This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
However, SMBs have a certain level of inherent churn. You can still make them super happy, but a subset of small businesses will churn at that rate anyway. # product, which was just top of the funnel had inherent churn. Growth gets strong, customers are happy but churn still remains stubbornly high.
Dear SaaStr: How Big Should The Addressable Market Be to Go into Vertical SaaS? If I see evidence of that, I get very bullish — even if the market doesn’t seem huge. Then market size starts to be super important. Is the market really big enough so that 10% penetration gets you $100m in ARR? That’s the question.
“Churn” is a term we all use in SaaS as a core metric, but its roots, as near as I remember and can tell, come from our B2C colleagues. Folks churn out of their Verizon plan, their Netflix subscription, etc. And sometimes they’ll churn even just for a modestly better deal. the dynamics are similar.
Dear SaaStr: What Are Some Signs of Potential Churn Even if Usage is Strong? Even with strong engagement, there are subtle signs that a customer might churn. At Adobe Sign, we learned that even happy customers could churn if they werent fully embedded in the workflow or if a competitor sold over our heads.
Speaker: Johanna Rothman - Management Consultant, Rothman Consulting Group
Maybe your product was once the best option on the market, but due to missing features and difficulties, its competitive edge has dwindled. Frustrated customers = high churn! The goal is to discover these reasons before customers churn. This objective can be achieved by analyzing a blend of leading and lagging indicators.
Dear SaaStr: How Can a SaaS Business Reactivate Churned Customers? This may sound simple, but the #1 thing you can and should do is create a series of marketing campaigns targeted only to churned customers. And also send that to your “lost” and churned customers. The hit rate is low, but this also works.
They use pricing as an offensive tool to reinforce their product’s value and underscore the company’s core marketing message. Startups operate in newer markets where pricing standards haven’t been set. In addition, these new markets evolve very quickly, and consequently, so must pricing.
Should We Cut and Marketing To The Bone? Look don’t throw money away on sales & marketing. If you are doing intiatives in marketing and they are bringing in zero customers, just stop those things. But more often, sales and marketing is closing some deals, just not enough.
SaaStr ) And once you have at least a little revenue ($1m-$2m ARR or so), net revenue retention / churn. NRR and churn aren’t necessarily statistical significant before Year 2-3 and before $1m-$2m in ARR). Churn is important, but in the early days, just drive it down. Probably, measured as NPS (more here: I Was Wrong.
ClinicSense is a SaaS platform that supports over 7,000 massage therapists who use it for appointment management, payments, scheduling, marketing activities and more. This often led to churn as customers decided to cancel or abandon their account, preventing ClinicSense from realizing the full lifetime value (LTV) of its users.
But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Endemic churn. The type of churn you almost can’t do anything about. Net net, most true SMB SaaS products often churn on the order of 3% per month almost no matter what you do. And measuring it.
Increasingly, you’ll hear the term “business outcomes” popping up in software marketing. Leaving too much to the mind of the reader by omitting advantages and benefits is — not to put too fine a point on it — the cardinal sin of marketing. Look, this is a tricky marketing problem. It’s not great.
Here’s how to approach it: Show the Big Picture, But Back It Up Investors want to see your ambition—how you’re going to dominate your market or create a category. Use a Bottom-Up Approach for Projections Startups often get into trouble by pitching top-down projections, like “If we capture 1% of a $10B market, we’ll hit $100M ARR.”
Workato’s SVP of Embedded Sales and Director of Solutions Marketing joined us at SaaStr Annual to talk about how to nurture customers — a great topic in general, but especially for embedded sales and APIs that can take a while to scale. Marketing + CS alignment is worth 10x more than you think. Customer Success.
After identifying that you have a great product that the market needs, the next step is to determine if you have the proper messaging, if you are using the correct channels, and if you have the most effective tactics in place. Sales effectiveness = Product Market Fit*(Messaging + Channels + Tactics).
Marketing : Likely no VP of Marketing yet either — unless. You might bring on a growth hacker to help with demand gen, but youre still figuring out product-market fit. I Hired My VP of Marketing at $20k MRR. 5M ARR : Start layering in Sales Ops, Enablement, and more specialized marketing roles.
Dear SaaStr: What Do You Do With Churned Customers? You put them into a Get Them Back bucket and re-market to them with a dedicated program. 1, Put them in a dedicated marketing bucket for Reacquisition. Seasoned VPs of Marketing often have done this before. The post Dear SaaStr: What Do You Do With Churned Customers?
Basic questions like “What’s our churn rate?” After launching out of Y Combinator in 2018, RevenueCat quickly hit product-market fit. Market Expansion: The mobile subscription market exploded during COVID. ” or “What’s the lifetime value of subscribers?” The Bottom Line From a $1.5M
If you try to save cash by offering below-market comp, youll end up with mediocre reps who cost you more in lost deals than you save in salary. Failing to Align Sales with Marketing and Product : Enterprise sales requires tight alignment across teams. If these teams arent working together, deals will stall, and churn will rise.
Think your customers will pay more for data visualizations in your application? Five years ago they may have. But today, dashboards and visualizations have become table stakes. Discover which features will differentiate your application and maximize the ROI of your embedded analytics. Brought to you by Logi Analytics.
So lately I’ve listened to a few calls from churned customers from portfolio companies. If you’re growing, generally, you’re focused on a market or market segment that’s also growing. If you’re growing, generally, you’re focused on a market or market segment that’s also growing. Not shrinking.
The average churn rate for the software industry as a whole is 14%. Thats actually one of the lowest churn rates across all industries. That said, industry experts agree that your SaaS companys goal churn should be below 2%. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.
