Foolproof Marketing Metrics to Measure


Have you ever gone heads down on a mission to get “the data,” build the reports and churn out some intricate dashboards only to forget what exactly you’re looking to extract from it all? Have a North Star Metric. Make sure to have your one north star metric.

SaaS Metrics Refresher #3: Churn

Chart Mogul

Welcome to our third installment of SaaS Metrics Refresher. Today we're tackling a big one: Churn. In SaaS, there are two form of churn, both of which are useful to analyze in certain scenarios. Customer Churn Rate. Net MRR Churn Rate. Is my churn rate too high?

Churn 56

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

What is MRR Churn? | SaaS Metrics FAQs Part 2

Chaotic Flow

Since publishing the original SaaS metics blog series and subsequent SaaS Metrics Guide to SaaS Financial Performance , I’ve received numerous inquiries on various details and hidden gotchas in SaaS metrics implementation. SaaS Metrics FAQ #4 | What is MRR Churn?

Churn 167

What’s behind those churn metrics?

Practical Advice on SaaS marketing

Churn is bad for software-as-a-service (SaaS) companies. But knowing there’s a churn problem is one thing; fixing it is something else. To bring down churn, we need to understand what’s behind the numbers. But fixing a churn problem means first diagnosing the cause.

Churn 151

How To: Burn the Churn


On this episode of the ProfitWell Report, Nathan Beckord , Co-Founder and CEO of Foundersuite , wants to know the best ways to combat churn, and we think it's safe to assume Nathan isn't the only one on the churn-solving mission.

Churn 101

The Silent, Lurking Churn: Activation Rates Less Than 90%


It took me a little while to see activation rates as literally one of the 3-4 most important metrics in SaaS, but it probably is. But just starting with activation and tracking it as a north star metric is enough.

Churn 215

1 Key SaaS Sales Metric to Fine-Tune Sales Productivity


For these reasons, accurately tracking key sales metrics and benchmarking your performance against peers and market leaders is critical to getting the most out of your sales resources. Typical SaaS Sales Metrics. Customer churn or retention rates. Sales is the Growth Engine.

Customer Churn Analysis: Why Analyzing Churn Is So Important - ProfitWell


There’s no more vital metric for a SaaS company to keep track of than churn : the rate at which customers are leaving your business and taking their subscription dollars elsewhere. What is churn analysis? Customer churn comes in many forms. Analyzing churn data.

Churn 99

Annual Plans Reduce Churn Dramatically, Data Finds


If they don’t feel like they’re getting value, then they’ll churn. Hence why annuals can be instrumental in lowering churn and ramping growth. Well, annuals do reduce churn pretty substantially, because your customers have one purchasing decision per year versus twelve.

Churn 109

The Top 4 Causes of Customer Churn and How to Address Them


So, instead of always seeking new customers, focus on keeping existing customers happy and preventing churn. Customers can churn for a variety of reasons, and it’s not always clear why they are leaving. The Most Common Causes of Customer Churn.

Churn 116

Average churn rate for SaaS: What is a good churn rate?


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. So how do you know what a healthy churn rate is for your SaaS company? What is the average churn rate? customer churn rate).

Churn 72

SaaS Metrics 101


Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. Dave writes regularly about SaaS metrics in Kellblog.

Churn Analysis: A 3-Step Guide to Analyzing Your Churn


Picture this: Over the past six months, your churn rate has gone from a respectable 4%, to now, over 10%. Or, you can pause, take a step back and analyze what went wrong by doing some churn analysis. Analyzing your churn doesn’t only mean knowing what your churn rate is.

Churn 90

The Top 7 Churn Management Strategies for B2B Enterprises


You are not powerless in the face of churn. There are almost always indicators that a customer is going to churn, which means that if identified early, a good Customer Success team can mitigate the risk and execute a successful recovery plan. Why Churn Matters.

Churn 114

CLTV: Important. But Not the North Star Metric It Used To Be.


