ChurnZero

NOVEMBER 11, 2022

Overall, the industry’s top five measurements of success are NRR, gross revenue retention (GRR), churn rate, logo retention rate and expansion revenue—while “softer” metrics like NPS appear only further down the list. Why NRR (net revenue retention) is the SaaS metric to rule them all. However, 76.5% of companies.

Leadership 98

Leadership Trends Customer Success Investment 98

Tom Tunguz

JUNE 18, 2019

This section covers employee satisfaction, headcount, and recruiting metrics. Customer Success reviews the net dollar and logo retention, plus churns and expansions. The template is broken into six sections: People, Bookings & Revenue, Cash, Sales, Marketing, Customer Success.

Metrics 250

Metrics Sales Recruiting Startup SaaS 250

SaaStr

NOVEMBER 27, 2021

At $2m in ARR, budget $200k in headcount for the CSM positions + support. Second, measure Client Success on “net churn”, or total revenue from the customers under management by Client Success. A typical target is 110-120% net annual revenue growth rate from your base, including both churn and upsells. Measure both.

Sales Hiring 186

Sales Hiring Customer Success Scale Customer Lifetime Value 186

Totango

APRIL 6, 2023

To survive this tough “do more with less” climate, companies are turning to their customer success (CS) teams to ramp up their customer retention and expansion efforts. 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.

Innovation 85

Innovation Scale Revenue Technical Review 85

Intercom, Inc.

AUGUST 16, 2022

Support teams are facing a critical juncture: business costs and customer expectations continue to grow while resources like headcount and budget are decreasing. In turn, you’ll increase efficiency without increasing your headcount. So, how can it transform your offering into an experience that drives loyalty?

Headcount 118

Headcount Scale Sales Hiring Customer Lifetime Value 118

SaaSX

FEBRUARY 5, 2020

This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s). these figures are going to be WRONG because you haven’t properly accounted for your headcount costs in Sales & Marketing.

Finance 118

Finance Sales Hiring Headcount Scale 118

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. 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. When one person churns, it counts for more.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

SaaStr

MARCH 7, 2023

Many of them said headcount management and spend were common levers they pulled, given the immediate and significant impact they have on spend. Companies are giving price breaks this year to reduce churn and increase retention, with the caveat that it might go up next year. What are companies doing today to scale efficiently?

Outsourcing Services 164

Outsourcing Services Scaling Venture Capital Forecasting 164

ChurnZero

JULY 14, 2021

And the good news is this metric is something that Customer Success teams can directly influence during the customer’s journey as they play a critical role in solving customer pain points and delivering value and business outcomes to increase customer loyalty and ultimately reduce churn. How Do You Calculate Customer Lifetime Value?

Customer Lifetime Value 98

Customer Lifetime Value Scale Headcount Churn 98

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 118

Technical Review Software Review Forecasting Churn 118

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.” Companies with an equivalent commercial operation- sales headcount, marketing spend, and customer acquisition cost (CAC).

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. Even if the competition is everywhere, if your net revenue retention is 120%-130% or higher, that means your existing customer base is still happy to buy more from you. More on that here ). They’re all over us.”.

Sales Hiring 277

Sales Hiring Scale Headcount SaaS 277

Sixteen Ventures

APRIL 26, 2023

NRR Defined Net Revenue Retention – NRR – is the percentage of revenue retained from existing customers in a defined time period, including Expansion, Contraction, and Churn. Also called Net Dollar Retention or NDR. When a CS org is focused primarily on customer retention (vs.

Headcount 43

Headcount Churn Retention Metrics 43

Intercom, Inc.

AUGUST 26, 2020

With a focus on ROI, nearly a third (30%) plan to measure their team’s impact on customer retention. 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.

Trends 233

Trends Scale Headcount Technology 233

Intercom, Inc.

JULY 26, 2022

Use automation to make your headcount count for more. Retention is an investment that keeps paying off. Research by Frederick Reichheld, creator of the Net Promoter Score, has shown that increasing customer retention rates by just 5% could increase profits by 25-95%. Time savings: ????. Cost savings: ????. Time savings: ?????.

Payment Methods 118

Payment Methods Payment Solutions Payments Payment Services 118

Intercom, Inc.

DECEMBER 8, 2020

It can also guide your hiring process if increasing headcount is required to guarantee 24/7 coverage for customers. Maintaining and exceeding customer expectations allows you to boost retention and increase customer advocacy. Customer satisfaction. Your Customer Satisfaction Score (CSAT) is a critical metric for success.

Customer Support 211

Customer Support Metrics Technical Review Scale 211

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 97

Customer Success Scale Headcount Churn 97

OPEXEngine

NOVEMBER 23, 2020

This INCLUDES headcount-related expenses. If you are utilizing Gusto or a similar payroll tool, your headcount expenses are likely coming into your P&L as one (or maybe two) line item(s). these figures are going to be WRONG because you haven’t properly accounted for your headcount costs in Sales & Marketing.

Finance 52

Finance Sales Hiring Headcount Scale 52

Intercom, Inc.

MARCH 12, 2019

” In our case, a resounding “yes” required seeing a positive impact on customer expansion and one big enough to justify the fully-loaded cost for the additional headcount. We tracked customer churn, contraction, expansion and overall health, and correlated the metrics to our relationship managers’ activities.

