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Both started SMB (Monday even more so), and Both have now gone more enterprise (Monday even more) But still with the vast majority of their customers SMB. Enterprise Expansion : While maintaining strong SMB growth, Monday.com has successfully moved upmarket. Their ecosystem extends their reach globally.
Selling to Multiple Stakeholders If you sell into the Enterprise, you understand there are different stakeholders. With SMBs, the smallest business is owner-operated. SMB Unit Economics: Why Is 6 Quarters the Right Target for SMBs at Scale? BILL wants to be at the heart of every SMB business. This is true for BILL.
Julie Iskow, CEO of $600m+ public SaaS leader Workiva joined Norwest Venture Partners Sean Jacobson at SaaStr Annual for a deep dive on going More Enterprise. Just look at the numbers: Enterprise customers bring 95%+ best-in-class retention vs. 85% in mid-market. Waiting too long to start their enterprise planning.
110% NRR from 157,000 SMBs Yes, it can be done, 110% NRR from SMBs. 54% Growth in $50k+ Customers Like Shopify, Klaviyo is firmly SMB overall. New Startups and Companies and Enterprise Strong. SMB Weaker. But SMBs in the middle have become more cost and price-sensitive. #10.
75% of Customers Are Onboarded By Partners Partners don’t just matter in the enterprise. HubSpot has gone upmarket over the past years, while also remaining even more SMB-focused. They recently did an Analyst day though that had some more great data that I thought was super interesting, and worth a deep dive. Sales Hub, i.e
So theres a theme Ive been working on with all the SMB-focused founders I work with and have invested in: # 1. The Goal for SMB SaaS is 100%+ NRR. Easy in enterprise, hard in true SMB. # However, SMBs have a certain level of inherent churn. And then your NRR will cross 100% with SMBs. Into an ERP.
Dear SaaStr: What Are Some Tips For Shortening Enterprise Sales Cycles? A bit more on that here : How to Cope With Long Sales Cycles But there are plenty of things that help : Hire a VP of Sales with Enterprise Experience : A great VP of Sales who’s closed deals at your price point can shave months off your sales cycle.
A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. It’s SMB. Salesforce similarly on the enterprise side has built a huge ecosystem to do the services work for them. HubSpot gets about 2.3% of its revenue from services.
It’s been around for decades but has continued to iterate, expanding into the enterprise, the contact center, and so much more. Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. Fast forward to today, it’s at: $2.43
And when it IPO’d, it was still solidly an SMB solution. Today it’s a very enterprise solution, solving much bigger problems. Leaning More into Free Even as it goes more enterprise, and see a decline in SMB / Commercial accounts, PagerDuty is still leaning in more on Free. As has PagerDuty.
SMB, mid-market, enterprise). Benchmark Your GRR : Investors will compare your GRR to industry standards: Enterprise SaaS: 90-95% Mid-market SaaS: 85-90% SMB SaaS: 80-85% Anything below these benchmarks signals potential retention issues 3. For enterprise customers, this should be closer to 12-15% 3.
Many that are self-serve and SMB-focused can start off without a sales team … for a while. But it had and has a very large channel that sells its product into the enterprise, and a lot of internal resources that support the channel. But as it went toward IPO, 50% of its revenue came from bigger, enterprise deal.
Mid-Market Is The Perfect Laboratory For Both Product and Go-To-Market Development Most founders falsely view market segmentation as a binary choice between SMB and Enterprise. Yet they close in months, not years, with substantial ACVs ($20-70K+) that support full sales motions including SDRs, AEs, and CSMs.
It’s tough to spend even $1m a year effectively on most digital spend for most categories of B2B software: Putting aside Unicorns and folks that have raised monster rounds, in my experience, most enterprise SaaS companies struggle to deploy more than $40k-$50k a month on Adwords effectively. To a point.
a Month Churn especially SMB churn remains Zoom’s biggest challenge at its mature state, but it’s been pushing customers to annual and longer contracts and more. 98% NRR from Enterprise Customers, Down from 101% a Year Ago and 115% in 2023. Average Monthly Self-Serve (“Online”) Churn Hit New Low of 2.7%
If you’re in SMB or mid-market, keep in mind that CSMs can handle more accounts because the engagement tends to be lighter. But if you’re in enterprise, where customers expect more hands-on support, you’ll need to keep the ratio lower.
At least for SMB and more routine mid-market sales. Enterprise Will Lag, But Change Still Coming Enterprise sales still generally needs a quarterback to close deals. There will be plenty of change coming in enterprise sales with AI. You can see Windsurf’s built a massive enterprise sales team overnight.
When Lindsey joined, she inherited an already built-out self-serve/PLG model for small businesses and a mid-market and enterprise sales, customer success, and post-sales team. But at the start of its expansion play, Checkr’s enterprise motion failed, and sales cycles were slow, taking up to a year for $100k & up deals.
Enterprise-focused companies with usage-based pricing bore the greatest increase at 44%. Often, a straight UBP pricing model doesn’t scale into the enterprise. This behavior is commonly observed with luxury goods, but it also manifests in SaaS sales processes, particularly for enterprise customers.
It never had a downturn, and just keeps on growing at top-tier rates, selling both to SMBs and now larger enterprises. This is what 12x ARR selling to SMBs++ looks like. This is what 12x ARR selling to SMBs++ looks like. The company is successfully evolving from its SMB roots into a serious enterprise software contender.
How to Make Onboarding Work for SMBs While in some cases, selling to SMBs is easier than Enterprise in many ways, one way in which it’s fundamentally harder is onboarding. The expansion can only come from selling SMBs new products. Mangomint doesn’t have that. And the more products they buy, the higher the NRR.
