Subscription Flow

APRIL 23, 2024

In this blog, we will be looking at Paddle vs Chargebee vs SubscriptionFlow to bring you up to speed on their latest features in 2024, so you can pick the software that serves as the best fit for your subscription-based business. Doing this ensures the data-driven reduction of churn.

Payment Solutions 93

Payment Solutions Payments Payment Services SaaS Payments 93

Totango

FEBRUARY 9, 2024

Similarly, to be successful, an enterprise needs to be able to prevent churn and increase revenue growth. In football terms, gross retention, or gross revenue retention (GRR), is like the defense, determined to block any attempts by the opposing team (churn) to breach your end zone (revenue stream). Calculate it!

Retention 108

Retention Underperforming Technical Team Software Review Churn 108

Cobloom

JUNE 18, 2019

Churn is a really big deal in SaaS. Customer churn, or revenue churn? but which is a "bigger" deal? Today, I'm looking at the differences between these two essential SaaS metrics , and helping you to use them to monitor and improve the growth of your own SaaS startup.

Churn 46

Churn Revenue Startup Metrics 46

SaaStr

NOVEMBER 27, 2021

If this is your first SaaS company, you may not have ever hired or built a Customer Success team. Look for someone that really was a “Customer Success Manager” or “Client Success Manager” on their LinkedIn, that you believe in, and that worked somewhere < $10m ARR, and you’ll be in the zone.

Sales Hiring 244

Sales Hiring Customer Success Scale Customer Lifetime Value 244

SaaStr

APRIL 1, 2020

And even where it isn’t, there are at least big pockets of customers under severe stress. This is a Customer Satisfaction lesson we should all take away from Slack’s early hyper-growth and Stewart Butterfield. Your top customers will grow with you. Downgrades are not churn. And A Downgrade is Not Churn.

Churn 261

Churn Pricing Retention Branding 261

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.

Churn 90

Churn Retention Benchmarks Customer Lifetime Value 90

SaaStr

AUGUST 20, 2021

The higher the churn, the lower your CAC needs to be to survive. The cash-flow positive one has 130% NRR from SMBs and has several years of existing customers to renew. Projected revenue? Including — or not including — customers also acquired for free, in your CAC measurement. Close the customers now.

Scale 279

Scale Churn Metrics Startup 279

SaaStr

FEBRUARY 9, 2024

It is often the first point of interaction between potential customers and your company. Given this, you must understand the role that each facet of the business plays in promoting that product, from marketing and sales to customer service. The first role that comes to mind is driving revenue and it’s probably within sales.

Scale 251

Scale Sales Hiring Sales Marketing 251

SaaStr

JUNE 14, 2023

They’re only growing revenue 7-8%, but they are relatively efficient, with 13% adjusted EBIDTA margins. Transaction Revenue Has Slowed, But Subscriptions Are Up. LegalZoom has pushed more and more customers to subscribe to its legal services vs. just purchasing one-off products like incorporation. #5.

Subscription 169

Subscription Payment Features Churn Retention 169

SaaStr

FEBRUARY 17, 2021

Ah, who should Customer Success report to? So usually, she can easily also manage Customer Success as well as all her reps. And Sales and Customer Success are of course connected. Better alignment with VPS owning an ARR/MRR goal vs. just bookings goal. Sales is just the very beginning of a 5-10 year customer journey.

Customer Success 272

Customer Success Scale Churn Finance 272

Clouded Judgement

DECEMBER 21, 2023

this quarter vs 0.1% Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

NOVEMBER 4, 2021

In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. 2 drivers stood out as notable: Customer Acquisition Cost (CAC) and Churn. After all, 31% + 29% = 60%.

SaaS 255

SaaS Technical Review Benchmarks Azure 255

SaaStr

APRIL 4, 2023

You’ll probably have a smaller lifetime customer value and customer budget for acquisition. Smaller deals often mean approaching people one-to-many vs. one-to-one. You’ll be able to spend more because the lifetime customer value could be in the millions. Are you seeking lots of small deals?

Scale 220

Scale Strategy Scaling Outbound Sales Team 220

SaaStr

JANUARY 12, 2024

Is it the end of an era for customer success in SaaS? We just wrote up how some of the biggest changes of SaaS are now coming, specifically in Customer Success and Sales. Customer Success Is Vulnerable to Cuts Jason shared that he didn’t realize how vulnerable customer success was to cuts until 2023. Let’s dive in.

