SaaStr

MAY 22, 2024

And … 92% of its revenue is from subscriptions. Today, Gartner has now crossed $6 Billion in revenue, with a stunning $35 Billion market cap. About $1m Quotas for 5,000 Sales Reps Gartner is split into two divisions, and interestingly, both have quotas of about $1m per rep. #2. Gartner’s research does. #4.

Revenue 219

Revenue Enterprise Cloud Pricing 219

Totango

JUNE 8, 2022

Recurring revenue models have taken over the world. OK, maybe not the world, but they have become an increasingly important factor these days for helping SaaS companies understand whether their products and services are keeping customers engaged and delivering value, so they can prevent churn, increase expansion and earn higher valuations.

Scale 88

Scale Scaling Revenue Customer Success 88

SaaStr

FEBRUARY 15, 2022

E.g., Sales +Marketing Expenses < First Year ACV = Success ? But maybe not while you are scaling, you can often afford to invest more if you have funding. if Churn > 2% = Bad, Just Terrible. What most matters is that churn is going down , rather than the core absolute value, IMHO. Well — Maybe.

Scale 251

Scale Customer Success Sales Hiring Scaling 251

SaaStr

FEBRUARY 24, 2023

They initially double their ARR each year in scaling post $10M. Although churn and down-sell rates are relatively consistent during growth, this ability to capture new logos consistently can help to avoid client concentration in a volatile market. How do the best-in-class companies perform when ARR is treated as a growth metric?

Scale 219

Scale Sales Hiring Scaling Venture Capital 219

SaaStr

MAY 20, 2024

Almost every founder regrets using capital to keep a high-burn rate engine going that isn’t scaling rapidly. #2. Not Jumping on High Churn Some types of churn certainly can be addressed over time. But if your churn and retention numbers aren’t at least mid-pack for your category, don’t let it lurk.

Trends 290

Trends Scale Sales Hiring Venture Capital 290

SaaStr

JANUARY 5, 2022

So far in FY2022, 62% of our total revenue came from customers with more than one Box product, up from 57% in FY2021. Every customer-facing team is on the renewals team: customer success, sales, product, customer support, marketing, and of course, renewals. Improvements for a sales team and process are a ‘no finish line’ business.

Scale 269

Scale Scaling Sales Hiring Software Review 269

User Pilot

NOVEMBER 5, 2023

Wondering how to scale customer success in SaaS and drive product growth ? If you’re a leading SaaS company, you know that growth is directly tied to helping customers achieve their desired outcomes. An effective customer success team can, thus, drive revenue growth, reduce churn, and increase customer satisfaction.

Scale 104

Scale Customer Success Scaling SaaS 104

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. On top of that, churn and expansion tend to be quite predictable with low volatility. Why do software companies get “credit” simply for revenue?

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

JANUARY 24, 2019

As you scale your salesteam, unless you are very careful whom you hire and how you train them, incentives being what they are in variable compensation, some negative behavior will creep in. Prospects will be … if not lied to … then told half truths. Many call it “Churn and Burn” or other variants. Train your reps.

Scale 223

Scale Churn Sales Hiring Sales 223

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 244

SMB Scale Banking Enterprise 244

SaaStr

FEBRUARY 28, 2022

A few ideas on how to help the sales team make this your best year so far: Hire dedicated sales / revenue ops. Many of you will have little to no dedicated help in sales operations , even up to $10m ARR or beyond. Getting routing the right leads? This will take some of the pressure off the sales team.

Scale 246

Scale Sales Hiring Sales Enterprise 246

SaaStr

JULY 26, 2022

Don’t need as much sales experience on sales team. 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. And then 3% a month churn cuts your growth in half.

SMB 360

SMB Churn Payment Services SaaS 360

ChurnZero

JANUARY 26, 2022

Reducing churn is at the forefront of all marketers’ minds. 82% of marketers say that “active customer retention” is one of the most important objectives for their CRM team , leading many Marketing and Customer Success team members to seek out new ways to understand customer pain points and improve the customer experience.