In B2C and high-churn environments, it’s indeed a critical metric. But in SaaS, in the earlier days, we inherited a lot of our lingo and metrics from B2C web services. So we used their core metrics like “Churn” and “Lifetime value”. net churn of 2%-3% a month.

Using Customer Satisfaction Metrics: NPS Best Practices


Luckily, there’s a measure for that, too: customer satisfaction metrics. If you don’t measure customer satisfaction, you may be blindsided by customers who churn or discourage others from working with you. That’s why the Net Promoter Score (NPS) is a key metric to track.

Why Your SaaS Customer Churn Metrics Are Probably Wrong


If recurring revenue is the lifeblood of a SaaS business, high customer churn is its death knell, a warning sign that things are about to go seriously wrong. If left unchecked, customer churn can become a big problem

Churn 59

5 of the Most Revealing SaaS Customer Success Metrics


Whether you’re trying to retain more customers or accelerate new customer acquisition, your customer success strategy needs to start with the right performance metrics. 1) CUSTOMER CHURN RATE.

8 Top reasons for customer churn: understand why churn happens | ProfitWell


Their success blinds them to the hidden dangers every SaaS company faces—dangers like high customer churn. Understanding the top reasons why customers churn—and knowing how to adapt your approach and keep them around—is vital for keeping your SaaS business sustainable and profitable.

Churn 74

You Need a SaaS Churn Analysis ASAP. Here’s Why.


A SaaS churn analysis is more than a quick calculation of your customer churn rate. It provides a window into the causes and effects that are affecting your churn rate, including your customers’ needs and whether they are being met. SaaS Churn Analysis Benefits.

Churn 72

How to Measure Churn: Net Revenue Retention vs. Gross Revenue Retention


If your startup is a SaaS (or any other business with customers paying on a recurring subscription basis), churn is a critical metric – particularly net revenue churn and gross revenue churn – that will need constant measurement.

Track This, Not That: 6 Metrics That Matter

Rebilly | Insights Into Subscription Billing

Followers are one example of “vanity metrics.” Which metrics are nothing but flash and which will serve up useful facts to help your business grow? The post Track This, Not That: 6 Metrics That Matter appeared first on Rebilly.

Churn Monster: Championless


Churn Monster #12: Championless. It’s now been a full year since we first launched the churn monster blog series, can you believe it? customer churn risk ) and how that churn monster might be successfully defeated. Churn Monster #1 – Disengaged Customer.

Churn 82

Redpoint SaaS Startup Key Metrics Template

Tom Tunguz

Over the last decade or so, I’ve compiled a metrics sheet to summarise a SaaS business. Redpoint SaaS Metrics Template. This section covers employee satisfaction, headcount, and recruiting metrics. Sales breaks down the new customer acquisition metrics: total AEs, number of ramping account executives, bookings capacity, quota attainment and so on. Marketing digs into lead generation and conversion metrics.

What Is COVID-19’s Effect on Customer Churn—And What You Can Do About It in 5 Steps


The COVID-19 pandemic increased the risk of customer churn across almost every industry. COVID-19’s effect on customer churn may have already begun, but there is still plenty you can do to increase customer engagement and retain the customers you have worked hard to win.

Churn 84

Benchmarking Zoom's S-1:How 7 Key Metrics Stack Up

Tom Tunguz

If we examine net dollar retention, the current value of last year’s cohort today net of churn and gross of expansion, we see Zoom is in the top decile at 140%. These metrics are the result of exceptional product market fit.

The Metrics-driven SaaS Business

Chaotic Flow

My first serious lesson in the criticality of SaaS metrics was about six years ago when I was unexpectedly stumped in a board of directors meeting. I had totally neglected the impact of churn. Today we are witnessing the emergence of The Metrics-driven SaaS Business.

