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

SaaStr

MAY 12, 2023

So SaaS Capital put out its latest report on SaaS retention and NRR after having surveyed over 1,500 SaaS companies and professionals. We tend to intuitively think annual contracts help combat churn, but they really don’t — they just defer it. You can download it here. This data confirms that.

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Startup SaaS Retention Churn 305

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

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. Lose a $100k customer?

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Churn Metrics Customer Success Investment 231

The SaaS CFO

FEBRUARY 22, 2023

We know churn is bad for our SaaS company. 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. Yes, we are losing customers and revenue.

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Churn SaaS Metrics Revenue 59

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 92

For Entrepreneurs with David Skok

JANUARY 3, 2018

In working with a number of SaaS portfolio companies, I have found that there are two causes of churn that occur more frequently than any others. They are: Failure to successfully onboard the customer Loss of the champion who drove the purchase Looking at these in order: Failure to successfully onboard It’s easy to understand.

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Churn Onboarding SaaS Retention 269

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 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

Tom Tunguz

JULY 12, 2019

In Rethinking Customer Churn Rate & LTV/CAC , Thibaud Clement illuminates a counter-intuitive concept about churn. The faster you increase your growth rate (acceleration rate), the higher the churn rate. In the 50% scenario, churn will be 67% higher. In the 50% scenario, churn will be 67% higher.

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Churn Startup SaaS Scaling 223

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. It probably couldn’t last.

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SMB Churn Enterprise Engineering 213

SaaStr

JUNE 2, 2021

Q: What are some tricks software companies use to manipulate churn metrics? Churn” is a surprisingly imprecise term. Some ways saas companies “manipulate” churn, which may be 100% legitimate in some cases: Not counting churn until after 90 days. If a customer churns in a week, why count them? Every quarter.

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Churn Metrics Software Enterprise 229

SaaStr

FEBRUARY 17, 2024

Dear SaaStr: When Is It Too Soon to Target Enterprise Customers in SaaS? They’ll churn or at least, never fully deploy. More here: Secrets to Closing Your First 6 Figure Deal (Video + Transcript) | SaaStr View original question on quora The post Dear SaaStr: When Is It Too Soon to Target Enterprise Customers in SaaS?

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Enterprise SaaS Churn 227

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 298

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

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 172

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 268

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 108

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. The main reasons for customer churn are: Bad product-customer fit. How to track and identify potential churn issues: Measure customer satisfaction across the user journey.

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Churn SaaS Payments Payment Solutions Payments 95

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 279

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. Want to learn how Userpilot can help you improve your SaaS valuation?

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SaaS Customer Lifetime Value Acquisition Metrics 103

User Pilot

JUNE 22, 2023

Wondering how to reduce churn rate and increase retention? While customer churn is a grave concern, retention is what can help you tackle it and make your product successful. So, efforts to simultaneously reduce churn rate and increase retention are the formula to your product’s success. What is customer churn?

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Churn Retention Onboarding Engagement 96

SaaStr

APRIL 1, 2024

Dear SaaStr: Funding Aside, What Are The Top 3 Things That Stop SaaS Companies From Growing From ~$25k MRR to ~$250k MRR? So … You WILL get to $3m in ARR ($250k MRR) from $300k ARR … as long as: you have truly happy customers (they can’t churn), keep hustling to get more of them (you found a way to get some already) and you don’t quit.

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SaaS Churn Metrics Growth Marketing 238

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 254

SaaStr

APRIL 1, 2020

Downgrades are not churn. It may be time to segment your “churn” into lost customers vs. downgrades. In a recurring revenue model, a customer that churns is a customer you never really had at all. And in SaaS, it’s really only the future that matters. __. And A Downgrade is Not Churn.

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Churn Pricing Retention Branding 261

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. Revenue churn = money lost.

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Churn Payments Revenue SaaS Payments 105

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 235

Sage Intacct

NOVEMBER 3, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business.

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Churn Finance SaaS Data 64

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

APRIL 22, 2024

In SaaS, it’s advised to follow customer success best practices to ensure that users achieve their desired outcomes with your product and become loyal advocates for your brand. 17 customer success best practices you can apply in any SaaS include: Tailoring the onboarding experience using customer data to increase retention and success.

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Customer Success Retention Software Review Customer Lifetime Value 74

CloseSaaS

OCTOBER 4, 2022

Churn measures the ultimate failure in SaaS—all of the customers who tried out your product and decided it isn’t worth paying for.

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Churn SaaS Metrics Sales 52

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

Natalia Luneva

JANUARY 13, 2021

Existing customer renewal is a high priority for 59% of SaaS companies and a medium priority for 27%. This article will answer the main questions that SaaS founders and market ers have about losing SaaS customers, in other words, user churn: What is SaaS churn definition and why lowering it matt ers?

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SaaS Payments Payment Methods Churn Payment Services 105

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

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SaaS Payments Finance Churn Payment Services 52

OPEXEngine

NOVEMBER 8, 2022

Usually, customer churn rate is every SaaS company’s worst enemy. But in this article, we’re going to show you how to not only deal with churn effectively but also how you can use your customer churn data as a valuable tool to build your business. Voluntary churn vs. involuntary churn: What’s the difference?

SaaS Payments 52

SaaS Payments Finance Churn Payment Services 52

Cobloom

JUNE 1, 2021

Struggling to keep your SaaS company's churn rates down? Think that there's more you could be doing to approach the much revered negative churn? In this article I run through 5 of the most common sales & marketing mistakes we see SaaS companies making. Where upsells outpace lost customers).

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Churn Customer Lifetime Value SaaS Marketing 92