Scale 52

Scale Churn Scaling Retention 52

SaaStr

AUGUST 13, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: 5 Top Tips to Drive Down Churn in The Early Days 5 Interesting Learnings from Atlassian at $3.2 SaaStr 681: Scaling to $5B with Cockroach Labs’ CEO Spencer Kimball’s Formula for Sustained Growth and Resilience   3.

Scale 244

Scale Churn Scaling Metrics 244

Sixteen Ventures

MARCH 9, 2024

While traditional approaches often relied on revenue-based customer segmentation, leading to inconsistent experiences and inefficiencies, AX prioritizes individual needs […] The post Beyond Touch Levels: Scaling Customer Success through Appropriate Experience (AX) appeared first on Customer-centric Growth by Lincoln Murphy.

Scale 64

Scale Customer Success Scaling Revenue 64

SaaStr

DECEMBER 27, 2023

Digital Ocean is only growing 16% now at $700m ARR, and churn is up and NRR down. But it’s raining cash, and earnings per share is growing 22% — faster than revenue. Or at least, maybe like many, tougher times meant holding the line on costs and people, leading to even more efficiency. Churn Stable.

Scale 238

Scale AWS Azure Cloud 238

SaaStr

APRIL 24, 2022

Don’t Hire a VP of Sales Everybody Loves. SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. Revenue Marketing: Build for Scale with Podium’s SVP, Revenue Marketing Jess Weimer. The Private Equity Math of 1+1=3 in SaaS Acquisitions.

Sales Hiring 275

Sales Hiring Revenue Scale SMB 275

SaaStr

MARCH 12, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long (Updated) The 8 Signs of a Failing Sales Rep. SaaStr 639: Scaling a SaaS Sales Team While Building Culture with Figma VP of Sales Scott Pugh    4.

Scale 208

Scale SMB Sales Scaling 208

SaaStr

JANUARY 23, 2024

Dear SaaStr: Does it get easier or harder to scale SaaS as your company grows? Generally, it gets easier to grow at a “good”/modest rate at you scale, but harder to grow at an outsize rate. And that brand generates leads organically, and fairly low-cost leads. At least, you have a mini-brand in your niche.

Scale 207

Scale Sales Recruiting Scaling Branding 207

SaaStr

SEPTEMBER 9, 2022

Back in the day, premium comp for some software sales execs made simple and easy sense. Traditional software had 90% gross margins, and the classic enterprise sales reps, the best ones, could close a million or more dollars a year. Sales reps in low NRR and high churn environments got paid almost the same as enterprise reps.

Scale 322

Scale Venture Capital Sales Hiring Sales 322

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.

Churn 98

Churn Payments SaaS Payments Payment Solutions 98

Payrix

MAY 14, 2024

No one knows this better (or more intimately) than a software company Chief Revenue Officer (CRO). Adam Tesan, CRO at Worldpay for Platforms, is a seasoned executive leader with decades of experience in sales, marketing, and revenue in the software space. And so that was a big conversation at the board level.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

SaaStr

NOVEMBER 2, 2021

A little while back, I caught up with a great VP of Sales that had been using Adobe Sign / EchoSign for 11 (!) ” 11 years x $80,000 a year = $880,000 CLTV from that first sale. Let’s call that at least a 2x multiplier in Second Order Revenue. Yes, this customer churned after 11 years. If we hadn’t?

Scale 293

Scale Churn Retention Acquisition 293

SaaStr

NOVEMBER 8, 2022

Why did sales-driven Qualtrics get to $100m+ in ARR without ever raising a nickel, and generating more than $20m a year in free cash flow ? Sales, done right, should be accretive (although expect sales efficiency to ultimately decline post-Initial Scale). In fact, great sales teams are accretive. Why was Netsuite?

