SaaStr

MARCH 18, 2021

Another way to look at it is any vendor sort of has to ignore any market segment that is < 10% of their revenues. Many they don’t do mobile as well, or social as well, or whatever. 10+ year old platforms are powerful. But they were architected for a different age. It’s just immaterial.

Healthcare 252

Healthcare Market Segmentation Mobile Churn 252

Tom Tunguz

OCTOBER 15, 2014

In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. But, that analysis examined revenue per employee that only one point in time. It’s the fastest revenue per employee growth, recording 18.6%

Benchmarks 100

Benchmarks Revenue Scale Metrics 100

SaaStr

JANUARY 10, 2024

Strong growth, break-even margins, and very high quality revenue. Many see the “mid-market” as the toughest market segment to win in. That’s 10x ARR, even in today’s tougher environment and a world of 6x multiples even for many of the best in SaaS. 5 Interesting Learnings: #1. Not Procore.

Scale 192

Scale Payment Services Payment Features Construction 192

SaaStr

JANUARY 2, 2021

The #1 biggest mistake I see from $1m to $10m ARR is chasing new market segments, new categories, new areas where you have 0 or almost no traction. Put proportionate effort into your customer segments. Break your customers into say Small, Medium and Larger segments. Align your marketing budgets. You did it.

Sales Hiring 288

Sales Hiring Headcount Pricing Market Segmentation 288

SaaStr

JULY 18, 2021

2 “Secrets to Aligning Marketing and Revenue Strategies with Marqeta’s CMO” A great session with Marqeta’s CEO, who previously helped run marketing at Mulesoft. A great look back at how Chime built its brand, where it struggled, the market segment it wanted to win, and how it scaled. #7.

Scale 260

Scale Finance Market Segmentation Enterprise 260

ProfitWell

SEPTEMBER 30, 2019

Revenue is good. Lots of revenue is great. Optimized revenue is better. Because the world of e-commerce is so restless, as soon as your company finds itself bringing in steady revenue, the first question anyone will be asking is: How can we make this performance even better ? What is revenue optimization?

Revenue 40

Revenue Pricing Outsourcing Services Merchant Services 40

SaaStr

MARCH 25, 2021

Shopify is #1 in so many market segments, but for “bigger” SMBs BigCommerce (and perhaps less-custom enterprise deployments) is arguably #2 to Shopify. It’s much smaller than Shopify, at $170m ARR vs $3B+ ARR, but it’s still plenty big for us to learn a lot from this big but not #1 player in the market.

Outsourcing Services 199

Outsourcing Services Payments Merchant Services SaaS Payments 199

Navint

APRIL 3, 2019

There is a correlation between business performance and the maturity of your recurring revenue business, but correlation doesn’t always turn out the way you would expect. We’ve developed a Recurring Revenue Maturity Curve that we use to help clients navigate these potential pitfalls and enable recurring revenue growth.

Revenue 45

Revenue Scale Compensation Innovation 45

SaaStr

MARCH 30, 2021

This is the stage where even a few percentage points improvement will drive massive revenue gains. Win rates should go down as you scale, and push into new market segments. Win rates in fact should go down as you do more marketing. Now also — think about the opposite. A high win rate feels good, and sounds good.

Scale 275

Scale Market Segmentation Leadership Engineering 275

SaaStr

MARCH 8, 2020

2 often has a better product, at least for some market segments. #2 Just revenue growth. It simplifies things and makes it easier to rally sales, product and marketing. #2 And that does maximize short-term revenue. But, #2 can win with just a 30% better product than #1, if #2 is already a leader and in the game.

Innovation 244

Innovation Market Segmentation Pricing Branding 244

SaaStr

JULY 6, 2020

60+ NPS, 130%+ net revenue retention, however you measure it is special. If yours is, invest more there and worry a little less about pressure to do new things, new market segments, etc. Truly beloved products win. Invest more there. Double down there. You can screw up a lot of other things. Most products are not beloved.

Part-Time VPE 238

Part-Time VPE Scale Market Segmentation Finance 238

Totango

NOVEMBER 15, 2023

New partnerships with Jasper, Higher Logic , and ESG Success, new product features, and nine new integrations, including Pendo , Google and Outlook Calendar, and Gong, show our commitment to accelerating enterprise revenue growth. Learn more about specific partnerships and integrations in our recent announcement.

Customer Success 112

Customer Success Software Review Technical Review Enterprise 112

Baremetrics

MAY 26, 2021

That's the size of the company, annual revenue, number of employees, market share, etc. Geographic: Sometimes, this is a subset of the demographic segment. Value-based: This segment is grouped by the economic value the group seeks. Needs-based: This grouping is defined by each segment's particular needs.

