depending on your business model and stage of growth, a partner program will likely take on different forms. Tom Tunguz, Venture Capitalist at Redpoint. Check them out.

Outsourcing Services 131

Outsourcing Services Sales Recruiting Scale SaaS 131

Intercom, Inc.

OCTOBER 29, 2019

You can’t find email lists using Job-to-be-Done, but you can find ones for B2C subscription businesses that have a high volume of website traffic. Sales: Be able to route prospects to our self-service flow or the most appropriate team within Sales, e.g. startups, SMB, MME, based on well-defined customer segments.

Business 184

Business B2C Scale Headcount 184

OPEXEngine

SEPTEMBER 10, 2020

Many are experimenting with changing subscription lengths to accommodate new customers and conversely, extending contracts beyond 12 months to lock in enterprise customers. At the same time, some enterprise SaaS companies are working to lengthen subscription terms beyond 12 months where they can lock customers in now.

Payment Services 59

Payment Services SaaS Payments Trends Payment Solutions 59

SaaStr

NOVEMBER 1, 2019

About the episode: Tien Tzuo is the Founder and CEO of Zuora, one of the fastest-growing SaaS companies that has been at the forefront of the rise of subscription business models. They have funding from some of the best in the business including the likes of Benchmark, Sequoia, Redpoint and Marc Benioff, just to name a few.

Technical Review 157

Technical Review Development Team Review Scale Software Review 157

ChurnZero

OCTOBER 12, 2021

With this new model, they covered 100% of clients with proactive outreach, and grew 1:1 coverage by 102%. They also increased client retention among SMB subscriptions by 2%. Solink’s business model relies heavily on expansion within their customers’ business. Renewal/Expansion Hero – Jisr.

Healthcare 98

Healthcare Systems Review Scale Point of Sale 98

Chart Mogul

OCTOBER 9, 2020

Freemium buyers can be largely organized into two categories: Price-sensitive early-stage and SMB users who get started with your product for free, and convert to paying customers as their needs (and businesses) grow. End users from large businesses. Let’s put this in context for a minute.

Scale 83

Scale Churn Metrics Retention 83

Chart Mogul

SEPTEMBER 15, 2023

The SaaS Business Model & Metrics: Understand the Key Drivers for Success by David Skok, Matrix Partners SaaS Metrics — 201 A slightly deeper dive into SaaS industry metrics. Software subscriptions are the life of every SaaS business and must be accounted for properly in your general ledger.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

OPEXEngine

MAY 12, 2020

The majority of SaaS companies, including many that are transitioning from on-prem to cloud models, still put new sales at the center of their business model. But as investor Gavin Baker astutely observed at the beginning of the crisis, “At the end of the day, there is no such thing as truly recurring revenue.

Technical Review 59

Technical Review SaaS Software Review Sales Hiring 59

SaaStr

NOVEMBER 22, 2019

Because that is a very clear measure of a subscription model health. Travis Bryant: Because in SaaS, the value doesn’t come from the new business deal. So that’s changed of course, clearly with a subscription business model. Harry Stebbings: SMB to enterprise or vice versa.

Underperforming Technical Team 159

Underperforming Technical Team SaaS Payments Payment Services Technical Advisors 159

Chart Mogul

OCTOBER 9, 2020

Freemium buyers can be largely organized into two categories: Price-sensitive early-stage and SMB users who get started with your product for free, and convert to paying customers as their needs (and businesses) grow. End users from large businesses. Let’s put this in context for a minute.

Scale 52

Scale Churn Metrics Retention 52

ChurnZero

OCTOBER 12, 2021

With this new model, they covered 100% of clients with proactive outreach, and grew 1:1 coverage by 102%. They also increased client retention among SMB subscriptions by 2%. Solink’s business model relies heavily on expansion within their customers’ business.

Healthcare 52

Healthcare Systems Review Scale Point of Sale 52

Baremetrics

NOVEMBER 9, 2021

Churn Rate Churn rate basically defines the long-term trajectory of a business. Low churn allows recurring revenue to grow, improves growth rate, and reduces the risk of long-term value loss. SMB SaaS companies tend to have higher churn rates due to their lower demand and less sophisticated needs.

SaaS Payments 105

SaaS Payments Technical Review Development Team Review Software Review 105

Aaron Beashel

MARCH 9, 2018

Their marketing team may be using Account Based Marketing tactics to generate some leads, but majority of business is won by the Sales team prospecting, outreaching and closing deals and marketing plays more of a supporting function. Revenue Model – A description of how the company generates revenue. Business Resources.

Scale 192

Scale SaaS Payments B2B Strategy 192