SaaStr

MAY 1, 2024

SMB Churn coming down, but still at SMB-Like Levels Zoom for years defied what we knew about SMB churn. But in the end, today, at scale, their small customers churn is at the same high rates as other “grab and go” SMB products. Still, they’ve brought churn down from 3.6% What a crazy story.

SMB 260

SMB Scale Banking Enterprise 260

ChurnZero

APRIL 1, 2024

When companies think about investing in their customer base, they are usually thinking about driving product adoption, reducing churn, or even delivering expansion revenue. Invest in your customers and stay close to them as they mature in their careers across companies. This is a missed opportunity.

Investment 92

Investment Sales Funnel Customer Success B2B 92

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 227

Retention Revenue Startup Sales Hiring 227

Chargebee

DECEMBER 8, 2023

Some of us have heard/read/believed (even before 2023) that retaining customers delivers better ROI for our invested capital than spending additional money to acquire new customers. Churn is a deceptively simple concept: Simple because it’s easy to align on the truth that customer churn is terrible […]

Retention 76

Retention Churn Payments Management 76

Intercom, Inc.

OCTOBER 7, 2020

. “Support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn” Indeed, if you look at the broader financial models of customer support, you’ll see that support isn’t just a cost center, but a strategic investment that increases customer retention and reduces churn.

Customer Support 196

Customer Support Investment Scale Retention 196

User Pilot

JANUARY 31, 2023

How to prevent churn by identifying at-risk customers? In SaaS, you can grow your revenue only if your churn rate is low, so retaining at-risk customers is crucial. In this article, we will discuss the ins and outs of at-risk customers, how to detect them, and five actionable strategies to help you prevent churn.

Churn 97

Churn Underperforming Technical Team SaaS Payments Payment Solutions 97

Baremetrics

AUGUST 3, 2021

We’re here to tell you that all revenue is good revenue. But there are nuances that you need to know when operating your SaaS business when it comes to revenue. Those nuances come into play when understanding the different types of revenue in your SaaS business. What is Revenue? Types of Revenue 1.

Payments 98

Payments Revenue Payment Services SaaS Payments 98

SaaStr

JULY 13, 2020

Q: What was your failed investment experience and where will you never invest funds again? I’ve made about 30 material investments. Most have been successful, but of course not all have and I’ve been reflecting on the ones that didn’t, because they still had attractive elements when I invested. More on them here.

Technical Cofounder 241

Technical Cofounder Investment New CTO CTO 241

Totango

DECEMBER 28, 2021

Knowing how to fight customer churn is critical for keeping SaaS business models sustainable. The more customers you lose to churn, the more you have to invest in new customer acquisition to maintain your revenue, and the harder it becomes to grow your business. Invest in Your Customer Success Team.

Churn 96

Churn Strategy Technical Review Benchmarks 96

Chargebee

DECEMBER 12, 2023

Some of us have heard/read/believed (even before 2023) that retaining customers delivers better ROI for our invested capital than spending additional money to acquire new customers. Churn is a deceptively simple concept: Simple because it’s easy to align on the truth that customer churn is terrible […]

Retention 52

Retention Churn Payments Management 52

SaaStr

JANUARY 31, 2024

If you'd just invested in ServiceNow's IPO You'd be up 3,094.02%!! So you wouldn’t expect much overnight churn. 63% of Revenue from North America Global revenues are slowly creeping up as a percent of total. #7. at that scale, with 1,900 $1m+ customers. Far, far ahead of the average of 6x today.

Enterprise 295

Enterprise Scaling Churn Engineering 295

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

Intercom, Inc.

AUGUST 12, 2021

He’s been the Chief Revenue Officer and Chief Strategy Officer at Dialpad, the cloud communication platform, since the spring of 2018, but his fascination for conversations and natural language processing came even sooner. Push support to drive revenue. Could this trend be changing? Reduce the complexity of your tech stack.

Revenue 223

Revenue Scale AI Search Customer Support 223

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

Neil Patel

MARCH 26, 2021

From social media to Google Ads , companies invest thousands of dollars a month into paid ads. However, there’s a lurking metric you might not be tracking: your PPC churn rate. If your PPC conversion rates are high, but your overall revenue isn’t, the issue might not be your ad. What Is PPC Churn Rate?

Churn 141

Churn Software Review Onboarding Interviewing 141

Clouded Judgement

APRIL 11, 2024

The first few months of this year felt like a lot of churning in the market. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Beating consensus revenue estimates is the first aspect of a successful quarter.