Social Media 105

Social Media Market Segmentation B2C Churn 105

SaaStr

JANUARY 28, 2022

Here are three things that helped 6sense reach this mark and beyond: Defining their revenue operating model by hiring for RevOps and not taking the common DevOps and SalesOps approach. This model worked backward into pipeline quotas which defined how much revenue they needed to create every week, month, and quarter.

Scale 165

Scale Sales Hiring Scaling Sales Recruiting 165

User Pilot

NOVEMBER 24, 2023

TL;DR Customer acquisition attracts and converts new customers through marketing and sales efforts to expand the customer base and drive revenue growth. Businesses can establish a foothold in new market segments by effectively targeting and acquiring new customers and creating initial traction for their new products.

Acquisition 105

Acquisition Retention Customer Lifetime Value Churn 105

SaaStr

AUGUST 25, 2023

Every day, a founder doing millions or tens of millions in revenue says they can’t afford something that is ROI positive. With the high margins, recurring revenue, and upsell opportunities we have in Saas, you’ll never see a great VP of any role not be accretive. That’s usually a market condition. Our market is too small.”

Part-Time VPE 168

Part-Time VPE Scale Sales Hiring CTO Hire 168

Tom Tunguz

APRIL 24, 2017

The story behind Fleetmatics and Geotab illustrates the way two companies pursued the SMB logistics market in radically different ways, but built roughly similar sized businesses. Based in Massachussetts, the company generated $320M in revenue in 2016. Geotab addresses the same market as Fleetmatics.

Sales Hiring 186

Sales Hiring Strategy Venture Capital Marketing 186

yoursales

JUNE 2, 2023

It involves projecting future deals, sales volumes, analyzing customer demand, and predicting revenue streams within a given timeframe. By leveraging a blend of data analysis, market intelligence, and sales expertise, sales forecasting provides valuable insights into the future trajectory of a company’s sales efforts.

Forecasting 86

Forecasting Sales Sales Funnel B2B 86

Sales Hacker

FEBRUARY 15, 2024

Strategies for Differentiating Your Approach Data Segmentation Data segmentation, or market segmentation, separates customers and prospects into different groups so they receive messages that are most relevant to them. Consider company size and revenue, use case, and whether they already use a similar product.

AI Search 90

AI Search Social Media AI Sales Funnel 90

SaaStr

OCTOBER 6, 2019

” This is when you compete aggressively not only in the market segments where you have a big competitive advantage, and usually win (which usually has a much cheaper CAC) … but to win big, you also use your $20m, $40m, etc. Referrals and second-order revenue are working. We have a mini-brand, and then a brand.

Sales Hiring 219

Sales Hiring Scale Sales Venture Capital 219

User Pilot

JULY 30, 2023

You should put more focus on acquisition than retention when you’re launching new features /products or aiming to expand your customer base, or when the market share or churn rate is low. Customer retention requires more focus when you have high churn rates , high acquisition costs, and a business model reliant on recurring revenue.

Acquisition 98

Acquisition Retention Customer Lifetime Value User Experience 98

OpenView Labs

NOVEMBER 11, 2020

But first: What is a market segmentation frame, and how do you develop one? A market segmentation puts your prospects and customers into different buckets so that you can make choices in the product you offer, how you communicate, the pricing model and who you target. Market segmentation is the foundation of good pricing.

Pricing 73

Pricing Marketing Market Segmentation Communication 73

User Pilot

OCTOBER 26, 2023

TL;DR Growth initiatives are strategies aimed at expanding a company’s customer base, market share, revenue, or profitability. Market Development involves selling existing products to new markets. Market Penetration focuses on selling more existing products within the current market.

Acquisition 105

Acquisition Scale Onboarding Marketplace as a Service 105

Sales Hacker

NOVEMBER 22, 2021

The Sequence Specialist runs through a second round of approvals by SDR managers for each market segment, all team leads, and the VP of Business Development. They can hit the ground running with dozens of sequences tailored to market segment, industry, and persona. The Sequence Specialist writes the content.

Scale 99

Scale Technical Review Sales Systems Review 99

SaaSOptics

AUGUST 11, 2022

A merger or acquisition can be used to flesh out product offerings, reach new market segments, or take advantage of market opportunities that require the capabilities of a partner company to capitalize on. Right now, SaaS founders need to stay organized and agile until the bear market lets up.

