Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set.

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AI Revenue Cloud Technical Advisors 183

User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. How do you lower your churn rate and make sure all your users stick around? In this article, we’ll show you: What customer churn is and why it matters. Let’s get started.

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Churn Software Review SaaS User Experience 98

Baremetrics

FEBRUARY 15, 2021

Confused about customer churn vs. revenue churn? Churn means lost money or lost customers. These metrics help you understand two different things: Customer churn — the number of people you've lost. Revenue churn — the amount of revenue you've lost. Customer churn = customers lost.

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Churn Payments Revenue SaaS Payments 105

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? Your answer says a lot about the long term health of your company as a SaaS or subscription business. The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible.

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Churn Revenue Benchmarks Pricing 118

User Pilot

MAY 21, 2024

What is churn ? Simply put, churn measures how many customers businesses are losing over time — a central concern for companies dependent on customer retention , like those in the SaaS industry. Customer churn in SaaS is the rate at which customers stop using a service within a set timeframe.

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Churn Retention Software Review Metrics 52

User Pilot

JULY 18, 2023

Tracking your customer churn rate will help you keep tabs on business growth. You will have data sets for analyzing your churn/retention history, which will better position you to make intelligent business decisions. Types of churn rates you should calculate: customer churn rate, revenue churn rate , and involuntary churn rate.

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Churn Payments SaaS Payments Payment Solutions 98

Cobloom

NOVEMBER 22, 2021

Negative monthly revenue churn. The pinnacle in any subscription/retainer business, whether you're a PR agency selling service retainers, or a Software-as-a-Service (SaaS) company selling cloud software into the enterprise. What is negative churn?

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Churn Revenue Cloud Subscription 101

SaaStr

JANUARY 24, 2024

Mark Roberge , SaaStr fan-favorite and Co-Founder and Managing Director of Stage 2 Capital brought together some of the top CROs in SaaS during the SaaStr Annual to share some of their greatest learnings and pivotal moments leading some of the Cloud 100 SaaS companies. How do you diagnose and solve churn? Often, they do.

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Scale Sales Hiring Scaling Revenue 238

SaaStr

MARCH 17, 2021

Churn is a paramount topic in SaaS , as we all know. If every dollar of ARR is worth $6+ in the long term, including upsells and second order revenue … then of course, by the same token, for every dollar of ARR that churns … you’re losing $6 of notional ARR. As Almost Churn.

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Churn Metrics Customer Success Investment 251

Sixteen Ventures

JULY 17, 2020

Is 5% a good monthly SaaS Churn Rate? Read on to learn the answer… As a consultant to SaaS and Cloud providers that are looking to grow, I get asked what an acceptable SaaS churn rate is all the time. ” In 2020 I just say, “let’s make churn a non-issue.” And that’s okay.

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Churn SaaS B2C Pricing 133

User Pilot

MARCH 23, 2023

What are the reasons for customer churn in SaaS? As a SaaS company, your ultimate goal is to retain customers and keep them happy with your product. However, sometimes things don’t go as planned, and customers churn. TL;DR Customer churn refers to the rate at which a business loses customers within a specific period.

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SaaS Payments Churn Underperforming Technical Team Payment Methods 98

Sage Intacct

JUNE 14, 2022

If you’re a SaaS finance leader, your churn rate (the number of subscription cancellations you receive over a given period) is one of your most valuable performance SaaS metrics to track and improve.

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Churn Retention Revenue Finance 145

User Pilot

NOVEMBER 27, 2023

Wondering how churn rate vs retention rate are different? Other important metrics related to churn and retention efforts. Ways to analyze churn and improve retention rates based on the data. The churn rate refers to the percentage of customers discontinuing their subscriptions during a given time period.

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Churn Retention Benchmarks Customer Lifetime Value 102

User Pilot

SEPTEMBER 19, 2023

As your business grows and your focus shifts from acquiring new customers to retaining existing ones, churn prediction becomes an invaluable tool in your toolkit. Accurate churn prediction models help you improve the customer experience and prevent voluntary customer departures. What is churn prediction? Churn is expensive.

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Churn Machine Learning Artificial Intelligence Data Analysis 105

SaaStr

FEBRUARY 28, 2023

While Zoom Enterprise is growing at a healthy clip, churn is over 3% a month for its SMB customers As a result, it’s now predicting 1% growth next year 1% pic.twitter.com/i2k2W9QbVX — Jason Be Kind Lemkin  (@jasonlk) February 27, 2023 So Zoom has just been the craziest story of all time in SaaS. Good Times, indeed.

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SMB Churn Enterprise Engineering 234

Chart Mogul

JULY 6, 2023

Churn, SaaS companies should avoid it like the plague. But is the term churn always bad? Say hello to negative churn, churn’s much more friendly sister metric. You won’t avoid negative churn, in fact, you should do everything in your power to achieve it. But is the term churn always bad?

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Benchmarks Churn SaaS Customer Lifetime Value 52

The SaaS CFO

FEBRUARY 22, 2023

We know churn is bad for our SaaS company. Yes, we are losing customers and revenue. I’d like to dive into the financial details as to why churn is a SaaS killer. We hear a lot of rules of thumb in SaaS. Those can be […] The post Why Churn is a SaaS Killer appeared first on The SaaS CFO.

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Churn SaaS Metrics Revenue 59

SaaStr

JUNE 2, 2022

The amount of folks buying SaaS software is a force like we’ve never seen before, and even with some stock market drama, many top SaaS companies still trade at $4B, $10B, $20B or more just a decade after being founded. First, even in the darkest times of ’08-’09 — folks still bought more SaaS than ever.