Cloud 177

Cloud Software Azure AWS 177

Totango

JANUARY 26, 2021

Being proactive about churn prevention provides an antidote to customer attrition. Read on to learn what churn is, how an attrition analysis can help you pinpoint why you’re losing customers, and what steps you can take to prevent customer churn. What Is Churn Rate and How Does It Relate to Customer Retention?

Churn 89

Churn Retention Underperforming Technical Team Technical Review 89

Baremetrics

AUGUST 18, 2021

Overview Baremetrics Application of Baremetrics on Net Revenue and Operating Income Dashboards and metrics Forecasts Benefits of using Baremetrics Why Do You Need Baremetrics? Overview In general conversation, the terms revenue and income are interchangeable. Table of Contents. Conclusion. It is a SaaS analytics platform.

Payments 90

Payments Payment Services Revenue SaaS Payments 90

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

ChurnZero

SEPTEMBER 16, 2022

When a financial slowdown approaches, the smartest businesses look for areas where their investment has the best leverage. In good times, a lot of investments that a company makes are really focused on new sales. Focus on your customers’ top three churn risks. What is most important for a business is driving revenue.

Customer Success 98

Customer Success Investment Churn Retention 98

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 3, 2023

can invest in marketing that takes a little while to pay off). Non-Recurring Revenue Doesn’t Count, At Least Not as Much. If your revenue from any stream can go down in a given month or quarter, it’s not recurring. Pass-Through Revenue Simply Doesn’t Count. Is it OK to recognize pass through revenue as “revenue”?

SaaS Payments 227

SaaS Payments Metrics Payments SMB 227

Subscription Flow

DECEMBER 5, 2023

Maximizing recurring revenue, increasing sales, retaining customers , and achieving all such business targets is the dream of every subscription business retailer. But what is the reason to track metrics and how do they relate to recurring revenue? Customer churn rate related to the billing performance metrics. Let us help you!

Payment Features 52

Payment Features Subscription Metrics Revenue 52

SaaStr

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. 2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. After all, 31% + 29% = 60%.

SaaS 290

SaaS Technical Review Benchmarks Azure 290

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

ChurnZero

NOVEMBER 11, 2022

1: Customer Success teams are driving revenue and earning more influence. to the chief revenue officer—all indicating that Customer Success teams are revenue drivers. In companies with $500M or more in revenue, one-third (30.3%) of CS leaders have a place in the C-suite. The top metrics in CS are all revenue metrics.

Leadership 98

Leadership Trends Customer Success Investment 98

SaaStr

OCTOBER 17, 2023

So we’ve been talking about customer success at SaaStr longer than almost anyone else, going back to our very first posts in 2012, including on Second Order Revenue. Don’t Shortchange Second-Order Revenue. At SaaStr we’ve huge champions about investing early in CS. CLTV Isn’t The Whole Story.

Customer Success 195

Customer Success Scaling Management Churn 195

Sixteen Ventures

AUGUST 1, 2018

Churn… ya boring. I’m so over talking about churn and if you really understand what Customer Success is all about , you should be, too. Churn is so easy to get rid of… you just have to do five simple things. Once churn is a non-issue, you can focus on growth. Revenue growth from your existing customers.

Churn 129

Churn Underperforming Technical Team Sales Hiring Customer Success 129

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

Tom Tunguz

NOVEMBER 6, 2021

All of the sales and marketing dollars invested to obtain persuade the buyer to put digital ink to pdf have been recouped immediately. The payback period metric doesn’t capture the difference in the quality of the revenue/cash collections. And the company has two years of marginal profit to invest in the GTM.

Sales Hiring 332

Sales Hiring Scale Payments Payment Solutions 332

SaaStr

NOVEMBER 13, 2022

But I’ve made 30+ investments, and while many have been big wins, some haven’t. Here’s what’s caused startups I’ve invested in to fail, or at least, not to thrive and succeed: Founder conflict. This hasn’t driven any startup I’ve invest in 100% to failure, but it’s driven them to unoptimal exits. Too much churn.

Startup 229

Startup Venture Capital Scale Churn 229

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

Chart Mogul

JULY 8, 2020

Tired of the same ol’ “X proven ways to reduce customer churn”? SaaS companies dedicate a lot of time and money to the same goal — they want to give customers a reason to stay and reduce churn. But no matter what that personality is for your brand, it’s consistency that counts for reducing customer churn.

Branding 133

Branding Churn Underperforming Technical Team Retention 133

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

SaaS Payments 52

SaaS Payments Finance Churn Payment Services 52

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

SaaS Payments 52

SaaS Payments Finance Churn Payment Services 52

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 328

Finance Outsourcing Services Systems Review Technical Review 328