SaaStr

NOVEMBER 27, 2021

At $2m in ARR, budget $200k in headcount for the CSM positions + support. The largest of enterprise customers should renew at a 95%+ rate for most SaaS apps. Second, measure Client Success on “net churn”, or total revenue from the customers under management by Client Success. At $4m, $400k, and so on. Measure both.

Sales Hiring 245

Sales Hiring Customer Success Scale Customer Lifetime Value 245

SaaStr

JULY 24, 2023

Folks pulled usage down as much as they could to save money, although logo churn remained low. Many people complain that there’s no budget in Enterprise and that it’s impossible to close bigger deals. Enterprise Customers Are 75% Of Revenue. MongoDB has become pretty Enterprise, and that’s common for people north of $1B ARR.

Revenue 188

Revenue Scale Sales Hiring Cloud 188

The Angel VC

MARCH 23, 2016

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.

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

SaaStr

NOVEMBER 27, 2021

At $2m in ARR, budget $200k in headcount for the CSM positions + support. The largest of enterprise customers should renew at a 95%+ rate for most SaaS apps. Second, measure Client Success on “net churn”, or total revenue from the customers under management by Client Success. At $4m, $400k, and so on. Measure both.

Sales Hiring 189

Sales Hiring Customer Success Scale Customer Lifetime Value 189

SaaStr

JANUARY 12, 2024

Now, in 2024, we’re in the age of efficiencies, and we’re rethinking whether we should put more people on it or tolerate more churn and issues because we want to be cash flow positive. The ways to drive Enterprise value, one of them being M&A. The world has changed. Some other key learnings included: The power of the SaaS model.

Sales Hiring 234

Sales Hiring Customer Success Scale AI 234

Totango

APRIL 6, 2023

While CS is poised to be in the driver’s seat for retention and expansion, we believe that everyone across the enterprise plays a role in customer success. Our latest platform enhancements and solutions help you scale without needing to add headcount, and make CS a company-wide initiative that drives predictable revenue growth.

Innovation 86

Innovation Scale Revenue Technical Review 86

SaaStr

OCTOBER 17, 2023

When we look at publicly traded companies, there is a direct correlation between NRR and Enterprise value. Headcount maybe goes from 2 or 4 to 10. They’re fully saturated unless customers churn. This is generally where churn starts to pick up because competitors are selling against you. Everything!

Scale 159

Scale Sales Hiring Customer Success Scaling 159

SaaStr

OCTOBER 20, 2020

Not if you are selling into the enterprise. A mediocre CSM might say retain 100% of your mid-market revenue on a net-of-churn basis. No headcount limits. Every Great Engineer is Accretive at $2m in ARR. In Just One Full Release Cycl e. You think engineers are cost centers, at least from a financial model perspective?

Sales Hiring 291

Sales Hiring Headcount Engineering Banking 291

SaaStr

MARCH 7, 2023

A Look Back At 2022 Performance ICONIQ Growth leverages quarterly operating and financial data from 92 enterprise SaaS companies. Many of them said headcount management and spend were common levers they pulled, given the immediate and significant impact they have on spend. What are companies doing today to scale efficiently?

Outsourcing Services 159

Outsourcing Services Scaling Venture Capital Forecasting 159

OPEXEngine

DECEMBER 13, 2022

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.” SaaSco’s sales have slowed in the second half of 2022 selling to mid-sized enterprises. Establishing and analyzing cohorts.

Benchmarks 52

Benchmarks Scale Headcount Software Review 52

SaaStr

JUNE 13, 2020

And they have five times the headcount and have raised $25 million. Net Negative Churn is an awesome force. You may go more enterprise. That the operational part would get harder before it got easier … but it would get easier once he doubled or so, when he’d finally have some redundancy and fat on the team and the model.

Sales Hiring 279

Sales Hiring Scale Headcount SaaS 279

Kellblog

JUNE 17, 2023

Executive Summary: Sales KPIs (Slide 5) Here we can see key metrics, cut by size, and grouped into five areas: growth & profitability, sales efficiency, retention & churn, GTM strategy, and sales productivity. Annual revenue churn (rate). I’ve never heard it put exactly this way, but this is some churn rate.

Scale 102

Scale Sales Benchmarks Metrics 102

Kellblog

NOVEMBER 23, 2022

Churn ARR is the sum of ARR lost due to shrinking customers (aka, downsell) and lost customers. Ending ARR is starting ARR + new ARR – churn ARR. It’s + churn ARR if you assign a negative sign to churn, which I usually do.) YoY growth in churn ARR. Churn rate (ATR-based) = churn ARR/available-to-renew ARR.