Sales Hiring 239

Sales Hiring Customer Success Scale AI 239

User Pilot

MARCH 14, 2024

Looking for customer analytics use cases that can significantly improve your SaaS? This article lists key use cases for SaaS and explains how to implement them to unlock customer satisfaction and product growth. We also cover: Customer analytics categories. The three types of customer analytics and their significance.

Customer Lifetime Value 103

Customer Lifetime Value SaaS Underperforming Technical Team Retention 103

FastSpring

APRIL 23, 2024

FastSpring includes global payment processing and recurring revenue management, of course, but the platform also takes care of the end-to-end checkout process, including optimization of your checkout flow, collecting and remitting sales tax and VAT, localization, fraud prevention, global compliance, and more. Revenue metrics and analytics.

Payment Services 78

Payment Services Payment Methods Merchant Services Payment Solutions 78

SaaStr

JANUARY 12, 2021

Xero is a very interesting SaaS case study with (x) the majority of its revenue outside the U.S., Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Churn is 1.1% Xero’s SMB churn isn’t zero. So nail a niche!! And the U.K.

Customer Lifetime Value 212

Customer Lifetime Value SMB Churn Scale 212

SaaStr

DECEMBER 29, 2019

Salesforce likes to talk about “Customers for Life”, and while that’s sort of catchy, it’s a little hard to grok what it really means. At EchoSign, now Adobe Sign, there’s a large group of well-known customers that I closed, Back in The Day … that now have been customers for 10 years.

Scale 344

Scale Churn Construction SMB 344

SaaStr

JANUARY 28, 2023

Dear SaaSt: Do sales commission clawbacks typically apply after a customer’s payment has cleared (e.g. This is an issue that will worry you a lot in the early days — and that later, at least help make sure sales doesn’t pursue churn-and-burn deals too aggressively. Ah, clawbacks. But it won’t really matter.

Payments 215

Payments Payment Services Sales Finance 215

SaaStr

NOVEMBER 27, 2021

If this is your first SaaS company, you may not have ever hired or built a Customer Success team. Look for someone that really was a “Customer Success Manager” or “Client Success Manager” on their LinkedIn, that you believe in, and that worked somewhere < $10m ARR, and you’ll be in the zone.

Sales Hiring 187

Sales Hiring Customer Success Scale Customer Lifetime Value 187

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 172

Churn Customer Success Subscription Payment Features 172

Clouded Judgement

SEPTEMBER 12, 2023

Extra pressures around optimizations still exist, however gross churn levels have stabilized, and commentary on earnings calls suggest conversations around new bookings are starting to pick up. We will see this show up in revenue figures in a quarter or two. this quarter vs 0.3% last quarter.

Cloud 169

Cloud Software Benchmarks Retention 169

User Pilot

NOVEMBER 24, 2023

Which one is better, customer acquisition vs retention? This article will examine customer acquisition and retention and determine which one you should focus on. TL;DR Customer acquisition attracts and converts new customers through marketing and sales efforts to expand the customer base and drive revenue growth.

Acquisition 101

Acquisition Retention Customer Lifetime Value Churn 101

SaaStr

AUGUST 7, 2023

ARR stands for Annualized Recurring Revenue, although its real-world definition has evolved over time. As you’ll learn further down in this article, ARR now means any type of software-related revenue with 100%+ Net Revenue Retention (NRR), even if it’s not truly recurring. The only thing that mattered was revenue.

Metrics 183

Metrics SaaS Sales Hiring Finance 183

SaaStr

JUNE 8, 2022

100k+ customers are now the engine, not self-serve SMBs. These 2,900+ customers are growing 46% year-over-year. This trend had started several years ago, but even in 2021, 63% of revenue was from 10 seat or smaller customers. 5 Interesting Learnings: #1. That doesn’t look to be the case going forward. #2.

SMB 269

SMB Enterprise Engineering Scale 269

SaaStr

JANUARY 24, 2022

Was it misunderstanding bookings vs. ARR vs. GAAP revenue, was that the issue? With early revenue, you start thinking about churn and scalability of every aspect of the business, including product, infrastructure, customer support, sales and marketing. Mistake #1: Bookings are not revenue.