What is Net Negative Churn in SaaS

The SaaS CFO

Net negative churn occurs when your expansion revenue from existing customers totals more than your lost revenue from existing customers. This SaaS metric does not factor in any revenue from new customers, just existing customers. Churn Nathan Latka Net Negative Churn

Churn 81

How to Calculate Churn and Retention in SaaS

The SaaS CFO

Guide to Churn and Retention Metrics You’ve often heard that churn is a company killer for SaaS and subscription businesses. The post How to Calculate Churn and Retention in SaaS appeared first on The SaaS CFO. Churn Churn Formula Revenue Retention

Churn 73

How public SaaS companies report churn, and what you can learn from them

The Angel VC

While doing some research for another post I just stumbled on this excellent overview from Pacific Crest on the churn rates of publicly listed SaaS companies. I’ve seen posts with churn benchmarks of public SaaS companies before, but this one is by far the most comprehensive collection I’ve seen and I think it’s very useful. What’s maybe even more interesting than taking a look at the numbers themselves is to see how different companies define churn (or the inverse, retention).

Churn 183

Why churn prediction will save your company


Understanding which of your customers is most likely to churn can be an anxious business for a SaaS company. There’s a wealth of data on breaking down the likelihood of churn per customer—maybe too much data. What is churn prediction? churn, 2.5% churn, 5.0%

Churn 70

7 Proven Strategies to Reduce Churn (With Real Examples)


I spent over a week speaking with different SaaS founders and marketers about how they successfully reduced churn for their business. churn by doing something every SaaS business should be doing, but most don’t. What is churn? Those are just a few signs of a churn problem.

Churn 114

The SaaS Metrics Maturity Model

Chaotic Flow

Becoming a Metrics-driven SaaS Business is no easy task. However, the financial rewards of moving beyond standard SaaS financial metrics to SaaS customer success metrics and ultimately to sophisticated predictive analytics are significant.

Customer Churn vs Revenue Churn: What's the Difference?


Churn is a really big deal in SaaS. Customer churn, or revenue churn? Today, I'm looking at the differences between these two essential SaaS metrics , and helping you to use them to monitor and improve the growth of your own SaaS startup but which is a "bigger" deal?

Churn 67

Reducing Churn: ROI-Focused SaaS Strategies for Customer Success


Fear of customer churn can make you feel you’re standing above a trap door, like the floor could fall away at any moment. We believe in data-driven, proactive customer success that lets you take control of your churn risk and strengthen your customer relationships. Reducing churn in this customer-centered subscription economy means placing the customer at the center of everything you do. In short, customer knowledge conquers churn fear. Why SaaS Customers Churn.

Churn 74

What are the most important metrics for SaaS?


In the early days, there are probably only 5 metrics that really matter: ARR. NPS is A Great Core Metric. And maybe … net revenue retention / churn. The post What are the most important metrics for SaaS?

Customer churn prediction models: lowering CAC, maximizing retention


Churn is a scourge on subscription businesses. That’s exactly what a churn model can do. Building a predictive churn model helps you make proactive changes to your retention efforts that drive down churn rates. What is a churn model? Voluntary churn.

What’s the “Cause of Death” in Your Churn Reporting?


In looking at this issue across several companies, I’ve noticed a disturbing trend / missed opportunity in how many SaaS companies classify the reason for customer churn. In churn-speak, “yes, the customer who churned issued a churn notice and chose not to renew.”

Churn 61

Driving SaaS Customer Acquisition w/Success Metrics

Chaotic Flow

As a SaaS business matures, the importance and value of SaaS metrics increase. Most SaaS businesses begin their journey down the SaaS metrics path by tracking recurring revenue in relation to customer acquisition costs. After building a solid customer base, churn becomes a priority.

SaaS metrics aren't just for investors. You need them, too.


often talk about B2B SaaS metrics from the perspective of what investors want. If you don’t have easy access to the metrics they expect (or, worse, if they’re wrong), your valuation could suffer and that’s the last thing SaaS founders, CEOs and CFOs want to hear. Metrics fill that gap.