Technical Review 116

Technical Review Software Review Forecasting Churn 116

OpenView Labs

FEBRUARY 3, 2022

Simpler segmentation approach : By bucking the good, better, best seat-based pricing model, a single price point can be used to satisfy cost-conscious SMB customers as well as mid-market/enterprise businesses. Fast growers retain and expand new customers, resulting in net negative churn. high usage, growing usage month-to-month).

Headcount 73

Headcount SaaS Compensation Acquisition 73

Totango

MAY 7, 2024

If Sales co-owns NRR, they are disincentivized to oversell to customers who will be more likely to churn, thus making CS’s job far easier. The post Expansion is a Team Sport: Strategies for Aligning CS and Sales in 2024 appeared first on Best Customer Success Blog: Articles for Enterprise Growth.

Strategy 97

Strategy Sales Customer Lifetime Value Retention 97

ChurnZero

DECEMBER 27, 2022

Is your CS team experiencing panic churn? Is your headcount staying flat next year? Success Centers are part of ChurnZero’s Enterprise and Professional Editions. Success Insights is part of ChurnZero’s Enterprise Edition. Learn how to emphasize the financial value of your CS team by choosing the right metrics.

Leadership 90

Leadership Benchmarks Headcount Machine Learning 90

Totango

JULY 5, 2022

Customer health scores can help you assess whether your customers are seeing value in your product, determine churn risk and spot opportunities. When this happens, you need to be able to salvage the relationship as quickly as possible, so you can prevent churn before it strikes. Low Net Promoter Score (NPS). Low usage rates.

Customer Success 98

Customer Success Scale Headcount Churn 98

ChurnZero

APRIL 29, 2022

But realistically with you having a headcount, there’s no question that pretty much one churned customer at most enterprise organizations is going to pay for that. It was to get this person in seat to focus on how we churn one less customer because that’s going to turn into a lot more than just one less customer.

Customer Success 98

Customer Success Headcount Compensation Churn 98

Intercom, Inc.

AUGUST 26, 2020

With more than half (52%) of companies planning to reduce the size of their team as a result of the current economic downturn, support leaders are turning to technology, not headcount, to scale their efforts. For enterprises that have more than 3,000 employees, they’re 50% more likely to want to make that transition.

Trends 233

Trends Scale Headcount Technology 233

ChurnZero

NOVEMBER 29, 2022

There were also a number of customers who turned us into shelfware or essentially churned. Like many early-stage Customer Success teams, I was working with limited resources and did not have any headcount to hire new talent. Sometimes we’d get lucky, and the customer would come to us to ask for more products or services.

Customer Success 98

Customer Success Sales Recruiting Technical Review Compensation 98

Totango

APRIL 23, 2019

The rate at which your customers extend their relationship with you determines how fast and how far your enterprise can grow. Customer expectations are higher than ever, and if you can’t deliver lifetime customer value, then a relationship you’ve worked hard to build may just end in churn. Understanding Renewal and Churn.

Headcount 70

Headcount Churn Subscription Payment Features 70

OpenView Labs

FEBRUARY 10, 2020

Sales now accounts for about 7% of the company’s headcount–a similar share of their workforce as marketing or product management. The company proactively layers in sales (Atlassian calls them ‘enterprise advocates’) depending on a prospect’s level of complexity or their potential value to Atlassian. Low touch does not mean no touch.

Sales Hiring 57

Sales Hiring Scale Headcount Sales 57

Intercom, Inc.

NOVEMBER 14, 2018

. “The point of tracking sales KPIs is to drive action for our team, not just to display them on a sales dashboard” That’s why I spend much of my time examining underlying KPIs like lead flow, pipeline creation, churn, expansion and more. Churn dollars. Gross customer churn. New logos acquired. New logo revenue.

Sales Hiring 188

Sales Hiring Metrics Revenue Sales 188

Totango

APRIL 14, 2020

The digital transformation of business has finally given enterprises the power to deliver on the potential of B2B customer segmentation. A single customer success team member within your enterprise can remain in close contact with thousands of customers, and keep their engagements relevant and beneficial to the customer.

B2B 71

B2B Scale Marketplace as a Service Sales Hiring 71

Hitenism

JANUARY 16, 2017

In 2014, Mixpanel’s Series B pitch deck spelled out the company’s expansion plans over the next two years: 3x sales headcount and rapidly race towards distribution. Double headcount every 6-9 months. Business solutions (or enterprise plan). Enterprise is a different animal.

Scale 147

Scale Venture Capital SaaS Headcount 147

Intercom, Inc.

