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

JULY 26, 2022

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.

SMB 357

SMB Churn Payment Services SaaS 357

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

ChurnZero

JANUARY 26, 2022

Reducing churn is at the forefront of all marketers’ minds. From a Customer Success and Marketing perspective, optimizing the customer experience might look like exploring support tickets, talking to customers, and running reports on recently churned customers to find out why. Minimized Churn Risks.

Scale 97

Scale Churn Scaling Retention 97

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 214

Retention Revenue Startup Sales Hiring 214

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. Truly insane.

SMB 228

SMB Churn Enterprise Engineering 228

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 289

Trends Scale Sales Hiring Venture Capital 289

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 80

Churn Payments SaaS Payments Payment Solutions 80

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 96

Churn Machine Learning Artificial Intelligence Data Analysis 96

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 239

SMB Scale Banking Enterprise 239

SaaStr

APRIL 24, 2022

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. Revenue Marketing: Build for Scale with Podium’s SVP, Revenue Marketing Jess Weimer. appeared first on SaaStr.

Sales Hiring 275

Sales Hiring Revenue Scale SMB 275

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 15, 2022

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. This is pretty much where most of us end up at, at scale. Well — Maybe.

Scale 249

Scale Customer Success Sales Hiring Scaling 249

SaaStr

OCTOBER 17, 2023

If you’ve raised venture capital, you know net revenue retention is important. PST — Former VP of Customer Success and current founder and Managing Partner at Success Venture Partners, John Gleeson, shares his lessons learned scaling customer success from $1M to $300M in ARR. An ability to scale through a couple of stages of growth.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

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.

Churn 88

Churn Software Review SaaS User Experience 88

SaaStr

APRIL 4, 2023

This means you can raise prices, add modules, and expand, increasing the average revenue per customer account (ARPA). If churn doesn’t grow, your lifetime customer value is at its peak. Not only did they bring in and convert more leads, but they also moved part of the customer base upmarket, increasing LTV and revenue.

Scale 232

Scale Strategy Scaling Outbound Sales Team 232

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 211

Scale Sales Hiring Scaling Venture Capital 211

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. Many call it “Churn and Burn” or other variants. Yes, the rep gets a commission and the company might book a tiny bit of revenue in the short-term.

Scale 224

Scale Churn Sales Hiring Sales 224

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. The post Reaccelerating Growth at Scale with Box’s CRO Mark Wayland (Podcast 514 + Video) appeared first on SaaStr. Enter your email below for the latest SaaStr updates. Make the move to multi-product.

Scale 265

Scale Scaling Sales Hiring Software Review 265

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. .

Churn 180

Churn Customer Success Subscription Payment Features 180

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

ChurnZero

JANUARY 26, 2022

Reducing churn is at the forefront of all marketers’ minds. From a Customer Success and Marketing perspective, optimizing the customer experience might look like exploring support tickets, talking to customers, and running reports on recently churned customers to find out why.

Scale 52

Scale Churn Scaling Retention 52

SaaStr

JANUARY 31, 2024

at that scale, with 1,900 $1m+ customers. 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. But like most other leaders today, it’s hiring more slowly than it’s growing revenue. The Big Customers Pay $4.5

Enterprise 277

Enterprise Scaling Churn Engineering 277

SaaStr

MARCH 9, 2022

During his SaaStr Annual presentation, Tom Clayton, CRO of Bill.com, shared his insights and advice for growing revenue streams to maximize business success. . Pursue Diverse Revenue Models. Sometimes, it takes innovative thinking to pull more revenue out of a current customer base or business model. The Five Key Growth Levers.

Revenue 245

Revenue Sales Hiring Leadership Scale 245

User Pilot

NOVEMBER 5, 2023

Wondering how to scale customer success in SaaS and drive product growth ? An effective customer success team can, thus, drive revenue growth, reduce churn, and increase customer satisfaction. This article discusses ten tips that can help you to effectively scale customer success teams in SaaS.

Scale 83

Scale Customer Success Scaling SaaS 83

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 232

Scale SMB Churn Pricing 232

User Pilot

MARCH 23, 2023

What are the reasons for customer churn in SaaS? However, sometimes things don’t go as planned, and customers churn. By the end of this article, you’ll have a better understanding of the common pitfalls that lead to customer churn and how to avoid them. 5: Customers churn when they experience an unresolved product bug.

SaaS Payments 90

SaaS Payments Churn Underperforming Technical Team Payment Methods 90

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. The focus of our series is that growth in scale, so your journey fits right in.

Revenue 223

Revenue Scale AI Search Customer Support 223

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. But at scale, even the slightly less long version of the tail is where the money is. Churn Stable. It’s gotten crazy good. Or at least.

Scale 232

Scale AWS Azure Cloud 232

Totango

APRIL 6, 2023

Our latest platform enhancements and solutions help you scale without needing to add headcount, and make CS a company-wide initiative that drives predictable revenue growth. The post Totango product innovations help CS drive predictable revenue growth appeared first on Best Customer Success Blog: Articles for Enterprise Growth.

Innovation 86

Innovation Scale Revenue Technical Review 86

SaaStr

NOVEMBER 9, 2019

Churn much past 3% a month IMHO is not really recurring revenue anymore. A lot of tools that sell to individuals and very small businesses do see churn around 7% a month though. You can survive in a very high churn VSB/SMB market, but your CAC has to be super low. You can always decrease churn a bit. Not really.

Scale 116

Scale Churn SMB Scaling 116

User Pilot

JULY 20, 2023

Wondering how to reduce customer churn rate for your business? In this article, we review different ways to identify potential churn and deal with it. Attrition is the bane of every subscription business; low retention rates will result in a duce and the customer lifetime value and revenue will plummet. What is customer churn?

Churn 80

Churn SaaS Payments Payment Solutions Payments 80

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. Before we get into the more complicated stuff, let’s consider the difference between earning revenue and collecting revenue. Subscription Revenue is Easier to Scale 3.

Payment Features 90

Payment Features Payments Subscription Revenue 90

SaaStr

MARCH 7, 2023

PST, to unveil the data behind effective scaling. What are companies doing today to scale efficiently? This is why there’s no one-size-fits-all advice for scaling efficiently because every company is different. It was a tough growth environment, but it feels like it’s changing in 2023. 80% of companies are slowing hiring.

Outsourcing Services 164

Outsourcing Services Scaling Venture Capital Forecasting 164

SaaStr

JULY 6, 2022

It’s scaling efficiently and impressively. At a $6 Billion revenue run ($4.5B in SaaS revenue), it’s growing an impressive 22% with fairly epic operating cash flows of 30% (more on that below). #1. Generating epic free cash flow at 30% of revenues, and $1.6B+ Billion a year in operating cash flow.

B2C 254

B2C Scaling Finance Enterprise 254