For 90% of startups, if you’re struggling right now … sure blame the market. But it’s not that, if your market is huge. Note: I don’t want to hear seed companies complain about ‘the market.’ Because you’ve barely penetrated a huge market. market share from Shopify, Zendesk, Salesforce, etc.
Akshay Sharma, Head of Pricing and Monetization at Miro explained: “As you change the green side, your product, your features, go to market, your marketing, budget discounts, you have to change the pricing side appropriately so that you can achieve the goals you want.” ” So, How Should You Price?
Your customer success team should be experimenting with AI-powered sentiment analysis and churn prediction. ” and VPs of Marketing are experimenting with AI-generated content, individual contributors get the message that AI fluency is part of their job, not someone else’s. The same applies to AI today.
We go to market with our platform in three ways: Core, Pro and FinTech products. ” Market Opportunity From the S-1: “In the United States and Canada alone, end customers spend approximately $1.5 Today, we serve trades and markets that represent approximately $650 billion of the total $1.5
The 40% Tipping Point : With 40% of workloads now in the cloud, SaaS has hit market maturity. The easy growth is over—companies like Zoom exemplify this with saturated markets and nowhere left to expand rapidly. Despite a $150B labor market vs. $15B software market, actual expansion is only 2-3x, not the theoretical 10x.
Speaker Bio Jason Lyman leads marketing at Customer.io, where he’s helped scale the platform to power over 35 billion customer interactions for 7,000+ high-growth companies. Before Customer.io, Jason built and scaled marketing teams at several B2B SaaS companies, with a focus on customer engagement and revenue operations.
Of Marketing. Worst case, they still use it and are happy, and churn less. At least take market share. Go Hire That Missing VP! OK, this has been on our New Years list since inception, but its as true as ever. The best way to get out of a hole is to hire a great VP. A great VP of Sales. Of Product. Whats your #1 VP hole?
With the turbulence in the market in 2023, sales cycles have only been getting longer and a lot more complicated. At this year’s SaaStr Annual , CEO and co-founder of Capchase Miguel Fernandez and Director of Marketing Rose Johnson share five tips for getting sales right in any market. to find out what was going on.
Churn and Expansion : For existing customers, analyze churn rates, upsell/cross-sell performance, and NRR (Net Revenue Retention). AI can help predict churn and identify expansion opportunities. Alignment Across Teams : Ensure alignment between sales, marketing, and customer success. If so, why?
And I’m going to suggest two that will worry you a lot as you scale — Churn and Sales Cycle — you should track, but not obsess over, until you are well, well past initial traction, that first $1m-$2m ARR. >> Let’s Start with Churn. Absolutely, getting your churn trending downward is important.
Procore exemplifies this approach in the construction industry a massive market representing 13% of global GDP. The Power of Authentic Founder-Market Fit The most successful vertical SaaS companies are often built by founders solving problems they’ve personally experienced.
That they can get away without no one in the role, or a just a junior person in marketing, in product, in success, in biz dev, etc. “Why Do I Need a VP of Marketing? ” Another one I see a lot is, let’s start with a Director of Marketing. 95/100, only a VP can really own the whole thing in marketing.
Despite having spent almost no direct dollars on marketing, they reached 360,000 paying customers at an average ACV of $276—compared to enterprise darlings like Wiz who hit $100M with 260 customers at $384K each. They achieved this with $0 invested in marketing and just 131 employees. The kicker? Build for sharing from day one.
Dear SaaStr: How Does a SaaS Startup Break Out in a Crowded Market? Find one segment of the market to win in. Most SaaS markets are crowded today. They might give up on SMBs, or freemium, or higher churn segments. A bit more here: 5 Ways to Enter a Crowded Market. But you might be able to do well there.
It combines renewals, churn, and upsells. From product to sales to marketing, every department should be aligned around making customers successful. Track metrics like churn, NRR, time-to-value, and customer health scores. The goal is to act before customers even realize theyre unhappy 2 3.
A strong GRR (80-90%) ensures your base is solid, and youre not just masking churn with upsells. This isnt just about NPS scores, its about creating pound-the-table advocates who will vouch for your product in the market. VPP Quotas : Product adoption, feature stickiness, churn reduction, and roadmap execution.
While this title is SMB-oriented, the advice applies to Mid-Market and Enterprise, too. Early churn was a massive drag on efficiency. They needed to get their hands on early churn. This led to fairly unsustainable levels of churn of early churn. Nail down one small niche of a market before you hit the gas to scale.
ARR (already doubling the old “best in class” annual benchmark) Median : $700K ARR Bottom quartile : $500K ARR The top performers are starting to pull away significantly, suggesting they’ve cracked something fundamental about product-market fit that others haven’t. By month 6: Top quartile : $2.0M
Referrals are Chime’s largest acquisition driver since 2022 , helping bring sales & marketing spend down to 26% of revenue in Q1 2025, from 42% in 2022. The 2021 fintech hype is mostly overpublic markets now reward fundamentals. And a good comp for Ramp, Brex, and others. 5 Interesting Leanings: #1.
Artificial intelligence is transforming digital marketing by empowering us to do our best work. The right AI marketing tools will help you automate repetitive tasks, make data-driven decisions, and unblock your creativity. The shift to AI-powered marketing has been dramatic.
If youre selling to SMBs, churn can be a killerfix it now. The key is to reignite growth where possiblewhether through expanding your TAM, improving your go-to-market strategy, or doubling down on upsells. Operational Focus At 35% growth, you need to optimize every dollar spent. Double down on upsells and cross-sells to improve NRR.
We organize all of the trending information in your field so you don't have to. Join 80,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content