6 Important Things Founders Get Wrong In Their Core Metrics

SaaStr

SaaS metrics can be more confusing than one might think. What if some of the revenue doesn’t recur? My SaaS Metrics Primer: * ARR always = 12x MRR. Look, ARR and MRR aren’t really GAAP metrics. At least a Flash update with top-line metrics.

The InsightSquared Revenue Intelligence Platform

InsightSquared

Why Revenue Intelligence? Everything you thought you knew about managing your revenue operations was stamped with a giant question mark. From Dashboards to an Integrated, 6-in-1 Revenue Intelligence Platform. Why Now?

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Foolproof Marketing Metrics to Measure

InsightSquared

Below are a few tips I’ve learned to ensure I’m tracking meaningful metrics throughout the customer lifecycle and I can confidently say which marketing programs are driving real business for my organization’s bottom line. . Have a North Star Metric. As marketers, we often default to defining marketing’s top-of-funnel success with a metric that we could track with simple web tracking and marketing automation rules. Make sure to have your one north star metric.

5 Keys to a Revenue Intelligence Platform

InsightSquared

That’s what makes the momentum surrounding the InsightSquared Revenue Intelligence Platform —featuring six integrated solutions in 1—so powerful. Let’s dive into a few of the key features that are must-haves in any Revenue Intelligence Platform.

The Revenue Leader's Guide to Prospecting

Speaker: Christopher Ryan, Founder and CEO of Fusion Marketing Partners

Sales & Marketing departments that work together guarantee higher acquisition, better nurturing, and more effective sales. Join Christopher Ryan for this insightful webinar, presenting the wide funnel lead nurturing model. Don't miss out on this opportunity to get your teams working together and your revenue performance optimized.

The Monthly Recurring Revenue Guide for 2021

Chart Mogul

Monthly recurring revenue is one of the least exciting topics to take on in 2020. And if you still feel some questions remain unanswered, you can always reach us at marketing@chartmogul.com or on our Twitter account to ask your burning question about MRR or anything SaaS metrics-related.

Key Revenue Metrics for SaaS companies

The Angel VC

When I talk to SaaS startups and take a look at their metrics, it still happens quite often that some of the numbers aren’t quite clear to me and it takes some time to clarify things. I’m not referring to sophisticated reports or analyses but to the much more mundane question of what exactly people mean when they use a term like “revenues”. That said, I believe most SaaS companies can focus on a small number of revenue metrics which aren’t overly complicated.

Is revenue operations just another word for sales operations?

InsightSquared

During a recent analysis of the available “operations” jobs on LinkedIn, we discovered a significant number of “revenue operations” jobs — 59,110 to be exact. It sparked the question, “Is revenue operations just another word for sales operations, or are the roles fundamentally different?”. We spoke to several operations professionals to help us better define revenue ops, and understand how the role fits into an organization relative to sales ops.

How to Build a 100-Day Plan to Grow Revenue

InsightSquared

If you improve the conversion rate during each key moment in your sales process by just a small percentage, you can end up doubling your revenue or more. But how do you know what key moments or metrics to focus on? In the past, we’ve discussed three key measurements: Volume based metrics (the change in amount at any given stage i.e. # of leads). But how do you determine which moment and which metric to drive this quarter? Have any of my metrics changed over time?

SaaS Metrics Refresher #2: Recurring Revenue

Chart Mogul

Welcome to the second installment of our SaaS Metrics Refresher course. This week we'll get back to basics with recurring revenue. Recurring revenue is the heart of every subscription business, and a key reason for the explosion of SaaS as a business model in recent years. In short, recurring revenue is all about predictable, long-term value — it’s in these characteristics where non-recurring revenue can fall short. SaaS Metrics 2.0:

The North Star Playbook

Every product needs a North Star. In this guide, we will show you the metrics product managers need to tie product improvements to revenue impact. If you are looking for a more-focused, less-reactive way to work, this guide is for you.

SaaS Metrics 101

OPEXEngine

Here’s a shout out to Dave Kellogg’s Key SaaS Metrics podcast, recently released on Aznaur Midov’s SaaShimi series. Dave does a terrific job explaining the current state of the art on important SaaS metrics. The podcast is an excellent SaaS Metrics 101 listen even for experienced SaaS finance experts. As he says in the podcast, he started writing about SaaS metrics because the best way to really understand things is to write about them – I second that!

Bookings vs Invoicing vs Revenue | The SaaS Revenue Cycle Explained

The SaaS CFO

The SaaS revenue cycle all starts with bookings. And how does a booking differ from invoicing and revenue? SaaS is full of metrics, but in this case, we are mixing SaaS and accounting terminology to make things even more confusing. Bookings Revenue bookings invoicing

Recurring revenue: drive business growth with simple metrics

ProfitWell

Recurring revenue is the lifeblood of subscription companies, and for good reason. Finally, recurring revenue gives the company a sense of predictable revenue and compounding growth. Implementing a recurring revenue model requires enabling a data-driven process and understanding the axes through which SaaS metrics impact your business. What is recurring revenue? Recurring revenue is revenue continuously brought in by customers who are on a subscription.

