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Drive retention from customer support with 4 easy steps

Intercom, Inc.

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. Shifting focus to customer retention can actually be twice as powerful as customer acquisition.

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What to Do If You’re An NRR Zombie

SaaStr

They did layoffs and froze headcount. They’re at $2m-$20m ARR or so, sometimes more, aren’t losing money, and have 90%-100%+ NRR and relatively stable GRR and logo retention. That they had to get to cash-flow positive, because no more money was coming. And while many couldn’t pull it off, and will go under, a lot actually got there.

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SaaStr CEO Jason Lemkin and Amias Gerety Partner at QED on Fintech Beat (Podcast 685)

SaaStr

The magic of a SaaS model is: Very high logo retention. Net dollar retention is ideally over 120%. The public markets love this trifecta of 90% logo retention, 80% gross margins, and 120% net revenue retention. By freezing headcount for a year. And if not profitable, very positive operating margins of 20% or more.

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Top 10 Learnings from the Redpoint 2020 GTM Survey

Tom Tunguz

Marketing teams spend 5-10% of ARR on programs (non-headcount expenses), and this is pretty consistent across ARR. Net dollar retention is the most common customer success goal, used by about 37% of respondents. Logo retention is second at about 33%. This was surprisingly low. NPS is the least common at 7%.

Scale 364
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Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today

Clouded Judgement

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! For “fake” ARR, retention can vary wildly.

AI 180
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Annual Planning for Sales Organizations: Headcount, Quotas & Territories

OpenView Labs

Headcount Planning. But headcount planning is often a useful place to start because the inputs required to make decisions are the least dependent on factors outside of the sales organization. This decision will drive many of your other headcount decisions. What ratio do you want between AEs and other sales roles?

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5 Predictions about the Future of Customer Success in 2024 with Gainsight CEO Nick Mehta and SaaStr CEO Jason Lemkin

SaaStr

SaaStr CEO Jason Lemkin also wrote how Customer Success has now morphed into part of the sales team and that the 2024 trends in CS include everyone wanting to eliminate humans from support to replace that headcount with AI and bots. We still want to drive retention and growth and make money. The world has changed. Never stop,” he said.