Clouded Judgement

JANUARY 19, 2024

It starts with understanding what type of profile is attractive to public market investors, and I hope the weekly data I share helps give folks an understanding for what these types of metrics are. One thing I do want to call out that I don’t see tracked enough is stock compensation.

Cloud 184

Cloud Scale Compensation Metrics 184

ProfitWell

NOVEMBER 13, 2019

But you can get a more representative picture of your progress by reducing the number of metrics you observe. The trick is identifying a smaller set of metrics that really tell the story of your business and making them your key performance indicators, or KPIs. Why subscription companies need to track KPIs. SaaS Bookings.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

User Pilot

AUGUST 31, 2023

New customers bring in subscription fees, licensing charges, or usage-based payments, which are the lifeblood of SaaS businesses. Conversion The conversion stage is where potential customers make the decision to upgrade from a trial or freemium account to a paid subscription. The key metrics to track include CAC, LTV, and ARPU.

Acquisition 110

Acquisition SaaS Payments Payment Methods Metrics 110

Totango

AUGUST 13, 2024

” Customer renewals are the lifeblood of any subscription-based business, directly impacting your company’s revenue, growth, and long-term success. By implementing CSQOs into your compensation plan, you empower your CS team to drive expansion, while maintaining their focus on customer success and retention.

Customer Success 101

Customer Success Compensation Management Consulting 101

Software Platform Consulting

MAY 6, 2019

There are many great articles about SaaS metrics on the web (e.g., There are also great resources for metrics specific to marketplaces (see here ). Invoicing and payment (e.g., SaaS Metrics Unique to Enterprise-Driven B2B Networks. This post and subsequent ones will cover four metrics: Buyer-Supplier Revenue Mix.

Payments 60

Payments Enterprise SaaS Payments Metrics 60

Software Platform Consulting

MAY 28, 2019

This is the third in my series on SaaS Metrics for Enterprise-Driven B2B Networks. I spend very little time on issues of compensation on this blog. Often, as with P2P, payments, Order to Cash, and EDI networks, there may be a significant time lag between: the bookings or cash—if any—coming from one side, and. Source: [link].

SaaS Payments 56

SaaS Payments Enterprise B2B Metrics 56

OpenView Labs

FEBRUARY 9, 2021

But growing with a usage-model is not as straightforward as traditional subscription SaaS. It requires shifts in go-to-market strategy, sales compensation, financial planning, billing, and much more. Some folks might have feared that investors would hate usage-based pricing because customers aren’t locked into a subscription.

Scale 98

Scale Pricing Scaling AWS 98

SaaStr

OCTOBER 29, 2019

SaaS is about creating long-term value for your customer, and being compensated appropriately for that value as a business. This is a mobile solution for SMB’s to send an invoice and get paid. Are we being compensated appropriately for that value? Your sticks are your value metrics. Join us at SaaStr Annual 2020.

Payments 110

Payments Pricing Compensation Scale 110

OpenView Labs

APRIL 8, 2021

Yet pivoting from traditional subscriptions to usage-based can be just as big of a shift as making the leap from on-prem to SaaS. Even if customers are asking for usage-based pricing, some companies just don’t have a great usage metric they can use for their pricing. Pure usage-based pricing isn’t for every product.

Pricing 130

Pricing Scale Payment Features Subscription 130

OpenView Labs

SEPTEMBER 8, 2021

The complexities of pivoting from traditional seat-based subscriptions to usage-based pricing are analogous to making the leap from on-prem to SaaS in the first place. . New Relic has even taken this a step further where sales compensation is now 100% consumption-based , a notable change from their previous compensation structure.

Customer Success 97

Customer Success Pricing Scale Compensation 97

Tom Tunguz

JULY 14, 2015

Bloomberg, provider of the eponymous financial information terminals, generates roughly $10B annually in subscription revenues, and is wildly profitable. And many of the business’ key metrics are exposed for the first time. I don’t mean to imply that there aren’t terrifically well run private companies.

Compensation 113

Compensation Finance Forecasting Communication 113

Neil Patel

JUNE 15, 2021

While there are other strategies for tracking your analytics on Medium, the platform offers metrics to help you track your content’s performance. You can view your metrics by clicking your profile picture and then “Stats.” ” From there, you can access a ton of metrics that could provide insight into your content.

