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This is where customersuccess comes in. Drata VP of CustomerSuccess Management, Wen Yao, and VP of Customer Experience, Ashley Hyman, share how to scale customersuccess from 0 to 5,000 customers. They believe CS is a fundamental building block to the success of your organization.
Most startups play defense when discussing pricing with customers. They dance between asking for too little, leaving money on the table, and asking for too much, only to lose the customer’s interest. The very best companies lead their customers in that dance. Expensify, Netsuite, New Relic, Slack follow this model.
Dear SaaStr: How Should Founders Build Their First CustomerSuccess Team? Building a CustomerSuccess (CS) team early is critical for SaaS startups. CustomerSuccess should be a single-digit hire—ideally, your first 5-10 employees should include at least one CS hire.
API-First Revenue Model Unlike the subscription-heavy models of traditional SaaS, 70-75% of Anthropic’s revenue comes from API calls through pay-per-token pricing. The key is ensuring that increased usage correlates with increased customersuccess. This requires rethinking pricing, packaging, and revenue recognition.
So we had another 2025 CustomerSuccess experience the other day. When we asked for the roadmap review the CustomerSuccess exec said Oh just go see it on our webinar later this week. At a basic level, this is what happens when CustomerSuccess becomes part of the sales org. So what happened?
So I think 2023 may mark The End of CustomerSuccess as We Knew It. The Massive Push to Efficiency As almost every public SaaS company got cash-flow positive and radically more efficient, and most startups had to stretch their dollars much further — customersuccess took a lot of the brunt. What happened? Just This Week.
CustomerSuccess has gotten worse over the past few years. The best CustomerSuccess teams are still amazing. I don’t know if they were too lazy to look up if I was a customer, didn’t care, or didn’t even have an internal system to know (despite being worth billions). But look, it’s true.
So we’ve been writing about the power of a strong, funded, dedicated customersuccess organization since the beginning of SaaStr way back in 2012. I now dread calls and Zooms with CustomerSuccess — and I’m not alone. Price increases across the board , often handled poorly. Thank you much. No Thank You.
It’s goes like this: First, who’s your largest customer? Now … On that deal … go quote twice your highest price ever. It does >not< mean rip off your customer. Improve customersuccess. 200k your new enterprise price point, not $100k. Double Your Pricing. And then.
We’ve talked on SaaStr about leaning in on CustomerSuccess as much as possible. the revenue ultimately generated or supported by CustomerSuccess) is the key to growing a SaaS business. We’ve talked about how all the Second Timers are hiring in customersuccess way early , ahead of sales, ahead of revenue.
The rise of customersuccess as a new, empowered function. Human support remained imporant, at least for paying customers. CustomerSuccess has in many cases morphed into part of the sales team. And with that, the classic role of making customers happy with humans is in retreat.
8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. You get a base number of minutes for a particular price. But now there’s been a broad shift toward usage-based pricing or seat-based pricing, or a combination of the two.
Financial Services: Mortgage & Loan Processing Help users explore mortgage options by collecting key inputs like purchase price, credit score, down payment, and property location, then presenting tailored loan choices with current rates. Pay only for what you use with transparent pass-through pricing for 3rd party integrations.
Let’s review everything your customersuccess team has to do in the absence of any customersuccess tools. Collect customer data to calculate complex formulas for tracking metrics, monitor customer health scores, and resolve support tickets while continuously trying to improve retention and expansion.
Q: Dear SaaStr: Who Should I Hire First to Get My CustomerSuccess Function Going? I don’t mean a true VP of CustomerSuccess in the early days of revenues … you’re not ready for that yet. you believe in and would trust with your hard-won customers. It’s easy — these days. Just hire a veteran.
SaaS pricing can be overwhelming when there are unlimited paths and opportunities that exist. Even though most companies acknowledge its importance, SaaS founders often choose a simplistic approach to pricing—that is, if they don’t choose to ignore it altogether. Making pricing work for your business.
Others want to innovate in every dimension and re-invent every discipline from pricing to marketing to support to customersuccess. Kustomer’s platform is a fundamental re-architecture of customer support software. At the outset, Brad also sought to change the pricing model. We wanted to be innovative.
You could spend days reading about pricing and pricing strategies in software on the web, but a lot of this content doesn’t really hit one, basic fundamental point — there is no real reason any particular piece of software should cost anything in particular. Pricing in software is really in large part relative to what.
Competition and Differentiation: Founders worry about competitors copying their product or undercutting them on price. The key here is to focus on your unique strengths—whether that’s customersuccess, product innovation, or a specific niche—and double down on them. And you should.
Slower New Customer Growth. Many B2B and SaaS leaders continue to rely on price increases and upsells for more and more of their growth. Especially if NRR is falling, not adding enough new customers eventually leads naturally to slowing growth. Even market leaders like HubSpot have seen NRR fall from 110% to 110%.
59% of you have raised prices this year. I think most of us have found our pricing is more elastic than we thought. The related question then becomes do you raise prices on existing customers — or just new customers? In the scaling phase, I vote for leaving existing customers be. #9.
It’s about fundamental organizational redesign —from pricing models (hybrid consumption/subscription) to team structures (forward-deployed engineers vs traditional CSMs) to investment priorities (94% AI spend increases among high-growth companies). vs $8.7K), and dramatically leaner operations.
