SaaStr

APRIL 26, 2021

Everyone seemingly became an expert in churn. Your churn rate should be 0.123909% per month. Churn is not a GAAP metric. In fact, Christoph Janz had a great post a ways back noting how even public companies define churn differently. But they excluded churn in the first 60 days. It should be net negative.

Churn 280

Churn Retention Metrics B2B 280

SaaStr

AUGUST 24, 2024

Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments? Because Customer Success — they’re compensated on avoiding churn. image from here ) The post Dear SaaStr: How Do Enterprise SaaS Companies Deal With Late Payments? Yes, in the end, you have to be willing to switch off the platform.

SaaS Payments 291

SaaS Payments Payment Services Payment Solutions Payments 291

SaaStr

AUGUST 16, 2021

We put out a call on Twitter the other day for folks’ best tips on what has really lowered churn for them this year. “1/ Divide your churn into manageable and unmanageable areas 2/ Strip out definable areas of churn reason (e.g. Are you segmenting churn? High usage can still mask churn.

Churn 329

Churn Sales Hiring Headcount Technical Review 329

SaaStr

FEBRUARY 17, 2024

Dear SaaStr: When Is It Too Soon to Target Enterprise Customers in SaaS? It too soon to target enterprise clients when you can’t support their needs 90 days after you close them. Enterprise customers will even sign contracts agreeing to buy so long as you implement a key feature with X number of days.

Enterprise 291

Enterprise SaaS Churn 291

SaaStr

JANUARY 14, 2021

Reducing churn in SaaS, along with increasing new ARR is the backbone to growing your business. In this guide, Andrea Webb, the SVP of Customer Success & Retention at Solarwinds , and Tim Willey, the SVP of Commercial Strategy & Operations at ForgeRock , share their tips for understanding and combating churn. .

Churn 263

Churn Customer Success Payment Features Subscription 263

SaaStr

JUNE 2, 2021

Q: What are some tricks software companies use to manipulate churn metrics? Churn” is a surprisingly imprecise term. Some ways saas companies “manipulate” churn, which may be 100% legitimate in some cases: Not counting churn until after 90 days. If a customer churns in a week, why count them? Companies differ here.

Churn 279

Churn Metrics Software Enterprise 279

SaaStr

MAY 10, 2025

It combines renewals, churn, and upsells. This is especially critical for enterprise accounts, where relationships often determine renewals and expansions. Track metrics like churn, NRR, time-to-value, and customer health scores. The goal is to act before customers even realize theyre unhappy 2 3. Even today. Start Early.

Sales Hiring 236

Sales Hiring Customer Success Scale Retention 236

SaaStr

DECEMBER 19, 2024

Worst case, they still use it and are happy, and churn less. But launching a new, more enterprise / more powerful / better edition? All the best are now multi-product. And most of us regret not having gone there a bit earlier. A related post here. #6. Launch a truly more valuable, new higher-end edition. Be thoughtful.

Sales Hiring 287

Sales Hiring SaaS Venture Capital Healthcare 287

SaaStr

MAY 23, 2024

Should I just mark them as churned? Instead, what you should try to do is renew them, especially in the enterprise. Should I Count Them as Churned? Dear SaaStr: A big customer payed for a year but doesn’t use the product. Many of them never used the product at all in Year 1. appeared first on SaaStr.

Churn 299

Churn Enterprise Branding Business 299

SaaStr

JULY 3, 2024

Accel Partner Philipe Botteri and Synthesia’s co-founder and CEO Victor Riparbelli deep dive into the lessons learned about building an Enterprise-focused Generative AI company and scaling it. AI Adoption in the Enterprise How do you make it happen? They’re willing to pay to try out the product, but they will likely churn.

Enterprise 299

Enterprise AI Search AI Artificial Intelligence 299

SaaStr

JUNE 13, 2022

And I’m going to suggest two that will worry you a lot as you scale — Churn and Sales Cycle — you should track, but not obsess over, until you are well, well past initial traction, that first $1m-$2m ARR. >> Let’s Start with Churn. Absolutely, getting your churn trending downward is important.

Sales Hiring 279

Sales Hiring Scale Churn Metrics 279

User Pilot

NOVEMBER 7, 2024

Top customer success management platforms for mid-market and enterprise companies. Zapscale – from $500/month to $2000/month and customizable enterprise packages. Userpilot – from $250/month to $800/month and customizable enterprise packages. Churn risk and upsell opportunities predictions. G2 rating : 4.8

Customer Success 105

Customer Success Enterprise Software Review Startup 105

SaaStr

DECEMBER 1, 2021

And 85% of all decisions are made in under six months, including 82% of buying decisions at enterprise organizations. You’ll also want to monitor churn risk closely. Look for signs of churn and have a strategy in place to fight the trend. So what’s powering this speedy conversion process? Focus on your NRR > ARR.