Payments 144

Payments Payment Methods Advertising Payment Services 144

Buffer Resources

FEBRUARY 15, 2024

The program is part of a broader effort by TikTok to enhance monetization opportunities , including other avenues such as LIVE Gifts and subscriptions , TikTok Series , and TikTok Pulse. per 1,000 views, the Creativity Program aims to rectify this by offering enhanced compensation, potentially reaching up to $8.00

Payments 123

Payments Payment Services Payment Solutions Payment Methods 123

Chaotic Flow

APRIL 14, 2015

SaaS colleagues come to me with a wide variety of problems from positioning to sales compensation to churn analysis, but lately I’ve noticed a common theme: poor SaaS customer alignment. Each new customer brings a new thread of subscription revenue that is woven into a larger tapestry to form the total recurring revenue of a SaaS business.

Scale 156

Scale SaaS Compensation Churn 156

SaaStr

MARCH 31, 2022

million subscriptions transacted and Google’s marketplace has seen 3X growth in SaaS sales. We aligned with finance, with sales operations, as well as the sales leaders to say, here are some impacts that a cloud marketplace could have on our business and what would your metrics or successful outcomes be? Rico Mallozzi: Yeah.

Scale 259

Scale Marketplace as a Service Cloud SaaS Payments 259

Valuize Consulting

AUGUST 24, 2021

Mobilize Your Team Around Your Most Pressing Value Metric. Net Dollar Retention (NDR) has quickly become the most important value metric in SaaS organizations and for good reason; NDR provides a clear picture of a company’s overall health and valuation. Build Your Compensation Model. 5 Steps To Aligning Your Teams Around NDR.

Retention 52

Retention Metrics Compensation Innovation 52

Valuize Consulting

AUGUST 24, 2021

Mobilize Your Team Around Your Most Pressing Value Metric. Net Dollar Retention (NDR) has quickly become the most important value metric in SaaS organizations and for good reason; NDR provides a clear picture of a company’s overall health and valuation. Build Your Compensation Model. 5 Steps To Aligning Your Teams Around NDR.

Retention 52

Retention Metrics Compensation Innovation 52

Buffer Resources

OCTOBER 16, 2023

Meta Creator Compensation for AI Chatbots Meta is investing heavily in creators , with a whopping $5 million deal for a top creator’s contribution to AI chatbots. Prepare for possible changes in engagement metrics and how it may affect your content strategy.

Social Media 124

Social Media Payments AI Search AI 124

Baremetrics

AUGUST 11, 2021

Revenue recognition, as per GAAP, states that payment is recognized as revenue after delivering the product or service in its entirety. In the SaaS industry, subscription fees are paid as monthly recurring revenue (MRR) and can be paid in advance for up to a year. Of course, that’s not how SaaS revenue works. (We

Payment Methods 59

Payment Methods SaaS Payments Payment Features Payment Services 59

SaaStr

JULY 25, 2021

What do you look for as CEO, as the key metrics when you are to measure like how is your sales organization doing other than the top line numbers? So one of the things that I think is a very telling metric is sales productivity. And so it’s really important because that’s a very telling metric. Dev Ittycheria : Yes.

Sales Recruiting 261

Sales Recruiting Sales Hiring Scale VP of Engineering 261

Chart Mogul

JANUARY 9, 2025

Metrics and KPIs Set clear goals like conversion rates, time-to-close, and average deal size to measure success and identify areas to improve. In your calculations, consider not only how many new customers you need to reach revenue goals but also how many of those customers are likely to stay on board and ideally expand their subscription.

Scale 52

Scale Sales Hiring Startup Sales Recruiting 52

OpenView Labs

MARCH 16, 2021

But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS. SaaS companies exploring a usage-based model need to plan for both go-to-market and operational challenges spanning from pricing to sales compensation to billing. Selecting the right usage metric.

Pricing 69

Pricing Payments SaaS Payments Payment Solutions 69

Baremetrics

SEPTEMBER 24, 2021

Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, total customers, and more. Baremetrics integrates directly with your payment gateways, so information about your customers is automatically piped into the Baremetrics dashboards. Want to try it for yourself?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. Metrics that can affect SaaS business valuation include Monthly /Annual Recurring Revenue, Customer Acquisition Cost , Customer Lifetime Value , Net Revenue Retention, Total Addressable Market, and YoY Growth Rate. To calculate the metric, add all 4 of them.