Enterprise-grade capabilities are minimal. Horizon 2: Enterprise Democratization (2027-2030) TAM: $40-300B This is where vibe coding becomes transformational rather than just convenient. Success depends on maintaining the simplicity advantage while adding enterprise capabilities. Security vulnerabilities are well-documented.
For SMB sales, quotas closer to 3x OTE are common, while enterprise sales can push closer to 5x. For example, enterprise reps might have quotas based on both ARR and the number of new logos closed. Early Growth ($1M–$10M ARR): Once you’ve hit some traction, quotas should start aligning with your sales model.
Rough quotas of $500k for SMB, $700k for mid-market, and $1m for enterprise are fairly common and good rough guidelines. For example: If your goal is adding +$1m ARR this year, and you have 2 reps, each rep’s quota might be $500K in new ACV. Make sure quotas are realistic but challenging enough to push performance.
For the better part of the last decade, it’s been broadly assumed that product-led growth (PLG) is superior to implementation-heavy enterprise software. Enterprise software companies that tackle complex workflows are regularly growing from $0 to $5 million, $10 million, or beyond $20 million in ARR in their first two years.
Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!
Net Dollar Retention >110% and GDR of >95%: The Power of Being a True Operating System ServiceTitans NRR consistently exceeds 110%, even with SMB-heavy customers. While ServiceTitan started as an SMB-focused platform, theyve steadily moved upmarket. Just above non-GAAP break-even (3% non-GAAP margins) 110% NRR and 95% GRR $10.5B
AI Speakers: CEO Snowflake + CEO Observe: Where B2B Applications Are Going CEO Box Aaron Levie: AI, Agents and The Next Era of SaaS COO Google Cloud Francis deSouza: Hyperscalers: The Future and More CTO Rubrik: Co-Founder & CTO, Arvind Nithrakashyap CTO Neo4j: Philip Rathle (Valuation $2B+): How Revolut Left Salesforce and More: Rolling Your (..)
Imagine running a complex sales call with an enterprise prospect asking about specific integrations or implementation details. This will be particularly transformative for SMB-focused businesses doing high-volume, transactional deals. This will accelerate the PLG (Product-Led Growth) trend even for complex enterprise software.
As a “prosumer” app there is overlap for SMB and freemium B2B apps. “Purchase Volume” Retention of 97%, Going Up to 105% in Q1’25 Chime doesn’t really have NRR per se, and consumers do churn at a rate much higher than enterprise. So what’s telling is how much wallet usage and share they retain.
The most common challenges associated with vertical SaaS are competing for adoption against popular legacy or traditional SaaS solutions, a smaller lead pool that may soon exhaust, and managing the expectations of consumer-like SMB customers. While enterprise software grew at 11.1% What is Vertical SaaS? through 2034.
A few ways to do it: Company Size (SMB, Mid-Market, Enterprise) : Splitting by company size almost always works once you have 2-3 sales reps hitting quota. SMBs often require a high-velocity sales motion, while enterprise deals are slower and more relationship-driven.
We Just Won’t Need as Many SMB Sales Reps. Enterprise sales may require just as many humans as ever. But 1 and 2 call closes for SMBs? We may or may not need them anymore (see next point). 2025 And The Rise of the Mech AE (Account Executive) 7. AI is already close to being able to handle these better than a human.
In the enterprise, most of ServiceNow’s revenue does. Define the Types of Partnerships You Need Enterprise partner programs typically fall into three categories: Product Partners : These are integrations that make your product better. Be API-First and Interoperable Enterprise customers expect seamless integrations.
Scott Barker: [26:53] Did you go about shifting that so how were what were some of the strategies you used to shift um how the market was perceiving you.
Are you an enterprise needing deep customization and analytics, or a small business seeking user-friendly marketing integration? Its early vision was to end software as we knew it instead delivering enterprise applications via the internet. Today, Salesforce is positioned as the enterprise CRM leader. Market share leader (21.7%
The exact playbook to move from SMB to enterpriseincluding partner enablement, segmentation, and incentive design. 85% of your customers being SMB and mid-market to at the end of that six years, it was 75%, uh, enterprise. Why retention isn’t just a CS metricand how to build a sales team that cares about it.
By BluLogix Team What Enterprises Really Need from Agile Billing—And Why Most Platforms Can’t Deliver, According to MGI Research For years, the billing software market has been flooded with tools that promise flexibility, automation, and ease of use. Most of them were built for startups, SMBs, or simple direct-to-consumer models.
Whether youre a startup , an SMB , or a global enterprise , the right ATS can streamline your recruitment process, save time, and help attract top talent in a competitive market. Lever Best ATS + CRM for Scaling Enterprises Pricing: Key Features: 10. Its tailored more to SMB use cases.
At this scale, successful CS organizations are: Building sophisticated pool models for different customer segments Creating digital-led motions that can scale efficiently Actually monetizing premium CS services Measuring and optimizing the cost to serve each customer segment The Enterprise CS Playbook No One Talks About Moving upmarket?
They came to SaaStr Annual to share what theyve learned about making the move to go more enterprise actually work. You’re winning true enterprise workloads, not just “fins” (side projects or experimental business lines that don’t represent real adoption). Thinking enterprise is just a go-to-market play.
In the SMB space, the biggest problem is onboarding for complex products. They just crossed a billion in ARR, growing 34% with 110% NRR from SMBs and 22% free cash flow. Go more Enterprise or SMB. All unstructured data to be instantly searchable. People expect to extract data from your product with a plain English prompt.
Traditionally it’s been seen as complex and costly, suitable only for large enterprise motions. With advances in AI, automation and workflow integrations, ABM will be available to even small teams going after SMB and mid-market sized deals. Mark Walker , Co-founder of RevvedUp.ai Account Based Marketing will become mainstream.
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