Sales Hiring 171

Sales Hiring Sales Recruiting Underperforming Technical Team Scale 171

CustomerSuccessBox

JUNE 28, 2021

Acquisition-driven growth is dead, retention-driven growth is the future. The Acquisition driven SaaS growth is dead and this era is all about retention-led growth. Whether you are a B2B SaaS or a B2C SaaS, the business’s growth and survival will be dependent on customer retention. Customer Retention.

Customer Success 52

Customer Success Trends Technical Review Headcount 52

User Pilot

MAY 11, 2022

You can also learn why different segments churn more often and fix the issue. It helps you receive valuable insights, and detect common behavioral patterns that you can use to improve your product retention rate. H3 Improve customer retention rate. Win back churned customers. Churn cancellation survey example.

SaaS 98

SaaS Underperforming Technical Team Onboarding Churn 98

Valuize Consulting

OCTOBER 7, 2021

For example, in Sales, you can take your Annual Revenue Target, divide it by the Projected Revenue Attainment Per Headcount (factoring in some ramp time) and out comes a Headcount projection. CFOs are always going to ask their CCOs to think about costs and retention. This includes downsells, churn and expansions.

Customer Success 52

Customer Success New CTO Scale Headcount 52

Tom Tunguz

MAY 14, 2014

In addition to mitigating churn, CS teams increase account revenue, which in many SaaS companies, can grow to be multiples of the first year’s customer value. Customer success teams must justify the investment of building a CS team, often at the expense of headcount in another team. This can be a long process.

Customer Success 100

Customer Success Startup Headcount Compensation 100

CustomerSuccessBox

DECEMBER 14, 2021

Customer Success was initially used only when a customer was about to churn. Additional Read: Why is customer retention important. A mere 5% increase in retention leads to 25 to 95% increase in revenue. ” This is undoubtedly the best approach to drive retention. Customer Success mindset shift from cost to profit center.

Customer Success 52

Customer Success Customer Lifetime Value Headcount Retention 52

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. and “Which messages are most effective?”

Technical Review 249

Technical Review Customer Support Payment Methods Payment Solutions 249

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

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

Valuize Consulting

MAY 4, 2022

Without buy-in from your C-Suite and cooperation from your entire organizational ecosystem, your organization’s ability to scale customer engagement, maximize customer value across your customer segments and drive best-in-class Net Dollar Retention (NDR) is on the line. . What are the main reasons for the lost ARR in these areas?

Scale 52

Scale Customer Success Scaling Strategy 52

ChurnZero

DECEMBER 28, 2021

Or for ChurnZero to redesign our Churn Monsters à la Lisa Frank? Net Revenue Retention vs. Gross Revenue Retention: Explained. Have you ever wondered if you should be paying closer attention to your Net Revenue Retention (NRR) or Gross Revenue Retention (GRR) when analyzing churn? Top 10 Articles from 2021.

Sales Hiring 52

Sales Hiring Headcount Customer Success Outsourced Development 52

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? When you do, magic happens in retention.

Churn 315

Churn Sales Hiring Headcount Technical Review 315

OpenView Labs

MARCH 10, 2019

Over this time, our headcount has grown by over 10x, and our revenue has grown by over 60x. Focusing on Customer Success from the very early days of Typeform has been instrumental in improving both retention and acquisition, and has played an important role in our overall achievements. The challenge was retention.

Scale 69

Scale Customer Success Scaling Sales Hiring 69

ChurnZero

NOVEMBER 16, 2018

Customer Retention is Your Lifeblood. 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. Follow the Customer Code. Eleanor O’Neill (@lnroneill) November 8, 2018. pulseEurope2018.

Customer Success 49

Customer Success Scale Headcount Sales Hiring 49

SaaSX

FEBRUARY 28, 2021

Ideally, as a company scales, headcount doesn’t scale exactly in tandem. Churn Rate. Ah…you know there can’t be a B2B software article that doesn’t mention churn, right? Ah…you know there can’t be a B2B software article that doesn’t mention churn, right? That’s a revenue treadmill.

Payment Solutions 52

Payment Solutions Software Review Software Payments 52

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. Customer support can be one of the most powerful tools in your arsenal when it comes to improving retention, reducing churn, and building your brand with loyal, satisfied customers.

Scale 129

Scale Customer Support Scaling Headcount 129

InsightSquared

MAY 7, 2019

At the highest level, SaaS companies look at sales expense, headcount, sales productivity and SaaS metrics like: The cost of new customer acquisition (CAC). Customer churn or retention rates. Typical SaaS Sales Metrics. Customer lifetime value (CLV).

Scale 102

Scale Sales Hiring Metrics Sales 102

ProfitWell

DECEMBER 6, 2019

He references Dan Steinman from Gainsight , who says, “the natural tendency for customers is towards churn.”. If we fail, our customers will churn. But we know customer success reduces churn and increases expansion revenue, so CSMs do have a very serious purpose in an organization. What are your thoughts on this piece?

Scale 43

Scale CTO Hire Sales Hiring New CTO 43

Chart Mogul

JULY 15, 2021

We both noticed a similar pattern: alignment on key metrics breaks as headcount grows: More teams means more silos in processes and tools used to follow metrics. As a SaaS company, you can’t go wrong with setting quarterly goals on the following metrics: MRR and/or ARR Churn and/or Net dollar retention.

Underperforming Technical Team 52

Underperforming Technical Team Revenue Scale Communication 52