SaaS Metrics Refresher #7: Revenue Recognition

Chart Mogul

In this week's lesson, we're tackling the tricky process of converting bookings into revenue — also known as revenue recognition. Repeat after me: cash is not revenue! There are a set of rules and guidelines focused around how businesses calculate and recognize revenue, and if you report earnings to investors or other business stakeholders, they’ll want to see this. Revenue recognition is a critical piece of accounting for any business.

Best Practices for a Marketing Database Cleanse

As frustrating as contact and account data management can be, this is still your database – a massive asset to your organization, even if it is rife with holes and inaccurate information. Entrusting a vendor to help maintain its accuracy and completeness is no ordinary engagement. Download ZoomInfo’s latest data-driven eBook aimed to help marketing leaders understand the best practices around choosing a B2B contact data provider.

Grow Something That Matters. Even If It Isn’t Revenue.

SaaStr

Some of you won’t be able to grow revenue at all for now. Grow something that matters, so that when we pull out of this, you’ll grow revenue again, and maybe even faster than before. What can you grow besides revenue? You may be able to grow them a lot faster right now, even if the revenue lags. You can grow some metric in your pipeline or at least your pre-pipeline 2x right now. Even if revenue will lag. __. Even If It Isn’t Revenue.

How to Build a 100-Day Play to Grow Revenue

InsightSquared

If you improve the conversion rate during each key moment in your sales process by just a small percentage, you can end up doubling your revenue or more. But how do you know what key moments or metrics to focus on? In the past, we’ve discussed three key measurements: Volume based metrics (the change in amount at any given stage i.e. # of leads). But how do you determine which moment and which metric to drive this quarter? Have any of my metrics changed over time?

The Metrics-driven SaaS Business

Chaotic Flow

My first serious lesson in the criticality of SaaS metrics was about six years ago when I was unexpectedly stumped in a board of directors meeting. My first reaction was something like: “Well our current booking rate is pretty strong and we’re a SaaS business, so even with no immediate improvement to bookings we’ll continue to pile up revenue quarter after quarter, right?” Today we are witnessing the emergence of The Metrics-driven SaaS Business. The SaaS Metrics Mandate.

How to Measure Churn: Net Revenue Retention vs. Gross Revenue Retention

OPEXEngine

If your startup is a SaaS (or any other business with customers paying on a recurring subscription basis), churn is a critical metric – particularly net revenue churn and gross revenue churn – that will need constant measurement. Without a clear picture of your churn rates, it’s impossible to know how your departing customers are affecting your monthly revenue and growth. What is revenue retention? Net Revenue Retention Rate. Gross Revenue Retention Rate.

How to Package and Price Embedded Analytics

Practical Frameworks to Monetize Embedded Analytics Table of Contents Embedding Analytics to Lift Value and Revenue. 21 Get On the Embedded Analytics Revenue Escalator.23 However, the added value of embedded analytics doesn’t always translate to increased sales revenue.

Revenue Growth: Understanding & Calculating Revenue Growth

ProfitWell

Revenue growth might well be the king of all SaaS metric monsters, the Godzilla of the balance sheet. And what works for the beast from the deep works for revenue growth: to master it, you must first understand it. Though you can calculate revenue growth with a simple formula, found below, that’s only half the battle. What is revenue growth? Revenue growth is the increase, or decrease, in a company’s sales between two periods. The revenue growth formula.

A Step by Step Guide to Revenue Growth with Mark Roberge (Video + Transcript)

SaaStr

He provides an in-depth guide to driving revenue growth at your company and what to expect at each stage. Awesome revenue growth on the X axis, awesome revenue retention on the Y. Hundred percent revenue retention, 200% revenue growth. Option A is we can go have awesome revenue retention, 100% revenue retention, but mediocre growth. Thirty, 50% revenue growth. Option B is awesome revenue growth, 200%, but mediocre revenue retention, 70%.

Bookings vs Billings vs Revenue: Simplifying the Top-Line SaaS Metrics

Chargebee

Or it could have been, but you’ve just been given the task of preparing a revenue report. And terms like ‘collections’ and ‘recurring revenue’ only add to the confusion It’s a regular Tuesday. There’s a plethora of jargon and definitions. Suddenly, terms like ‘bookings’ and ‘billings’ start sounding the same.

The SaaS Metrics Maturity Model

Chaotic Flow

Becoming a Metrics-driven SaaS Business is no easy task. However, the financial rewards of moving beyond standard SaaS financial metrics to SaaS customer success metrics and ultimately to sophisticated predictive analytics are significant. Each step toward SaaS metrics greatness builds upon the last. The last two posts discussed the potential uses of SaaS customer success metrics for reducing churn and accelerating customer acquisition.

Preparing for SaaS Funding: Evaluating your Funding Options

Speaker: Jon Steinberg, Co-founder of Mountside Ventures, and Clayton Whitfield, Co-Founder and SVP of Revenue Programs at SaaSOptics

While it may seem that more and more SaaS companies are taking the bootstrap approach to financing, it’s encouraging to know that there are many other viable funding options on the market. Whether you fall into the category of “non-VC compatible,” or just prefer a more non-dilutive option, understanding what alternatives there are and how to evaluate them based on your business and operational goals will pave the way to a successful financing outcome that’ll help scale your business.

