TechEmpower SaaS

JULY 31, 2023

How does it meet customers’ needs? One way to approach that last question is to use this simple model: Customer Acquisition Cost (CAC) How will your business reach prospects? And how much will it cost to win them? Customer Lifetime Value (CLV) How much money will your business generate from each converted customer?

Metrics 390

Metrics Startup Scale New CTO 390

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. They’d spend two years building a piece of software, put it on a CD-ROM that costs $.50, That’s the easiest thing because the customers already know you. 50, and package it up for another $.50 You never catch up.

Engineering 237

Engineering Business Model Pricing Scaling 237

SaaStr

JANUARY 27, 2024

Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS? Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. Another 5%-7% go to core infrastructure costs (AWS, Azure, Snowflake, etc). Happy customers beget more happy customers.

Azure 212

Azure AWS SaaS Customer Success 212

Clouded Judgement

MARCH 22, 2024

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Customers sign contracts with annual increments (one, two, three, etc year deals), and the spend is predictable across the course of the contract.

AI 183

AI Revenue Cloud Technical Advisors 183

Payrix

APRIL 24, 2024

Part 2 – Selling payments to net new customers and your existing software user base. Part 3 – How value-added services contribute to the payments experience for customers. Andy suggests that there is an immediate and discernible value-add for software companies to embed payments as a means for retention of SaaS revenue.

Payments 147

Payments Embedded Payments Merchant Services Payment Solutions 147

SaaStr

AUGUST 7, 2023

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. CAC stands for Customer Acquisition Costs and measures how much it costs to buy a new customer. If you grow 50%, add at least 25% new customers.

Metrics 184

Metrics SaaS Sales Hiring Finance 184

Clouded Judgement

APRIL 11, 2024

net retention and CAC payback). I’m calculating FCF by taking the Operating Cash Flow and subtracting CapEx and Capitalized Software Costs. The reason I love this metric is because it really demonstrates how much customers love your product. Is Software Rebounding? Who are the real AI winners.

Cloud 177

Cloud Software Azure AWS 177

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. We still want to drive retention and growth and make money. With the number of layoffs, customer success was the highest. The world has changed.

Sales Hiring 239

Sales Hiring Customer Success Scale AI 239

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 97

Acquisition Retention Customer Lifetime Value Churn 97

Tom Tunguz

AUGUST 26, 2020

At the time of IPO, Asana and Smartsheet had the same number of customers, about 75,000. Each seat costs $118 per year or $9.83 The cost of higher growth appears in the Net Income Margin delta. Net Dollar Retention. Examining SaaS ratios, we see Asana charts lesser net dollar retention than SmartSheet. SmartSheet.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

Clouded Judgement

DECEMBER 1, 2023

There were also quite a few questions around cost and compliance. On the cost piece - there were a number of folks who made statements like “we can’t roll out this chatbot / CoPilot to our entire user base becasue our costs would explode! This year, there was tons of experimentation.

AWS 293

AWS Cloud AI Search Cost optimization & reporting 293

Tom Tunguz

SEPTEMBER 19, 2021

Net Dollar Retention. Large Customer NDR. Average Customer Value, $k. Customer Count. This fabulously high gross margin results from many customers hosting their own GitLab suites. This fabulously high gross margin results from many customers hosting their own GitLab suites. The sales efficiency of 0.67

Metrics 299

Metrics Outsourced Development Scale Cloud 299

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 97

Customer Lifetime Value SaaS Software Review Acquisition 97

User Pilot

FEBRUARY 26, 2024

Digital product metrics reveal how customers interact with your product. TL;DR Digital product metrics are KPIs that measure customer interactions with your product and their effect on your business. Digital product metrics are indicators that show how customers interact with your product and how they affect your business.

Metrics 93

Metrics Customer Lifetime Value Scale SaaS 93

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 100

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 100

Intercom, Inc.

OCTOBER 7, 2020

In the not-too-distant past, customer support was seen as a hassle, a cost that had to be borne but which was really just a tax on success. If it wasn’t for those pesky customers with problems, profits would be through the roof, right? There is no escaping the fact that supporting your customers costs money.

Customer Support 196

Customer Support Investment Scale Retention 196

User Pilot

MARCH 25, 2024

It uses revenue and operating costs to determine the 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.

SaaS 97

SaaS Customer Lifetime Value Acquisition Metrics 97

SmartKarrot

JANUARY 20, 2021

These metrics include Annual Recurring Revenue (ARR), Customer Lifetime Value (CLV), Customer Acquisition Cost (CAC) and Churn. But one of the metrics which is often overlooked, yet stands at par with above metrics, is Customer Retention Cost (CRC). Customer retention doesn’t just come naturally.

Retention 11

Retention Customer Lifetime Value Technical Review Software Review 11

User Pilot

MARCH 7, 2024

Free tools offer basic functionalities but are limited in different aspects like customizations, technical support , and integrations with other apps. Paid tools come at a significant cost but offer more advanced features, dedicated support, and more app integrations. Userpilot is the product growth platform for user journey analytics.

Social Media 102

Social Media AI Search Mobile AI 102

Intercom, Inc.