Finance 323

Finance Outsourcing Services Systems Review Technical Review 323

User Pilot

FEBRUARY 28, 2024

Building a customer path is a crucial step in getting a deeper understanding of user behavior. That’s because effective product engagement is only possible when you have enough context on the customer’s journey and can visualize the ways users interact with your software. How do you track each stage of your customer path?

Customer Lifetime Value 101

Customer Lifetime Value SaaS Software Review Acquisition 101

Clouded Judgement

MARCH 10, 2023

What’s interesting is all of these companies (if I recall correctly) had very strong new customer adds. The challenge is existing customers ramping slower. What excites me is the strength of these platforms are reflected in new customer adds and stable gross churn. Overall Stats: Overall Median: 5.8x

Cloud 244

Cloud Trends Subscription Payment Features 244

SaaStr

JANUARY 17, 2023

Sales-led vs. product-led is a hot topic right now, and Jason Eubanks, Chief Revenue Officer of Harness, shares the answer during this week’s Workshop Wednesday — held every Wednesday at 10 a.m. Everything is defined by customer interactions, from how they find Harness to becoming a customer. Increase revenue.

Startup 217

Startup Sales Sales Funnel Education 217

SaaStr

AUGUST 12, 2020

You need to back into what you are solving for: Is your churn material? If it’s close to zero by logo, and negative based on cohort revenue (i.e. you have net negative churn), multi-year contracts are worth less. It may be worth it later if your churn is high. Five is a stretch.). Are your renewals a lot of work?

Churn 173

Churn Revenue SaaS Sales 173

SaaStr

MAY 25, 2022

Sales-assisted sales now at $165m ARR, and growing 35% (vs 14% overall and just 7% for self-serv). If Momentive / SurveyMonkey had stayed 100% self-serve and low end, it likely wouldn’t be growing much at all, with self-serve revenue now only growing 7%. 91%+ of customers pay annually. Talk about a long tail!

Scale 230

Scale Payments Payment Solutions Payment Services 230

User Pilot

AUGUST 9, 2023

Wondering how to calculate customer retention rate and why? It’s important to measure the customer retention rate to see how well your product retains customers and to monitor any changes to try and improve it. TL;DR Customer retention rate measures the percentage of customers a company keeps over a specific timeframe.

Retention 98

Retention Customer Lifetime Value Churn Metrics 98

SaaStr

FEBRUARY 15, 2022

if Churn > 2% = Bad, Just Terrible. And even in the enterprise, losing one big customer can swamp you here in the early days. What most matters is that churn is going down , rather than the core absolute value, IMHO. And can’t customer support just do some of this at least? Well — Maybe.

Scale 241

Scale Customer Success Sales Hiring Scaling 241

SaaStr

MARCH 31, 2021

Revenue grew nicely at first from $1m to $3.5m Customer count growing 33%, revenue growing 65% — the “Golden Ratio” for future growth. UiPath grew from 6,009 customers last year to 7,968 at January 2021, or 33% growth. Fast, but revenue grew much faster (65%). 2014: $500k rev. seed round.

Outsourcing Services 360

Outsourcing Services Outsourced Development Payment Features Cloud 360

SaaStr

OCTOBER 17, 2023

Customer success is all about outcomes. If you’ve raised venture capital, you know net revenue retention is important. What does NRR have to do with customer success? Anyone looking to grow their customer success team, or rather, drive growth and NRR, will have some valuable takeaways. Get more new customers.

Scale 164

Scale Sales Hiring Customer Success Scaling 164

SaaStr

APRIL 14, 2023

Mistake #2: Labeling The Value Prop Too Soon Founders at this stage often don’t know enough about their customers to define the value prop, so don’t be so quick to nail it down and say, “This is what our value prop is.” Walk with customers to the very end of the customer journey to see what’s working and what isn’t.

Development Team Review 211

Development Team Review Technical Review Underperforming Technical Team SMB 211

SaaStr

SEPTEMBER 6, 2021

Q: Who Should Our First Head of Customer Success Report To? Ah, who should Customer Success report to. So usually, she can easily also manage Customer Success as well as all her reps. Better alignment with VPS owning an ARR/MRR goal vs. just bookings goal. A VPS wants to close more revenue. It’s not super simple.

Customer Success 228

Customer Success Sales Hiring Finance Churn 228