Software Review 291

Software Review SMB Enterprise Software 291

Clouded Judgement

NOVEMBER 18, 2024

ServiceTitan discloses that their net retention is “>110%” Gross Margin Adjusted CAC Payback (Previous Q S&M) / (Net New ARR x Gross Margin) x 12.

Benchmarks 302

Benchmarks Payments Payment Services SaaS Payments 302

SaaStr

FEBRUARY 12, 2025

The Evolution of Vertical SaaS The shift from horizontal to vertical SaaS solutions represents a fundamental change in how enterprises buy and implement software. Lower Churn : When software is deeply embedded in industry workflows, switching costs become naturally high.

Construction 255

Construction Scale SaaS Travel 255

Intercom, Inc.

JULY 27, 2022

The scale of enterprise businesses makes them inherently complex – they rely on a suite of tools tailored for specific workflows. This is the fourth post in a content series exploring Intercom’s investment in supporting enterprises. This is the fourth in a content series diving into Intercom’s investments in supporting enterprises.

Enterprise 205

Enterprise Headcount Engineering Cloud 205

SaaStr

NOVEMBER 21, 2020

At least 100% net negative churn (i.e., upsell/account growth + renewals – churn) for very small businesses. 130%+ in the enterprise, and for top B2D products. Surverymonkey — fairly SMB, but going more enterprise: 100%. Zendesk — 116%, mix of SMB and enterprise. Zendesk — 116%, mix of SMB and enterprise.

Retention 350

Retention SMB SaaS Enterprise 350

SaaStr

MARCH 20, 2023

Case shares the playbook for the “messy middle” to prevent the very predictable problems you run into in the middle ground of the mid-market, that space between SMB and enterprise. They’re usually more stable than an SMB profile, yet they can move much faster than an enterprise. The enterprise has a more defined process.

Scale 243

Scale Enterprise Scaling SMB 243

SaaStr

APRIL 4, 2025

Atlog: A knowledge repository that intuitively organizes and versions your data packets, drives, and documents in one place Calltree: Enterprise-grade AI support reps for call centers Calltree makes enterprise-grade AI support reps for call centers. 230+ enterprise customers including three Fortune 50 companies.

AI Search 180

AI Search AI Startup Scale 180

SaaStr

AUGUST 15, 2020

Recently I was catching up with a good friend who used to be CEO of an enterprise-y SaaS social networking company — and the usage and engagement numbers of his business were just awful. The reason is as follows: Year 1 – the enterprise buys, but often doesn’t even fully deploy until month 6-9, or sometimes even longer.

AWS 338

AWS Churn Enterprise Engagement 338

SaaStr

JANUARY 2, 2021

And then 140% as the deals get more enterprise. While Asana isn’t going super -enterprise, its larger accounts are fueling the most growth, growing twice as fast as average. A few other smaller notes: Churn has returned to pre-Covid levels. For most of us in tech, it’s time to stop blaming Covid for elevated churn.

SMB 363

SMB Enterprise Cloud Churn 363

SaaStr

DECEMBER 13, 2021

Linux is the #1 internet client, makes up 100% of the supercomputer market, and is second to Windows when it comes to enterprise software platforms. The developers you engage with often become your first adopters, who then become product evangelists—and they’ll help you scale and solidify trust within enterprises, too.

Enterprise 246

Enterprise AI SaaS AWS 246

SaaStr

MARCH 23, 2020

It can really tough to think through the short-term pressures of churn. SMBs are hurting the most, and the churn will be highest there. Enterprises are churning less, but slowing new purchases way down. You’ll be surprised how many are not just rooting for you, but will do their darndest not to churn.

Churn 354

Churn Customer Support Enterprise Management 354

SaaStr

MAY 1, 2024

And the enterprise business, while starting to taking off, couldn’t overcome the gravity from so many small customers that didn’t need quite as much Zoom as they did during lockdown. Fast forward to today it’s a different, more enterprise Zoom. Still, they’ve brought churn down from 3.6% For now at least.

