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Dear SaaStr: We Have More Than 20% Churn Our First Month. This is pretty common in the prosumer space and especially in mobile subscription apps. And even where you don’t see 20% churn the first month with SMBs, it often lurks, because most B2B apps in SaaS don’t even get 80% of their SMBs activation the first month.
annualized subscription dollar retention rate. subscription dollar retention, but this was still problematic. Their transition to an AI-first strategy began paying dividends with embedded AI driving higher engagement across all hubs. 70% NRR — far below the 100%+ target for healthy SaaS companies.
If you’re looking for a payment services provider and merchant of record to help you grow your subscription business, we can help. FastSpring provides an all-in-one payment platform for SaaS, software, video games, and digital products businesses, including VAT and sales tax management, payment localization, and consumer support.
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%.
Operating a business entails a number of processes like managing products and payments, invoices, customer engagement, revenue, unpaid invoices and much more. That is why most modern SaaS and subscription-based businesses have transitioned to using a good billing software, reducing their workload by a great deal.
Some of the pitfalls that come with unplanned billing migration are faulty revenue reporting, data duplication, and customer churn. Getting onboard a robust billing system means benefiting from advanced features like automated recurring billing, customized invoicing, and revenue recognition.
Designed for users of all skill levels, FigJam makes everything from personal projects to solo ideation to team meetings more engaging and fun. ” Figma Slides : “Figma Slides helps teams collaboratively make compelling, engaging presentations that drive and maintain alignment.
By Kegham Khrigian The New Standard for Subscription Renewals: Intelligent, Automated, and Scalable For subscription businesses, renewals are the foundation of predictable revenue and long-term growth. Yet, many companies still rely on outdated, manual processes that create inefficiencies, revenue leakage, and higher churn rates.
What’s your biggest challenge with customer churn right now? Understanding the root causes of customer churn is the first step to reducing it. Identifying why users are leaving Proactively engaging at-risk users Measuring churn accurately How do you currently track customer health and predict potential churn?
By Inga Broerman How Industry Consolidation is Reshaping Subscription Billing The subscription economy is on a path of rapid growth and transformation, projected to reach a $3 trillion valuation in 2024. Billing integration simplifies the implementation of these models, ensuring accurate tracking and invoicing.
By Inga Broerman How High-Performing Subscription Businesses Maximize NRR For subscription-based businesses, Net Revenue Retention (NRR) is the ultimate measure of growth and sustainability. High-performing subscription businesses use NRR as a growth engine , ensuring that renewals and expansions outpace any losses from churn.
Unlike traditional businesses, most SaaS businesses operate the subscription pricing model. They include metrics like the Net Promoter Score , Customer Effort Score , Customer Churn/Retention Rates , etc. Some engagement techniques include: Loyalty programs : This can encourage engagement and repeat purchases.
How to design surveys for maximum engagement? Key takeaways from this example In-app placement improves engagement: The feedback widget allows users to submit ideas at the most relevant momentwhen users are actively engaging with the tool. Survey examples: Asana churn survey. What makes a customer feedback survey great?
Customer expansion drives recurring revenue and long-term growth. By increasing the value provided to existing customers through different expansion tactics, companies can reduce churn and enhance customer lifetime value. Product usage patterns and engagement levels (those who use the product more than others).
Heres why: Revenue in Consumption Models Comes from Usage, Not Signatures : Unlike traditional subscription SaaS, where you lock in revenue with a signed contract, in a consumption-based model, revenue only materializes when the customer starts using the product. The customer churns within the first 6 months. 10k/month in usage).
ARR (annual recurring revenue) is a hallmark SaaS metric rooted in predictability. Customers sign multi-year contracts, churn and expansion are stable, and revenue can be confidently modeled. However, many companies misuse ARR and count forms of non-recurring revenue as ARR, confusing the metric. ERR often lives on the edges.
SaaS operates on a subscription model, making it easier to manage cash flow and reduce upfront expenses. SaaS companies that invest in onboarding, customer education, and proactive support tend to see higher engagement and lower churn. Lower upfront costs Say goodbye to expensive licenses and infrastructure costs.
Sephoras Virtual Artist and Amazons product recommender personalize shopping for each user, boosting engagement and sales. Typical business applications include: Back-Office Automation: AP/AR processing, invoicing, and HR onboarding can be fully automated. Executives also leverage generative AI for idea generation and reporting.
Here, customers usually find your brand through marketing channels and then engage with it through tools like interactive self-guided demos, free trials, or freemium versions of your product. On the flip side, consider docking reps when they onboard a customer who contracts or churns shortly after becoming a paid subscriber.
We use behavioral analytics to map out the customer journey so that we can tailor onboarding flows, marketing efforts, and engagement campaigns to each segment. For example, we can promote advanced modules to power users who demonstrate high engagement. We want to: Understand our users’ specific needs and desires.
But in a subscription economy, the reality is that its far more than that. It captures the total impact of customer expansion, contraction, and churn. Use customer health scores, product engagement data, and CS insights to qualify expansion opportunities – the same way you would a net-new deal.
To win the battle against churn, CS teams need to leverage the right strategies and specialized tools. By combining a customer success platform (CSP) with a powerful CRM tool, teams can minimize churn, turning satisfied customers into loyal advocates and building a more engaged, long-term customer base.