Scale 278

Scale SaaS Banking AWS 278

SaaStr

APRIL 26, 2023

Self-serve products can and should be quite profitable at scale. Only 32% of Revenue From Websites. The majority of its revenue comes from ecommerce. Their pure website revenue, which they call “Presence”, is just 32% of their revenue. #2. 28% of their revenue from outside the U.S.

Scale 238

Scale SMB Churn Pricing 238

Totango

SEPTEMBER 22, 2023

We believe these collaborations are cornerstones for enterprises to deliver seamless experiences for their customers and to create the interconnectedness with cross-functional partners and systems needed to drive long-term revenue growth.

Enterprise 114

Enterprise Revenue Scale Innovation 114

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. Try Userpilot and Take Your Customer Satisfaction to the Next Level Get a Demo 14 Day Trial No Credit Card Required What is customer churn?

Churn 52

Churn Retention Software Review Metrics 52

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 222

Retention Revenue Startup Sales Hiring 222

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.

Churn 105

Churn Machine Learning Artificial Intelligence Data Analysis 105

Intercom, Inc.

JULY 11, 2019

If you’re a leader, he says, don’t try to scale your job. Since 2010, he’s helped the company grow to more than 40,000 customers and helped scale the support team to more than 500 employees to assist those users. Here are five quick takeaways: Most sales and support teams talk about their jobs as a funnel. Short on time?

Scale 188

Scale Scaling Sales Hiring Underperforming Technical Team 188

Intercom, Inc.

DECEMBER 5, 2019

On this week’s episode of Scale, Matt Rogers, Head of SaaS Initiative at Google, is here to enlighten us. Over the course of his conversation with Amanda Connolly, Matt covers the challenges faced by SaaS companies both starting out and scaling in today’s swiftly evolving market. Another great use case?

Scale 118

Scale Scaling Artificial Intelligence Business 118

SaaStr

MARCH 26, 2024

So when I started writing venture checks in 2013, I didn’t know what I was doing, but I had a strong start: First was Pipedrive co-leading seed, then acquired for $1.5B cash Second was Algolia leading U.S. If revenue was overstated a bit. Billion cash Fifth was Logikcull, acquired for $300m cash So it was a good start.

Investment 286

Investment Scale Churn SaaS 286

SaaStr

MARCH 20, 2024

They discuss Sam’s learnings at Founders Fund, what the 2024 playbook looks like, hiring and motivating sales teams, and a handful of audience questions. On the sales side, people hired way too much. More salespeople do not equal more sales. Sam just finished 18 months at Founders Fund after joining in mid-to-late 2022.

Sales Hiring 264

Sales Hiring Sales Recruiting Scale Headcount 264

SaaStr

NOVEMBER 24, 2021

The SaaS sales model seems so well-established, as hundreds of founders build their businesses and raise funding. However, even the savviest entrepreneurs might be unaware of some of the blind spots that could be costing revenue. . Pothole #1 – Legacy Sales Commission Plans May Yield Low License Utilization.

Sales Hiring 201

Sales Hiring Scale Compensation Sales 201

SaaStr

JANUARY 4, 2023

A nice sweet spot for a mix of inside and outside sales. #3. Very Few Professional Services — Only 3% of Revenues. ProServ is only 3% of Okta’s revenues. International Revenue Steady at 22% of Revenues — and EMEA is strong. Customer Count Up 22%, While Revenues Up 37%. It only grew 4.5%

Scale 288

Scale Headcount Sales Hiring SMB 288

SaaStr

NOVEMBER 21, 2020

How to hire a great VP of Sales (tons on that here ). What a great VP of sales really does. But as I now work with 24+ scaling SaaS companies, all of whom, all of us, who struggle to build a great management team … I’ve learned to distill it all down to one thing. About recruiting and helping you scale.

Sales Hiring 356

Sales Hiring Scale Sales Recruiting Engineering 356