Scale 97

Scale Scaling Technical Review Venture Capital 97

ProfitWell

JANUARY 30, 2020

Not only does it define your early monetization strategy, but it also heavily influences what market segments you’re likely to appeal to directly and how your product will be perceived. How can you chase those affluent, upper-market segments without making yourself off-limits to those lower on the willingness-to-pay chain?

Pricing 52

Pricing Payments SaaS Payments Market Segmentation 52

Tom Tunguz

FEBRUARY 9, 2017

When a startup disqualifies a customer, they turn away a revenue opportunity, a chance to add $1k of MRR or $3k of MRR, and meaningfully grow the top line. But if the customer isn’t the right customer, that incremental revenue bears a hidden cost. Imagine a startup at $15k in MRR. Imagine a startup at $15k in MRR.

Sales 100

Sales Compensation Market Segmentation Startup 100

Tom Tunguz

SEPTEMBER 16, 2015

Increased competition in a market segment drives up marketing costs, reduces sales win percentage and decreases sales efficiency. After this analysis, I compared a few other key metrics including revenue, revenue growth, net income, sales & marketing spend as a percentage of revenue. Revenue 0.28.

SaaS 100

SaaS Sales Market Segmentation Startup 100

Tom Tunguz

AUGUST 19, 2012

The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy. Charts 3 & 4: The 4 market segments by revenue.

Marketing 100

Marketing Sales SaaS Market Segmentation 100

Tom Tunguz

AUGUST 19, 2012

The first step in developing a sales strategy is to build a robust market segmentation. I’ve used data from the US Census to develop a segmentation that reveals some surprising facts about the SMB market and may help inform your startup’s sales strategy. Charts 3 & 4: The 4 market segments by revenue.

Marketing 100

Marketing Sales SaaS Market Segmentation 100

Sales Hacker

MAY 6, 2021

From B2C consumer-focused tech to the next B2B enterprise cloud giants, B2B, and B2C technology companies are springing up left and right and sprinting toward multi-billion dollar valuations (whether on the private or public markets) faster than ever. What’s the difference between a VP of Sales and a Chief Revenue Officer (CRO)?

VP of Engineering 93

VP of Engineering Sales Hiring Sales Recruiting Sales 93

SaaStr

JUNE 15, 2022

No dominant market segment. While Sprout Social is going more upmarket per the prior point, no one segment dominates it — allowing them to span from $89/month customers to big ones like Salesforce. #5. Sales and Marketing are 39% of revenue. Not going massively enterprise, but enough to move the needle. #4.

Scale 54

Scale SMB Market Segmentation Scaling 54

Sixteen Ventures

JULY 17, 2020

In line with my experience, Bessemer Venture Partners says an “acceptable” SaaS churn rate is in the 5 – 7% range ANNUALLY , depending upon whether you measure customers or revenue. His goal is to double his business over the next 12 months… to 2x their current revenue. Is 5% Monthly Churn Good?

Churn 133

Churn SaaS B2C Pricing 133

Sales Hacker

JANUARY 16, 2018

Market Segmentation combined with tailored messaging. The key to achieving explosive growth is to start by identifying your Ideal Customer Profiles (ICPs) via segmentation, reaching out to them with personalized targeted messaging while building a scalable and repeatable process. Evaluate the attractiveness of each segment.

Scale 84

Scale Sales Hiring Payment Services Payment Methods 84

OpenView Labs

JANUARY 12, 2021

In fact, in Q4 the public companies in OpenView’s PLG Index were trading for a 19x revenue multiple , or a 45% premium compared to the broader SaaS index. 93% of their revenue is consumption-based—and they even allow customers to roll over some unused capacity into future contracts. It did the opposite.

Pricing 53

Pricing Scale Outsourced Development Market Segmentation 53

Tom Tunguz

SEPTEMBER 13, 2015

They trade a more narrow customer base and consequent reduction in market size for a competitive advantage in that market segment. A smaller target customer base may reward vertical SaaS companies with superior sales and marketing efficiencies. A spectacularly efficient business, Veeva raised only $4.5M

Startup 102

Startup SaaS Underperforming Technical Team Marketing 102

Baremetrics

APRIL 30, 2021

Examples of Behavioral Segmentation How Baremetrics Can Help with Behavioral Segmentation Analysis. What is Behavioral Segmentation? Behavioral segmentation is one of four types of marketing segmentation. It examines consumers' decision-making processes and shopping activity.

Social Media 105

Social Media Sales Funnel Market Segmentation Subscription 105