By BluLogix Team The Future of Renewal Management: How Automation is Changing the Game Introduction Renewals should be a seamless, predictable part of any subscription or service-based business. This reactive approach leads to revenue leakage, customer churn, and missed upsell opportunities. The good news? The problem?
They are deal-centric, perfect for managing a sales pipeline, but are not built to handle a CSMs workflow or post-sale engagement. Once a deal is closed, a CRM often loses visibility into the customers journey, making it difficult to track product adoption, engagement, and value realization over time.
We have to oversee how we’re engaging customers , how we’re structuring emails in our onboarding sequence, and what user experience we’re providing once they’re on the app. Check-in emails: After the initial welcome email, a check-in email is typically sent to keep users engaged and improve customer satisfaction.
I mean what happens after the download: how users navigate, what features they engage with, and where they drop off. With app tracking, you can see that drop-off and know exactly where and why user engagement decreased. Track mobile app engagement metrics with Userpilot. Why track in-app user behavior? How to track it?
Now, you can launch an automation when a subscription is set to be canceled. These updates highlight what makes ChartMogul so powerfulnot just for Subscription Analytics, but for as a CRM workflow tool. Automation #1: Create a task when churn is scheduled Imagine its Monday morning.
For more advanced needs like multi-step nurturing or complex logic, Salesforce often relies on integrating its Marketing Cloud or Pardot (now Marketing Cloud Account Engagement) for marketing automation. Salesforces AppExchange apps can also carry their own subscription fees. Need advanced customer support tools? Want AI insights?
ICP (Ideal Customer Profile) A huge part of why customers churn in PLG-driven or other motion-driven companies is the misalignment around what an ICP (Ideal Customer Profile) is. With this system, everyone can access subscription revenue insights and understand how their actions impact the company’s bottom line. The foundations.
As product managers and onboarding specialists, you’re juggling a million priorities: feature adoption, activation milestones, reducing churn… And crafting the perfect email sequence that guides users to success? First, think about where your users are most engaged. That’s why re-engagement emails are so crucial.
Amplitude: Product intelligence and event tracking software , offering customer engagement and retention insights. FullSession Capture all user interactions, observe how users engage with your website, and improve its interface, usability, experience, and performance with FullSession, an advanced user behavior analytics platform.
Committed to being the platform and partner for customer success, ChurnZero’s software delivers a powerful combination of market-leading customer success and digital engagement tools, made even more impactful by Customer Success AI™. And there is no world where the function does not exist at B2B subscription companies.
An effective sequence can re-engage users and help them hit the first milestone faster. In the long run, it will encourage product adoption, boost customer retention, and reduce churn across the entire customer lifecycle. These emails can also work as part of a re-engagement strategy. Others never make it to activation.
By BluLogix Team The Rise of the Subscription Economy for IT Service Providers Introduction The subscription economy is reshaping how businesses across all industries operate , and IT Service Providers (ITSPs) are no exception. Increased Customer Loyalty Subscription-based services also help build stronger customer relationships.
Marketing can analyze which features attract the most users or generate the highest engagement. Subscribers who will stick around, renew their subscriptions, and expand their usage over time are the most valuable customers in SaaS. This insight is useful for all GTM models, including both PLG, sales-led growth (SLG).
It helps you manage your online presence so you can post consistently and on a schedule you choose — which can help improve engagement. Optimize your posting times for maximum engagement. Track interactions, from website visits to email engagement, for a full picture of lead behavior.
Over half our team is focused on product development, ensuring we stay well ahead in Subscription Analytics while expanding our CRM offering. Product release highlights include: ChartMogul Benchmarks Our revamped approach to data cleaning When should you recognize churn?
Easier to charge premium prices Reduces sales friction Drives loyalty and reduces churn Acts as a moat; reputation can’t easily be copied A strong brand creates trust, builds brand authority and attracts loyal customers and brand ambassadors. Every tweet, every email, every support ticket shapes perception. It was a deliberate choice.
👋) is a social media management platform with an AI Assistant that helps you create more engaging content in less time. Our data shows that posts created with AI Assistant get 22% higher engagement than non-AI-assisted posts. "It's been the best subscription management platform we've found so far."
All those price-sensitive customers may not be willing to stay once prices go up—so it’ll take proactive steps to minimize churn and keep as many of your initial users as you can. Using customer retention cohort analysis, you can track the percentage or number of customers from a specific group who still have active subscriptions over time.
And users who don’t reach value within the first 24 hours are 3x more likely to churn. Most users who churn dont complete key feature adoption, so tracking these progressions is crucial. Engagement metrics measure the depth and frequency of users interactions with your product.
And since customer lifetime value and NRR are integral to broader revenue goals, it is time for CS to embrace the predictive, in which strong forecasting begets lower churn. Best to home in on the top scenarios for your teams retention goals, as well as keep a handy list of red flags to signal churn risk. Non-recurring revenue.
By Inga Broerman The Renewal Blind Spot: Where Subscription Businesses Lose the Most Revenue Renewals should be a source of predictable, recurring revenue yet for many subscription businesses, they are a pain point filled with inefficiencies, missed opportunities, and revenue leakage. Delayed payments and unpredictable revenue.
By BluLogix Team Why Consumption-Based Pricing Drives Higher Customer Retention Introduction One of the biggest challenges in subscription-based businesses is churn. Many customers cancel subscriptions because they dont see the value. Many customers cancel subscriptions because they dont see the value.
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