SaaS 105

SaaS Customer Lifetime Value Acquisition Metrics 105

SaaSOptics

JANUARY 20, 2022

If your organization is using spreadsheets to manage compensation plans and account for sales commissions, you may be doing a lot of rowing without getting very far. Managing commissions and compensation plans in spreadsheets is a common practice, but it’s also inefficient and outdated. Where Are We Going and Who’s Driving the Boat?

Compensation 77

Compensation Scale Forecasting compliance 77

Clouded Judgement

JULY 21, 2023

When new products are being built and engineers are hired you’re paying those engineers compensation when the products they’re building aren’t generating any revenue (because they haven’t been built yet…). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Software Sales Hiring Scale 130

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

Kellblog

AUGUST 7, 2019

I’ve been asked about this a few times lately, less because people value my accounting knowledge [1] but rather because people are curious about the CAC impact of such deals and how to compensate sales on them. The question on my mind is how do I look at this from a new ARR bookings, ending ARR, CAC, and sales compensation perspective?

Deferred Revenue 76

Deferred Revenue Pricing Payments SaaS Payments 76

Sales Hacker

AUGUST 7, 2024

There is no longer an appetite for CS functions that lack a commercial focus and don’t own metrics such as Net Dollar Retention (NDR). What type services should be included in with a software subscription as opposed to something I charge customers for? It’s worth reflecting on how we got here.

Underperforming Technical Team 119

Underperforming Technical Team Technical Review Sales Hiring Scale 119

Baremetrics

SEPTEMBER 8, 2021

If you want to see your business metrics on an easy-to-use dashboard, sign up for the Baremetrics free trial and get started. According to this approach, to value an equity stake in a private company, an interested person looks for a similar, but publicly-traded company to compare specific financial growth metrics. Table of Contents.

Payment Methods 81

Payment Methods SaaS Payments Compensation Payment Services 81

OPEXEngine

JANUARY 11, 2022

Many companies want to migrate their subscription or perpetual business to consumption pricing models; however, it doesn’t always result in incremental business. Companies need to be able to track granular usage data and model usage patterns to support their invoicing, internal sales crediting, and forecasting. This is no small task.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

ChurnZero

JULY 2, 2021

Choosing between Net Revenue Retention (NRR) and Gross Revenue Retention (GRR) as your north-star growth metric isn’t an either-or question. SaaS companies must be cognizant of and weigh the implications brought about by a sole focus on these metrics when assessing the performance of and building strategies for Customer Success.

Retention 97

Retention Revenue Sales Hiring Churn 97

Kellblog

MARCH 13, 2020

Back in the pre-subscription era, basically all the revenue — save for a little bit of services and some maintenance that practically renewed itself — came from sales anyway. Then the subscription era came along. The first complication was expansion ARR (annual recurring revenue). New ARR is their metric.

Customer Success 98

Customer Success VP of Engineering Sales Recruiting Acquisition 98

Chargify

SEPTEMBER 10, 2019

The underlying foundation for these new capabilities starts with the ability to add/manage reps and associate them to subscriptions that run through Chargify. . Once a rep-to-subscription association is created, you have instant access to a wealth of revenue data for any given rep. Compensating Other Revenue Generators.

Payments 61

Payments SaaS Payments Scale Compensation 61

Sales Hacker

NOVEMBER 15, 2017

Annual Recurring Revenue (ARR) is the value of contracted, often subscription-based revenues normalized for one calendar year. It is called Annual Contract Value (ACV) when annualized and Average Purchase Value (APV) when the revenue derived is not subscription-based. Compensation. Challenger Sales Model. Channel Partner.

Scale 105

Scale Payment Methods Sales Recruiting SaaS Payments 105

ChurnZero

OCTOBER 5, 2021

Another one of our favorite moments was our Founder, You Mon Tsang’s well attended session on the “ Top Customer Metrics For Your Board and Investors and How to Nail Them with ChurnZero’s CEO.” Are your compensation plans setting your business up for longer-term success or subscription contraction?

Customer Success 95

Customer Success Scale Customer Lifetime Value Compensation 95