Sixteen Ventures

SEPTEMBER 10, 2020

It’s critical to understand why your customers churn, but if you’re relying solely on the reason the customer gives you for that churn, you’re definitely missing the actual reason. It’s easy, but it’s not going to get you the answer you need to keep future churn from happening. Churn: Syntax and Nomenclature.

Churn 131

Churn Customer Success Systems Review Outsourced Development 131

Blulogix

NOVEMBER 8, 2023

Transforming the Technology Industry: The Power of Usage-Based Pricing By BluLogix Team The technology industry is in the midst of a profound transformation. Traditional pricing models, such as fixed subscriptions and one-time purchases, no longer align with the dynamic and ever-evolving nature of this sector.

Technology 52

Technology Pricing Payment Features Subscription 52

Clouded Judgement

MARCH 22, 2024

At contract expiration these customers either renew (sign another contract with same annual value), expand (sign another contract with higher annual value), contract (sign another contract with lower annual value), or churn (stop being a customer and spend goes to zero). Altimeter is an investment adviser registered with the U.S.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

JANUARY 24, 2024

How do you diagnose and solve churn? So, Dini came in, looked at the data around churn and usage, talked to customers, defined and narrowed Lattice’s core ICP, and made a few changes: They put a minimum in place not to sell to anyone under $4k. So, Calendly decided to invest in going Enterprise.

Scale 209

Scale Sales Hiring Scaling Revenue 209

Blulogix

DECEMBER 14, 2023

Demystifying UBP: Models and Metrics – A Deep Dive into Your Pricing Playground By BluLogix Team Welcome, B2B pioneers, to the playground of UBP models and metrics! While the idea of usage-based pricing might seem exhilarating, navigating its intricacies can feel like deciphering an ancient scroll. Fear not, intrepid explorers!

Pricing 52

Pricing Metrics Subscription Payment Features 52

OpenView Labs

JANUARY 13, 2022

Welcome to the third edition of the Pricing Transformations series. Pricing Transformations in 2020. Pricing Transformations in 2021. Pricing models must be adaptable – 4/5 on this. We took off a point as there are still too few people who understand pricing models well enough to make them adaptable.

Pricing 82

Pricing Payment Services SaaS Payments Payment Solutions 82

Chart Mogul

NOVEMBER 24, 2022

After all, it’s the customer success teams that drive growth through retention and churn mitigation. So, what’s the best way to drive retention and mitigate churn in 2023? After all, it’s the customer success teams that drive growth through retention and churn mitigation. Analyze Your Churn Data for Any Patterns.

Churn 52

Churn Retention Underperforming Technical Team Scale 52

SaaStr

DECEMBER 5, 2022

Startups often begin with a bootstrapping phase with little to no outside investment. Experiment with different plans and position the pricing as whole numbers. Feedback collection is the focus here to prevent future churn. Some customer churn is unavoidable. Pricing is another vital lever in your business.

Payments 130

Payments SaaS Payments Payment Solutions Venture Capital 130

User Pilot

MARCH 25, 2024

An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. Revenue-based valuations are more suitable for SaaS startups because it doesn’t take into account upfront investment which affects SDE or EBITDA negatively. Churn rate = (7/200) x 100 = 3.5%.

SaaS 105

SaaS Customer Lifetime Value Acquisition Metrics 105

Subscription Flow

APRIL 23, 2024

Invest in the right billing and subscription-management software to automate your workflows after carefully assessing three of the best options in the market. Smart Dunning for Better Retention High churn rates are the worst when you have spent thousands of marketing dollars nurturing these customers.

Payment Solutions 93

Payment Solutions Payments Payment Services SaaS Payments 93

SaaStr

NOVEMBER 8, 2022

As soon as your competitor cuts prices and quintuples their marketing budget … and is everywhere … can you stay out of the arms race? Raise prices tomorrow. If your competition is fierce, raise prices even more. Don’t wait to invest in customer success and account management. 18 in marketing?