AUGUST 23, 2022

Customer retention has never been more critical to business success than it is today. With increasing business costs and reduced headcount, companies are feeling the squeeze as they also grapple with rising consumer expectations. That’s why companies should look to support – and retain – the customers they have.

Customer Support 211

Customer Support Retention Headcount Customer Lifetime Value 211

User Pilot

DECEMBER 23, 2023

New user retention is essential for product success. It also explores: The difference between retention and churn The importance of tracking retention Various stages of user retention How to measure it effectively What retention metrics to track, and Tried and tested strategies to increase user retention.

Retention 91

Retention Customer Lifetime Value Social Media Churn 91

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. The higher the retention rate, the better. What is customer retention rate?

Retention 97

Retention Customer Lifetime Value Churn Metrics 97

User Pilot

OCTOBER 24, 2023

TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). Usage-based pricing could use tiers, units, volumes, or impact as its basis for subscription cost. Higher customer satisfaction. Better retention rates.

Pricing 99

Pricing Payment Solutions SaaS Payments Payments 99

Totango

APRIL 4, 2024

If you asked your customer success (CS) and sales leaders this question, what do you think each of them would say? Revenue retention hinges on the collaborative efforts of CS and sales teams as they collectively shepherd customers throughout the lifecycle journey, from acquisition to retention and expansion.

Customer Success 89

Customer Success Retention Revenue Sales 89

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 98

Customer Lifetime Value SaaS Underperforming Technical Team Retention 98

User Pilot

MARCH 17, 2024

The 10 analytics dashboard examples include web, digital marketing, business insights, social media, product usage, customer journey , user behavior , user retention, knowledge base , and Net Promoter Score analytics dashboards. Userpilot is the best tool for predesigned and custom dashboard visualization.

Social Media 90

Social Media Data SaaS Scale 90

User Pilot

MARCH 6, 2024

TL;DR The product funnel is a framework outlining the stages of the customer journey , starting from its discovery and ideally leading to customer loyalty and advocacy. Product funnel is a wider concept, focusing on the whole customer journey, while marketing and sales funnels concentrate on its early stages.

Social Media 90

Social Media Sales Funnel Acquisition Retention 90

Subscription Flow

APRIL 18, 2024

In such a scenario, what subscription-based businesses like these dating apps usually do is they redirect their energies into improving their customer lifetime value by reworking their customer engagement model. These include discerning the frequency of usage and the details provided by customers during feedback.

Engagement 94

Engagement Customer Lifetime Value Revenue Subscription 94

User Pilot

DECEMBER 10, 2023

TL;DR Product-led growth (PLG) uses product usage as the main driver of customer acquisition and account expansion. PLG is cost-efficient and promotes retention and long-term growth. However, it’s not ideal for complex products or enterprise clients where customers aren’t the end users. Book the demo to see how!

Scale 101

Scale Sales Software Review Retention 101

Totango

NOVEMBER 15, 2023

Totango’s customer success software drives cross-functional enterprise teams toward enhanced productivity, retention, and growth. The best of customer success At Totango, we know just how important it is for customers to receive not only a high-quality product but one that has been thoroughly vetted by their peers.

Customer Success 112

Customer Success Software Review Technical Review Enterprise 112

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. In this article, we’ll share 17 best practices that you can implement today to increase retention , revenue, and engagement. But what strategies work?

Customer Success 79

Customer Success Retention Software Review Customer Lifetime Value 79

User Pilot

APRIL 24, 2024

But when things don’t work out, we are reminded of the importance of eating your own dog food, aka using your own product to solve the problem you set out to address for your customers. It enables you to collect customer feedback in-app, analyze user behavior using multiple reports, and conduct product experiments.

Interviewing 89

Interviewing B2C B2B Advertising 89

Chargebee

DECEMBER 23, 2023

Customer acquisition costs have skyrocketed by 222%. Brands are bleeding nearly $30 for every new customer. The key to successfully navigating challenging business waters lies in customer retention. Astoundingly, a mere 5% increase in retention can cause profits to soar by 25% or more.

Retention 52

Retention Acquisition Branding Business 52

Blulogix

JANUARY 23, 2024

Inefficiencies in this area can cause revenue loss, diminish customer satisfaction, and inflate operational expenses. Here’s how BluIQ contributes to ROI: Automatio n Reduces Operational Costs BluIQ automates key billing processes, such as invoicing, payment processing, and revenue recognition.

Payment Features 52

Payment Features Payment Services Payments Subscription 52

Totango

JANUARY 22, 2024

We polled our Customer Advisory Board (CAB) at the end of last year to gauge which way they saw the pendulum shifting for CS in 2024. At the intersection of product, customer, and business insights, CS is uniquely positioned to steer businesses through these changing environments. Retention is the new acquisition.

Customer Success 94

Customer Success Generative AI AI Scale 94

User Pilot

AUGUST 16, 2023

Without retaining users , you’re throwing away money and resources spent acquiring customers that’s why having a retention playbook is helpful. A user retention playbook will keep your customers happy and continue using your product for longer. Build relationships with your customers by building an online community.

Retention 98

Retention Social Media Customer Lifetime Value Churn 98