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The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. 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.

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Zoom at $4.5B in ARR: Enterprise is Growing 24%, But SMB Churn is Dragging Overall Growth Down to … 1% for 2024

SaaStr

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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Top SaaStr Content for the Week: Gorgias CEO, Postman CEO, Waze Head of SMB Sales, Klaviyo SVP Marketing, and More!

SaaStr

The Silent, Lurking Churn: Activation Rates Less Than 90%. SaaStr 527: Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre. The 4 V’s of Sales: Volume, Value, and Velocity with Waze Head of SMB Sales Fernando Belfort and Head of Sales Enablement Kendra Wrightson. Plan For It.

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Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck (Pod 647 + Video)

SaaStr

How To Capture This Global SMBTech Opportunity There is massive market opportunity to sell to SMB businesses. What It Takes To Win With small businesses, you will have more churn and business volatility than with an enterprise. Efficient Go To Market There are a lot of ways to GTM as an SMB. SMBTech is primed for growth.

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The State of Software Buying: From SMB to Enterprise with G2’s CMO

SaaStr

You’ll also want to monitor churn risk closely. Look for signs of churn and have a strategy in place to fight the trend. The post The State of Software Buying: From SMB to Enterprise with G2’s CMO appeared first on SaaStr. And finally, celebrate your customer’s ROI when using your product. Focus on your NRR > ARR.

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Customer Churn Rate: How to Calculate and Improve Churn

User Pilot

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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What Really Happened to SaaS in the ’08-’09 Recession

SaaStr

Two things though did get hit harder — SMB Churn and Upsell s. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. SMBs just plain went out of business in ’08-’09. So our gross SMB churn spiked to a crazy high of 5.5%

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