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SMB SaaS Churn Enterprise 321

SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. The SaaS “Rule of 40” has gained popularity due to its simplicity, requiring only two common financial metrics to be added together. What Is The SaaS “Rule of 40”?

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SaaS Technical Review Benchmarks Azure 274

FastSpring

APRIL 6, 2022

The first was about conversion optimization (CRO) for SaaS and software. We followed it up with deep dive into churn. You can hear much more about Fred’s churn reduction engine in our chat. The post How to Lower Churn for SaaS and Software (Interview with Growth Expert Frederic Linfjärd) appeared first on FastSpring.

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Interviewing Churn Software SaaS 136

SaaStr

MAY 21, 2020

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. I don’t have a perfect metric, but after working on this with a dozen+ SaaS companies recently, I have a simple heuristic: 90% or more of your customers need to activate in the shortest practical time.

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Churn B2C Metrics B2B 289

SaaStr

MAY 20, 2024

Not Jumping on High Churn Some types of churn certainly can be addressed over time. It can take years for some SMB SaaS companies to hit and cross 100% NRR, for example. But if your churn and retention numbers aren’t at least mid-pack for your category, don’t let it lurk. Nothing is static.

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Trends Scale Sales Hiring Venture Capital 290

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. A SaaS Founder’s Guide to PR. The Private Equity Math of 1+1=3 in SaaS Acquisitions. Navigating the CRO and CMO Relationship with G2 and SalesLoft: Mike Weir, Chief Revenue Officer, G2; Steve Goldberg, Chief Revenue Officer, SalesLoft; Amanda Malko, CMO, G2.

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Sales Hiring Revenue Scale SMB 275

The Angel VC

NOVEMBER 30, 2017

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.

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Churn SaaS Retention Metrics 226

User Pilot

MAY 13, 2024

When it comes to product management, you need to look at different SaaS dashboard examples to see what kind of product analytics you can measure, and how. Monthly recurring revenue dashboard tracks revenue trends and sources, helping focus on profitable strategies and customer segments. Total revenue. Total new customers.

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Metrics SaaS Acquisition Retention 105

SaaStr

DECEMBER 3, 2023

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. But — they are broken if you aren’t really a traditional, 100%+ NRR SaaS company. In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software. It depends.

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SaaS Payments Metrics Payments SMB 213

SaaStr

NOVEMBER 21, 2020

At least 100% net negative churn (i.e., upsell/account growth + renewals – churn) for very small businesses. Let’s look at some of the top public SaaS companies: Shopify — very SMB: 100%. 119% net revenue retention. On the low end for the enterprise SaaS companies, but still basically 120%. As It IPOs.

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Retention SMB SaaS Enterprise 338

SaaStr

NOVEMBER 8, 2022

You know what’s back in fashion today in SaaS? And that’s a lot rarer in SaaS. But so many SaaS leaders aren’t really profitable at $1B ARR even, Why not? And it’s not just public SaaS companies that are often struggling to get profitable. I’m an investor in maybe 30 SaaS startups. So is SaaS cursed?

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Scale SaaS Banking AWS 278

User Pilot

MARCH 25, 2024

Whether you’re planning your exit, seeking VC funding, or setting up ESOPs, a SaaS valuation is a must. Our article: Explains different SaaS valuation methods. Shows how to leverage PLG strategies to boost the value of your SaaS business. It uses revenue and operating costs to determine the company’s value.

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SaaS Customer Lifetime Value Acquisition Metrics 105

SaaStr

MAY 16, 2024

On the first episode of the Angles and Insight podcast, SaaStr Founder and CEO Jason Lemkin chats with Zapier CEO Wade Foster about the future of B2B SaaS in 2024 and beyond. He is a top VC in the industry and runs SaaStr, the largest SaaS event in the world. Zapier was last valued at over $5B.

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Sales Recruiting AI Search B2B Sales Hiring 245

SaaStr

JANUARY 14, 2021

Reducing churn in SaaS, along with increasing new ARR is the backbone to growing your business. In this guide, Andrea Webb, the SVP of Customer Success & Retention at Solarwinds , and Tim Willey, the SVP of Commercial Strategy & Operations at ForgeRock , share their tips for understanding and combating churn. .

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Churn Customer Success Subscription Payment Features 184

SaaStr

MAY 22, 2023

Not easy, but easier and easier: There was a bump in 2016, a Flash Crash in SaaS, when budgets were slashed, but it didn’t last long enough to really impact renewal cycles. SaaS markets had fully recovered later that year. Even the 2008-2009 downturn, while truly brutal, didn’t hit SaaS as hard as the rest of the economy.

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SaaS Churn Sales Software 254

User Pilot

MAY 5, 2022

Churn analytics helps you detect your product friction points and understand why users stop using the tool. This is crucial if you want to know how healthy your SaaS product is and what should be improved to increase customer retention and lower the churn rate. A churn rate over 10 % indicates trouble. Let’s begin!

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Churn Retention Subscription Payment Features 98

User Pilot

DECEMBER 9, 2021

What is Net Revenue Retention? In this article, we’ll take an in-depth look at what Net Revenue Retention is, why it matters and the multiple approaches you can take to improve it. Net Revenue Retention (NRR) is a SaaS metric that calculates the percentage of revenue retained from existing customers over a specific period of time.

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Retention Revenue Software Review SaaS 98

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.

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Churn Underperforming Technical Team SaaS Payments Payment Solutions 98

User Pilot

DECEMBER 19, 2023

SaaS account management. With the emergence of software-as-a-service (SaaS) companies, the role of account managers has also evolved – and gotten harder. In this article, we will go over the responsibilities of a SaaS account manager and share tried-and-true strategies they can implement to drive product growth.

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SaaS Payments Management Customer Lifetime Value SaaS 103