Scale 275

Scale SaaS Banking AWS 275

Natalia Luneva

JANUARY 13, 2021

This article will answer the main questions that SaaS founders and market ers have about losing SaaS customers, in other words, user churn: What is SaaS churn definition and why lowering it matt ers? How to calculate this metric and what’s the average SaaS churn rate? How can Sa aS companies reduce its churn rate?

SaaS Payments 105

SaaS Payments Payment Methods Churn Payment Services 105

ProfitWell

OCTOBER 16, 2019

It’s the question on every SaaS founder’s lips: Is my churn rate too high? A “good” churn rate for one company might be terrible for another. Worse, comparing average churn rates across different markets and industries will leave you mired in confusing statistics and contradicting studies. What is the average churn rate?

Churn 55

Churn SaaS Payments Payments Payment Methods 55

OpenView Labs

MARCH 4, 2021

For their first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. The company struggled with poor churn and anemic expansion revenue. So in 2011, they introduced usage-based pricing. This pricing change allowed HubSpot to share in the success of its customers.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals.

Pricing 52

Pricing Subscription Payment Features Strategy 52

SaaStr

DECEMBER 27, 2020

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. New consumption pricing model has increased revenue 15% where rolled out. This is a big take-away.

Scale 282

Scale Outsourced Development SMB Cloud 282

OpenView Labs

FEBRUARY 4, 2020

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Pricing Is Your Best Shot at Growing 25% Faster.

Pricing 60

Pricing Scale Technical Review Software Review 60

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue.

Retention 193

Retention Revenue Startup Sales Hiring 193

Baremetrics

FEBRUARY 2, 2021

This article will walk you through a full Stripe vs. Zuora comparison including features, pricing, user reviews, and more. Stripe vs. Zuora: Features Stripe vs. Zuora: Pricing Stripe vs. Zuora: Reviews Stripe vs. Zuora: The Bottom Line Conclusion. Get deep insights into churn, LTV, MRR and more to grow your business.

Payment Methods 75

Payment Methods Payment Services Technical Review Merchant Services 75

SaaStr

APRIL 26, 2020

VCs are Worried about “Deflation” in terms of pricing funding rounds. Mark sees multiples falling, which doesn’t just lead to lower prices … it leads to a Stop. “It makes price discover much more difficult.” It Angers Folks, So VCs Default to Newer Deals vs. Lower Priced Rounds.

Technical Review 282

Technical Review Venture Capital Innovation Pricing 282

SaaStr

APRIL 4, 2023

This means you can raise prices, add modules, and expand, increasing the average revenue per customer account (ARPA). If churn doesn’t grow, your lifetime customer value is at its peak. A Strategic Move Upmarket Another company CIPIO Partners invested in needed to make a strategic move. Otherwise, things will slow down.

Scale 214

Scale Strategy Scaling Outbound Sales Team 214

Tom Tunguz

OCTOBER 30, 2013

Every SaaS business suffers from churn. If churn isn’t managed properly, the lost revenue from churned customers offsets new revenue and the business flat-lines or suffers negative revenue growth. Each strategy requires different levels of investment but achieves similar results. Revenue Churn as %.

Churn 100

Churn Startup Strategy SaaS 100

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions. Book the demo to see how!

SaaS Payments 105

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 105

CustomerSuccessBox

JUNE 8, 2022

The capacity to forecast that a specific customer is at a high risk of churning while there is still time to do something about it is a major new possible revenue generator for any company. We, at CustomerSuccessBox , spoke to some of the Top Customer Success Influencers to know how they manage churn! Q: Please introduce yourself.

Churn 52

Churn Management Customer Success Subscription 52

SaaStr

APRIL 2, 2023

Mistake: Not standardizing pricing and related systems early Every enterprise-oriented startup, including Gainsight, can fall into the same trap. And if you didn’t invest proactively in systems like CPQ early, you create a byzantine mess that’s impossible to scale. Invest in back-office systems early. And guess what?

