Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Results in an Increase in Revenue 2. Raise Prices for New Customers 2.

Pricing 111

Pricing SaaS Scale Churn 111

Chart Mogul

SEPTEMBER 6, 2023

You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc. Segmentation allows you to peel the onion layer by layer to … You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc.

Revenue 52

Revenue Churn Pricing Operational efficiency. 52

Blulogix

FEBRUARY 24, 2024

Revolutionizing Revenue: What is the Role of AI and Machine Learning in Agile Monetization? This blog post delves into how AI and ML are shaping the future of agile monetization, enhancing the way businesses approach billing, customer engagement, and revenue optimization.

Artificial Intelligence 52

Artificial Intelligence Machine Learning AI Search AI 52

Sixteen Ventures

AUGUST 14, 2022

The people in charge of your company – the Executives, Board, and Investors – want to improve a metric called NRR (Net Revenue Retention or NDR, Net Dollar Retention, if you prefer) for one very simple reason: it plays a direct role in the value of the company. What is NRR? Talk about efficient growth! Increase Expansion.

Customer Success 97

Customer Success Investment Sales Hiring Retention 97

Baremetrics

SEPTEMBER 9, 2021

When discussing the financial metrics for a SaaS company, revenue vs. profit is among the most common comparisons encountered. When a SaaS product or service has been developed, tracking the ROI (return on investment) involves always keeping revenue vs. profit at the top of mind. What is revenue? What is revenue?

Payments 103

Payments Revenue Payment Services SaaS Payments 103

Blulogix

NOVEMBER 8, 2023

Accelerating Subscription Business Growth with Usage-Based Pricing By BluLogix Team The subscription business model has long been recognized as a steady path to recurring revenue and business growth. The Evolution of Pricing Traditionally, subscription businesses offered fixed-rate plans.

Subscription 52

Subscription Payment Features Pricing Business 52

Clouded Judgement

DECEMBER 21, 2023

Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

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. It uses revenue and operating costs to determine the company’s value. The multiple depends on numerous factors, like sustainability and transferability of revenue and growth.

SaaS 102

SaaS Customer Lifetime Value Acquisition Metrics 102

Intercom, Inc.

NOVEMBER 14, 2018

If you’re forecasting short on your global revenue target, do you know how you’ll make up the difference? Average revenue per account (also referred to as Average Transaction Size (ATS) or Average Sales Price (ASP)). New logo revenue. Churn dollars. Gross customer churn. Net expansion revenue.

Sales Hiring 188

Sales Hiring Metrics Revenue Sales 188

SaaStr

DECEMBER 27, 2020

Those of us who’ve been around a while think of New Relic as a freemium and almost SMB tool, but today 77% of their revenue comes from accounts greater than $100k. 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.

Scale 291

Scale Outsourced Development SMB Cloud 291

SaaStr

DECEMBER 5, 2022

Startups often begin with a bootstrapping phase with little to no outside investment. Yet, funded startups can learn a lot from the bootstrapped ones to grow smoothly and generate revenue. In SaaS, retention is usually driven by recurring revenue, cross-selling, and up-selling. Some customer churn is unavoidable.

Payments 130

Payments SaaS Payments Payment Solutions Venture Capital 130

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

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. Understanding Paddle in 2024 Catering to more than 3000 SaaS clients in over 200 markets, Paddle is a market-leading billing and revenue management software.

Payment Solutions 93

Payment Solutions Payments Payment Services SaaS Payments 93

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

ChurnZero

JULY 8, 2022

It was clear that, barring any wildly outlandish figures, customer retention wasn’t a dealbreaker in their decision to invest. Net revenue retention (NRR) is taking center stage as the qualifying metric for determining the health of a SaaS business. Net revenue retention defined. How can you increase net revenue retention?

Technical Review 98

Technical Review Software Review Retention Metrics 98

SaaStr

NOVEMBER 8, 2022

Ultimately, almost everyone in B2B SaaS, down the road, ends up getting 80%+ of their leads through their brand, through word-of-mouth, through second-order revenue, etc. So what makes SaaS burn so much cash, once you have enough revenue to cover the costs of the core teams you need to build and service the product? More on that here.

Scale 279

Scale SaaS Banking AWS 279

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

SaaStr

JULY 5, 2023

New Workloads Are Only a Small Percent of Today’s Revenue, But Are The Majority of Tomorrow’s. 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. New workloads, new uses of Mongo are actually just a small percent of revenue.

Scale 174

Scale cloud efficiency Cloud Business Model 174

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

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. We will see this show up in revenue figures in a quarter or two. ” Source: company filings Let’s get into some high level data. .”

Cloud 169

Cloud Software Benchmarks Retention 169

SaaStr

JANUARY 24, 2022

Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? 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.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

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. They represented about 5% of total revenue in total. And that’s still a decent amount of retained revenue.

Scale 232

Scale Sales Hiring Pricing Churn 232

OpenView Labs

FEBRUARY 5, 2019

Before there is time for customers to churn it’s just about adding in as many new customers as you can. But before we know it, if we aren’t careful, we find our growth being stunted on the top line by customer churn. If revenue churn rate is too close to the capital burn rate, you’ve got a problem to solve.

Churn 66

Churn Revenue SaaS Acquisition 66

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. Not only did they bring in and convert more leads, but they also moved part of the customer base upmarket, increasing LTV and revenue.

Scale 220

Scale Strategy Scaling Outbound Sales Team 220

Clouded Judgement

MARCH 10, 2023

What excites me is the strength of these platforms are reflected in new customer adds and stable gross churn. Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. Even a DCF is riddled with long term assumptions.

Cloud 244

Cloud Trends Subscription Payment Features 244

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 104

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 104

SaaStr

FEBRUARY 9, 2024

The first role that comes to mind is driving revenue and it’s probably within sales. New hires in your GTM team will usually fall within one of four categories: Distribution Revenue Storytelling or messaging Some form of operations Most of the time, it’s distribution or revenue, qualify people as in or out for those two areas.

Scale 251

Scale Sales Hiring Sales Marketing 251

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

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. Net revenue retention was near 70%, a far cry from the 100%+ that most SaaS companies aim to achieve.

Pricing 55

Pricing Outsourced Development Marketplace as a Service AWS 55

ProfitWell

SEPTEMBER 30, 2019

Revenue is good. Lots of revenue is great. Optimized revenue is better. Because the world of e-commerce is so restless, as soon as your company finds itself bringing in steady revenue, the first question anyone will be asking is: How can we make this performance even better ? What is revenue optimization?

Revenue 40

Revenue Pricing Outsourcing Services Merchant Services 40

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

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. The process involves: 1.

Sales Recruiting 52

Sales Recruiting Technical Review Enterprise Cybersecurity 52

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? If the answer is no, then there is potential for revenue-related issues as your company matures. What is an effective price?

Pricing 52

Pricing Subscription Payment Features Strategy 52

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 287

Technical Review Venture Capital Innovation Pricing 287

Natalia Luneva

JANUARY 13, 2021

This obsession with getting new customers is natural: the more customers you convert, the more revenue you will make. 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? source ).

SaaS Payments 105

SaaS Payments Payment Methods Churn Payment Services 105

ProfitWell

JUNE 13, 2019

Revenue growth might well be the king of all SaaS metric monsters, the Godzilla of the balance sheet. And what works for the beast from the deep works for revenue growth: to master it, you must first understand it. Though you can calculate revenue growth with a simple formula, found below, that’s only half the battle.

Revenue 49

Revenue Churn Pricing Subscription 49

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