Raising prices may or may not work for you. And perhaps most important, move on from mediocre customersuccess folks. You need the team sharp to retain your customers in 2025. All the best are now multi-product. And most of us regret not having gone there a bit earlier. A related post here. #6. Be thoughtful. More here.
And even in the enterprise, losing one big customer can swamp you here in the early days. One you may not have heard but it’s a good one — is Hire One CustomerSuccess Manager for every $2m in ARR. say $300-$500k in customer revenue per segment). say $300-$500k in customer revenue per segment).
A few thoughts at least: The stronger the brand, the more complex the pricing page can be. That means their prospects will be more patient with complex pricing. But your prospects may just move on if the pricing page makes it seem too … hard. Innovation is great … just often not on pricing. At least not in the early days.
They understood the actual workflow, the real pain points, and the specific language customers used. Simplified Pricing to Annual-Only Early Vanta initially offered both monthly and annual pricing options, following the standard SaaS playbook. Removing pricing complexity actually helped customers make decisions faster.
I’m talking about new pricing models: usage-based, consumption-based, value-based, output-based, and similar models that disrupt the conventional ARR-based, and seat-count approaches. Beyond their clear advantage of customer-centric pricing, these models are set to drive an AI-powered transformation across go-to-market strategies.
The more established your brand, the more complex your pricing page can be. What makes for a good pricing page? A few thoughts at least — mainly about what to copy from the big leaders, and what to maybe not copy from them: The stronger the brand, the more complex the pricing page can be. You aren’t there yet.
If you do raise prices, how about also adding more value than price increase? 2023 has become the year of not just the aggressive price increase, but the threatening renewal conversation. 2023 has become the year of not just the aggressive price increase, but the threatening renewal conversation. At least, feel better.
We’ve talked quite a bit about the pros and many cons of raising prices on existing customers on SaaStr. Our general view, and experience, is that until you are fairly mature, raising prices on existing customer isn’t worth it. They may even be incented to put up prices on existing customers.
AI-native GTM organizations are becoming capable of things that traditional teams simply cannot do: real-time personalization at scale, predictive customersuccess, dynamic pricing optimization, and automated relationship management that maintains human-level quality.
I remember the first time I tried to do the Old Price-Raise-Without-Notice tactic. But as time went on, we got a bit better at pricing ?? Just to increase Qualcomm to the same pricing everyone else had at their bracket. I canceled the price increase. Price increases on existing customers always lead to churn.
Naturally, their first customer was DoorDash and the quickly captured 95% of the gig economy market in their early days. When Lindsey joined, she inherited an already built-out self-serve/PLG model for small businesses and a mid-market and enterprise sales, customersuccess, and post-sales team.
Alignment Across Teams : Ensure alignment between sales, marketing, and customersuccess. Are customersuccess teams equipped to drive renewals and expansions? This includes contracts, pricing approvals, and any legal requirements. Are leads being handed off smoothly?
Raise prices on existing customers, Doesn’t help if you are growing quickly. Raise prices on new customers, Forces you to deliver more value. Dear SaaStr: How Do You Change the Price of Your SaaS Product Without Upsetting Existing Customers? My vote: don’t raise prices for existing customers.
This isn’t just about productivity — it’s about economic disruption : The Agent Economics: Traditional SaaS: $3,500 per employee annually across organizations AI Agents: Can replace entire job functions for <$100/month The math may be devastating for high priced seat-based pricing models 3.
Balanced Metrics : While they track traditional SaaS metrics, they also measure customersuccess indicators specific to the construction industry. Efficient Growth : Word-of-mouth in tight-knit industries reduces customer acquisition costs. This helps ensure they’re creating real value, not just growing revenue.
Build the Right Team for Enterprise Success Enterprise selling requires a fundamentally different skillset. Map out all stakeholders and their motivations early. Focus on Land-and-Expand Economics Don’t obsess over initial deal size.
.” The AI Categories with the Most Traction in the Market McKinsey found that sales and marketing teams are seeing the biggest gains with AI adoption, followed closely by engineering and customersuccess teams. So between sales and marketing, let’s dissect first why Sales teams have been early adopters.
The post GTM 94: Mastering Branding, Pricing, and CustomerSuccess for AI Startups with Holly Chen appeared first on GTMnow. Holly lives in San Francisco and speaks Italian and Chinese fluently. 46:33 – One thing that is working for Holly in go-to-market right now.
SaaStr Annual attracts thousands of high-quality SaaS professionals across functions like engineering, product, marketing, sales, and customersuccess. From customersuccess platforms to billing solutions and marketing automation tools, the exhibitors represent a curated collection of resources that can help optimize your business.
The peak moment for us was when a vendor we pay monthly for sent us a threatening email on the last days of a quarter telling us we had to now pre-pay for 4 years at a much higher annual price. Best case, unscheduled price increases were rolled out — without a commensurate increase in value. Worst case, customers were threatened.
Low touch you’re gonna talk a lot about what we call customersuccess teams. Customersuccess teams are basically about building at scale this self-serve engine. We look at annual churn, given the nature of those businesses that have annual or multi annual contracts with much bigger price items and tickets.
This inefficiency stemmed from the high costs associated with maintaining sales development representatives (SDRs), customersuccess managers (CSMs), and account executives. This decision was validated through A/B testing, which showed new traffic converting at 20 times the previous rate, despite the significantly lower price point.
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