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Dear SaaStr: How Do I Best Prevent Churn?

SaaStr

Dear SaaStr: How Do I Best Prevent Churn? You can’t eliminate churn. It’s a fact of business life in selling a product with recurring revenue and thus recurring sales. You can hide churn (e.g., My top suggestion is: Measure churn carefully, and consistently. And set a big annual goal to drive churn down say 20%.

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5 Predictions about the Future of Customer Success in 2024 with Gainsight CEO Nick Mehta and SaaStr CEO Jason Lemkin

SaaStr

Is it the end of an era for customer success in SaaS? We just wrote up how some of the biggest changes of SaaS are now coming, specifically in Customer Success and Sales. Customer Success Is Vulnerable to Cuts Jason shared that he didn’t realize how vulnerable customer success was to cuts until 2023.

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Customer Success Is A Single Digit Hire

SaaStr

We’ve talked on SaaStr about leaning in on Customer Success as much as possible. We’ve walked through why Second Order Revenue (i.e., the revenue ultimately generated or supported by Customer Success) is the key to growing a SaaS business. To hire in customer success. It’s OK.

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Where Customer Success Reports To Typically, Who Really Owns Renewals, And More from ChurnZero

SaaStr

So ChurnZero put out a great new report surveying 1,037 customer success professionals. of revenue. 34% of CS Teams Have a Veto on Bad-Fit Customers. Churn-and-burn deals help no one except the AE getting a commission. #4. 41% of CS Teams Own Revenue Expansion — More Often Than Sales. I love it!

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The Modern Customer Success Playbook

The evolution of every high-functioning, effective customer success strategy centers around three C’s: connected experiences, an engaging customer journey, and a culture built on customer-centricity. Develop an effective customer health scoring model to mitigate churn and identify opportunities across your customer base.

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At Scale, Customer Success On Average is Paid 5.3% of ARR Managed, Per Gainsight

SaaStr

So we’ve been talking about customer success at SaaStr longer than almost anyone else, going back to our very first posts in 2012, including on Second Order Revenue. Don’t Shortchange Second-Order Revenue. CLTV Isn’t The Whole Story. More in Nick Mehta’s great post here.

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Want Happy Customers? Implement the 5-Visits-Plus-2-Badges Rule. For Your Customer Success Team — And You. (Updated)

SaaStr

If you are a SaaStr reader, you’ll know how passionate I am about Customer Success, since Day 1. For one simple reason: Second Order Revenue. What it all means is that if you do it right, you’ll make 6x or more the revenue from your customers after the sale itself. Word-of-Mouth. Champion Change.

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The Customer Success Onboarding Playbook

A successful customer onboarding process improves efficiency, increases capacity and decreases churn. This playbook features tips from industry leaders and outlines all the steps needed to create a best-in-class onboarding experience.