Sales Hiring 247

Sales Hiring Scale Scaling Customer Success 247

SaaStr

JULY 5, 2023

I like this chart a lot showing both the awesome power of high NRR, and also how you have to invest in customers that scale with you over time. But those accounts grow dramatically over time, and don’t really churn. These days many are relying on upselling their existing base and raising prices to keep top line growth growing.

Scale 169

Scale cloud efficiency Cloud Business Model 169

OpenView Labs

SEPTEMBER 8, 2021

2021 has proven to be the year of usage-based pricing. . 45% of expansion stage SaaS companies now say they have a usage-based or consumption-based pricing model, according to data from OpenView’s forthcoming 2021 Finance and Operations benchmarks report. . Product: Treat product investments as a revenue-generating expense.

Pricing 64

Pricing Customer Success Scale Compensation 64

SaaStr

AUGUST 28, 2022

And I have the experience of investing in 5 SaaS unicorns and decacorns. They churn at the highest rate. For 40% of the price. 8 of the 9 that did renew, renewed for a higher priced sponsorship. By removing the Bronze sponsorship, folks had to buy a standard priced Gold sponsorship in 2022.

Scale 223

Scale Sales Hiring Pricing Churn 223

SaaStr

SEPTEMBER 12, 2021

A small part of SaaStr has been learnings from and tracking some of my investments. The first 3 have been case studies on SaaStr (Pipedrive, Algolia, and Talkdesk were VC investments #1, #2 and #3), so we can learn from them together. Net net, VCs talk about the best investments often being the ones the partners were most divided on.

Scale 196

Scale Sales Hiring Investment Mobile 196

Clouded Judgement

SEPTEMBER 12, 2023

Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs.

Cloud 169

Cloud Software Benchmarks Retention 169

Tom Tunguz

AUGUST 8, 2015

When we say a startup has raised a big round, we often mean the round is big in two dimensions - total amount invested and valuation. And when we say a big valuation, more precisely we imply the round was priced at a high revenue multiple. Investors are willing to pay a price ahead of the company’s current fundamentals.

Pricing 100

Pricing Startup Investment Revenue 100

OpenView Labs

JANUARY 9, 2020

Back in 2011, Netflix restructured their pricing in a big way. They unbundled streaming plans from the traditional DVD-by-mail business, increasing the price of the combined offering from $10 a month to $16 a month. Their stock price plummeted immediately following their Q3 2011 earnings release. You know the story. Humblebrag.

Pricing 70

Pricing Forecasting Churn Finance 70

Mucker Capital

APRIL 2, 2024

Buyers may also struggle to justify investments in new purchases and to convince their leadership team of the worth. Ideally, you as a seller are prepared from the beginning and avoid scrambling to justify pricing later in the process. Deals can slip due to a variety of reasons. Four Main Categories Where Pain Can change to Value.

Sales Recruiting 52

Sales Recruiting Technical Review Enterprise Cybersecurity 52

User Pilot

OCTOBER 29, 2023

WTP helps SaaS companies choose optimum prices for their products to maximize profit. The metric is also used to predict customer churn. The conjoint analysis simulates real-life situations where users have to choose between packages or plans made up of different features and prices. What is the willingness to pay?

SaaS 105

SaaS Interviewing Pricing Market Research 105

ChurnZero

FEBRUARY 22, 2019

Churn Monster #9: Cheater Customer. It’s time to talk churn monsters again. This month’s customer churn risk is a cheater. So, let’s take a look at scenario involving a cheater and how you might be able to save that customer from switching to a competitor and churning. Churn Monster #1 – Disengaged Customer.

Churn 40

Churn Marketplace as a Service Customer Success Subscription 40

SaaStr

JANUARY 24, 2022

It was too big a flag for a company at the edge of where I like to invest. With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing. He probably lost several millions in his purchasing price because of it.

Finance 320

Finance Outsourcing Services Systems Review Technical Review 320