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Dear SaaStr: How Big Should The Addressable Market Be to Go into Vertical SaaS?

SaaStr

The good news is, you can support these price points effectively with a very efficient inbound sales team, and/or a mix of self-serve and sales-led. Churn is all over the place with SMBs. There’s a whole other category of apps SMBs and SMEs can afford that cost $99-$299 a month or so. So be honest.

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The Innovator's Dilemma for SaaS Startups

Tom Tunguz

Because of the nature of SMBs, the startup must battle the higher churn rates of smaller customers which slow growth, creating the S curve above. At some point, the startup pursues the enterprise market to continue to achieve high growth rates with decreased customer churn. Smaller customers churn at higher rates.

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New at Intercom uncut: Watch our entire virtual launch event

Intercom, Inc.

So I ended up running a customer success management team, a support team. We had a pre-sales team. We had an inbound sales team as well, basically quite a few groups. Or I could use the survey to find out why customers turn from our product and use the data to enter them into a churn save campaign.

Scale 118
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Top 10 Resources To Help You Manage Your SaaS Sales Like a Genius

Incredo

You pay your salesperson when your existing users don’t churn and renew their subscription. . You can do that if sales team is actively included in customer retention process and contributes to customer success. Sales team’s responsibility is to bring new customers. Residual commission. New and expensive customers.

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SaaStr Podcast #364 with Figma Head of Sales Kyle Parrish

SaaStr

But we started out in what felt like a bunker room, and there was three of us and we’re setting up calls and starting to bring the inbound sales team out to Austin, Texas, which made sense in so many ways strategically. At Figma, for example, we actually don’t have a customer success team.