JULY 21, 2022

All you have to do is enter your email to get started'” As Slack expands into a larger enterprise product, you have to start appealing to groups of people and types of roles and industries that aren’t in that early adopter group. Slack has obviously raised a lot of money, so we weren’t hampered by budgets as long as the ROI was there.

Outsourcing Services 215

Outsourcing Services Sales Hiring CTO Hire Acquisition 215

Intercom, Inc.

NOVEMBER 30, 2021

Juggling outdated, disjointed tools is a recipe for team burnout, customer dissatisfaction, and ultimately, churn. Powered by a modern business messenger , it scales your ability to answer more questions from more customers without increasing headcount, budget, or hours logged. Work for an enterprise or fast-growing company?

Technical Review 249

Technical Review Customer Support Payment Methods Payment Solutions 249

ChurnZero

JANUARY 4, 2024

On the other hand, economic headwinds continue to constrain CS budgets and headcounts. One major result will be that the customer success organization becomes better equipped to be a full participant in the Go-to-Market (GTM) strategies that have taken enterprises by storm.”

Customer Success 52

Customer Success Trends Sales Hiring Artificial Intelligence 52

SaaStr

JUNE 16, 2020

Leveraging survey data from 66+ enterprise SaaS companies, Matt Garratt, Managing Partner of Salesforce Ventures shares the landscape of how businesses are shifting their sales & GTM strategies to react to today’s uncertain times. And if you look at churn, so in Q1, starting to see some early signs of churn.

Sales Hiring 155

Sales Hiring Scale SaaS Payments Payment Services 155

The Angel VC

DECEMBER 12, 2018

What makes things tricky is, first, the uncertainty of how your CACs will develop at increasing scale and of how your churn rate will develop over time. If you close a mid-market or enterprise customer today, it usually means that a salesperson, let’s call her Maria, has been working on the deal for 6-12 months.

Sales Recruiting 106

Sales Recruiting SaaS Payments Sales Hiring Scale 106

ChurnZero

NOVEMBER 16, 2018

How to Scale without Scaling Headcount. To ensure you success function scales without scaling your headcount, make sure everyone in the company is bought into the success mindset. Excellent presentation on the customer-powered enterprise. Segmentation – Don’t Just Set it and Forget It. pulseEurope2018. influitive ?

Customer Success 49

Customer Success Scale Headcount Sales Hiring 49

Intercom, Inc.

AUGUST 24, 2021

It may seem like an impossible conundrum, but luckily you don’t need to add headcount just to keep up with an expanding inbox. For many businesses, the process of scaling can also include moving upmarket to attract larger enterprise customers, many of whom will expect personalized, white-glove service as standard.

Scale 129

Scale Customer Support Scaling Headcount 129

Totango

NOVEMBER 5, 2019

If these metrics are negative, you are alerted to potential churn—in time to do something about it. Renewal and churn are not tied exclusively to anniversary dates. One sure-fire sign of a successful enterprise is an expanding headcount. Average time in application. Active Users. License Utilization.

Metrics 64

Metrics Customer Success Customer Lifetime Value Headcount 64

Intercom, Inc.

MAY 13, 2021

Although Linda started her career in sales, she has spent the past twelve years scaling post-sales teams and moving hyper-growth companies like Zendesk, Slack, and now Gong upmarket into the enterprise realm. These evolving demands from enterprise customers bring with them different skillsets customer success managers need to hone.

Scale 177

Scale Customer Success Strategy Sales Hiring 177

Totango

OCTOBER 8, 2020

A growing customer gradually increases their need for your services and resources through expansion , in turn driving your own enterprise development. Maintaining contact in a time when many enterprises are stretched for time and resources requires the comprehensive solution of a customer success platform. Get started for free today.

Retention 63

Retention Headcount Customer Success Engagement 63

Valuize Consulting

MAY 4, 2022

In the vast majority of B2B technology enterprises today, a Customer Success (CS) strategy is firmly in place. Answer the following questions for your uncovered customer cohorts: What does churn and contraction look like for our uncovered segments/products/regions? Rally Your Organization Around A Strong CS Scale Strategy.

Scale 52

Scale Customer Success Scaling Strategy 52

OpenView Labs

OCTOBER 1, 2019

This survey also indicates that Professional Services can lead to more enterprise deals and lower churn. Companies targeting Enterprise customers see 16% of their first year’s ARR from Professional Services — 2018 Private SaaS Company Survey by David Skok. Lower churn. How to use Professional Services. Patrick Cambell.

Customer Success 40

Customer Success Startup SaaS Sales Hiring 40