SMB 305

SMB Scale Banking Enterprise 305

SaaStr

JUNE 2, 2022

Two things though did get hit harder — SMB Churn and Upsell s. Enterprise customers renewed, but they didn’t buy as many additional seats for a while. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. So our gross SMB churn spiked to a crazy high of 5.5%

SMB 361

SMB SaaS Churn Enterprise 361

SaaStr

AUGUST 5, 2021

If you invest in building a vibrant community to back up the sales, you’ll experience a lot of churn. . The post SaaStr Podcast 467 (and Video): Bottom Up vs. Top Down Selling in the Enterprise with ThoughtSpot appeared first on SaaStr. To work with these, you must understand that they’re very different than, say a cascade.

Scale 265

Scale Enterprise Finance Travel 265

SaaStr

APRIL 21, 2021

Even with relatively high churn for a public company (since Wix is self-service), it’s first $1B of ARR will grow to $9.2B Let’s figure out the Total Revenue Generated by {One Single Average} SaaS Customer Over its Lifetime: Ok, Sales closes its average Enterprise Customer A for $10,000 a year from a lead generated by Marketing.

Revenue 351

Revenue Enterprise Customer Success Churn 351

SaaStr

MARCH 9, 2025

But here’s the thing – most enterprise AI initiatives are failing because they’re not becoming part of users’ daily workflows and habits. The Cold Start Problem with AI in SaaS We’re all trying to figure out AI. That’s what Calendly’s leadership team discovered as they embarked on their AI journey.

AI 208

AI Scale Education User Experience 208

SaaStr

MARCH 24, 2025

Some fun facts: 10+ years of SaaStr conference attendance Partner at Point Nine Capital, a leading early-stage VC firm Geographic reach: Actively investing across Europe, US, and Australia Notable portfolio: Zendesk, Algolia, Contentful, Loom (and many more) Known for his “five ways to build a $100M business” framework The 5 Key Things (..)

Data 147

Data Acquisition AI Finance 147

SaaStr

JANUARY 5, 2021

If you have mid-market customers but not many in the enterprise or low-end, focus there even more this year. Well, enterprise customers are happy to pay for them. You can pack another 20-30% of revenue onto any enterprise deal if you do it right here. Add a More Enterprise Edition. Your churn may be low.

Sales Hiring 334

Sales Hiring SaaS Outbound Sales Team Customer Success 334

SaaStr

OCTOBER 29, 2020

Zendesk’s churn is still a bit higher than pre-Covid, but is almost back to pre-Covid levels. So if you sell to SMBs, or a mix of SMBs and enterprise like Zendesk does (with 160,000 total customers), well … enough with the excuses on churn. You don’t always go “Even More Enterprise” over time.

SMB 298

SMB Enterprise Churn Retention 298

SaaStr

MAY 15, 2024

Lesson #1: Maximize the Blurred Lines Between Consumer, Prosumer, and Enterprise There are a lot of differences between consumer and B2B audiences, as you can see in this chart, but the lines are blurring more and more. B2B is finding more consumers and prosumers paying, and B2C is finding Enterprise and business use cases.

Payment Features 307

Payment Features Subscription B2B Mobile 307

SaaStr

DECEMBER 27, 2020

Devops has gone very enterprise quickly, and so has New Relic. New Relic’s net negative churn / net dollar retention has dropped to 98% in the last quarter, despite a record 77% of revenue being from the enterprise. Do whatever you can to drive up NRR / net negative churn. This is a big take-away.

Scale 342

Scale Outsourced Development SMB Cloud 342

SaaStr

MAY 11, 2021

Our Churn is Basically Zero in the Enterprise. Compare Freemium churn rates of 2-3% a month, to Enterprise SaaS net churn (including upsell / upgrades) that is often less than zero … man it sounds like those Enterprise customers don’t go anywhere. We’re doing great because No One Leaves.

B2C 280

B2C Churn Enterprise Revenue 280

SaaStr

AUGUST 29, 2022

After all, there are far from SMB customers than enterprise ones. But SMB SaaS has a lot of challenges, too: Churn is much higher. While many are going more and more enterprise at scale (an important note), they still have large SMB customer sets. Enterprise. A lot of Enterprise. They’re very enterprise.

SaaS Payments 347

SaaS Payments Scale SMB PayPal 347

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. 5 Interesting Learnings: #1 Sales & Marketing Spend Still Tiny at 25%, But Up From 20% As Zoom Goes More Enterprise. It was probably too much.

SMB 340

SMB Enterprise Engineering Scale 340

SaaStr

DECEMBER 2, 2020

” Act more enterprise. Prospects will pay more for the more “enterprise” solution. Decrease churn. Less churn = more revenue … and many other benefits. Measure churn. In the end, decreasing churn by $X a year is the same as selling $X a year more product. Write the collateral.

Scale 322

Scale Sales Hiring Sales B2C 322