CLTV: Important. But Not the North Star Metric It Used To Be.

SaaStr

In B2C and high-churn environments, it’s indeed a critical metric. But in SaaS, in the earlier days, we inherited a lot of our lingo and metrics from B2C web services. They were earlier to mass-scale recurring revenue services on the web than B2B was. So we used their core metrics like “Churn” and “Lifetime value”. We’ve moved on in SaaS from CLTV being a core north star metric. We’ve learned: Net revenue retention probably matters more.

The Playbook To Re-Igniting Growth with Predictable Revenue Co-Founder and CEO Aaron Ross (Video + Transcript)

SaaStr

Now, how many people here have read Predictable Revenue? ” But okay, if there’s not enough sales roles, it’s … people still have muddy lead generation metrics. First, you get product market fit, then you create predictable revenue, and then you scale. For them, their rule of thumb is, if they can get a companies revenue up by a million dollars in ARR, they should expect a $12 million dollar valuation increase, right? We have a VP of revenue.

InsightSquared Unveils Industry’s Most Complete and Flexible Revenue Intelligence Platform, Now with Conversational Intelligence

InsightSquared

The InsightSquared (IS2) Revenue Intelligence Platform was architected from the ground up for scale, security and speed. Introducing Advanced Sales Math, Fuel for Proactive Revenue Teams. Six Integrated Solutions in One Revenue Intelligence Platform. BOSTON — SEPT.

The rise of the anti-metrics sales leader with Joshua Desha

Predictable Revenue

Metrics have become a pillar of modern sales. From interviews, to meetings, to ones day-to-day executional tasks – metrics, in one way or another, have become a part of them all. But according to Joshua Desha, a veteran entrepreneur and insurance sales leader, a metrics-driven approach to sales has actually robbed the professional of its heart and soul. The post The rise of the anti-metrics sales leader with Joshua Desha appeared first on Predictable Revenue.

Driving SaaS Customer Acquisition w/Success Metrics

Chaotic Flow

As a SaaS business matures, the importance and value of SaaS metrics increase. Most SaaS businesses begin their journey down the SaaS metrics path by tracking recurring revenue in relation to customer acquisition costs. These fundamental SaaS metrics are all apparent in the standard SaaS profit equation below. SaaS profit = current customers x ( avg recurring revenue – avg recurring cost ) – new customers x avg acquisition cost.

Revenue Churn: How to Calculate, Track & Improve

Baremetrics

Revenue churn answers the question: how much MRR did we lose last month? The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. What’s negative revenue churn? What is a good revenue churn rate?

Churn 63

Buttoned Up Revenue Recognition Metrics for SaaS Businesses

SaaSOptics

Chance are, your early-stage SaaS business has a business-casual dress policy, but your financial metrics still need a buttoned-up Wall Street polish to attract savvy investors or potential acquirers. Much like a bespoke power suit would break the clothing allowance, powerful financial management suites are far too expensive to install and implement just to gain accurate revenue recognition metrics. Financial Metrics

SaaS metrics aren't just for investors. You need them, too.

SaaSOptics

often talk about B2B SaaS metrics from the perspective of what investors want. If you don’t have easy access to the metrics they expect (or, worse, if they’re wrong), your valuation could suffer and that’s the last thing SaaS founders, CEOs and CFOs want to hear. But on occasion, I’ll hear prospects say they don’t need SaaS metrics because they’re not raising capital yet. SaaS Metrics Give You Insights You Can’t Get from Recurring Revenue. Churn Metrics.

What are the most important metrics for SaaS?

SaaStr

In the early days, there are probably only 5 metrics that really matter: ARR. NPS is A Great Core Metric. And maybe … net revenue retention / churn. The post What are the most important metrics for SaaS? ARR Growth Rate. Burn Rate. Probably, NPS (more here: I Was Wrong. SaaStr ). All the rest, maybe don’t obsess too much until you are bigger. What matters in the early days is: Do you have product-market fit? So you can grow fast enough ….

SaaS Busters: ACV (Annual Contract Value) vs ARR (Annual Recurring Revenue)

Inturact

After commenting on a post by SaaSMetrics, I realized how much confusion and mixed definitions there are on the difference between ACV (Annual Contract Value) and ARR (Annual Recurring Revenue), which prompted me to think -- "I need to research this a bit more". Analytics SaaS Metrics ACV (Annual Contract Value) ARR (Annual Recurring Revenue

Increase Customer Success with Equivalent Metrics

TriTuns

Developing equivalent metrics is essential for getting people to adopt your software! People and organizations are obsessed with data and metrics to “prove” results. What is the point of having data and metrics if you don’t use them to make better decisions and take action? Metrics Need to Change Behavior. The goal of data and metrics is to gather evidence, develop insights, and then take meaningful action that delivers a better result.

Retention marketing strategies that boost revenue

Vero

The benefits of retention marketing include: Increased revenue . Another way to retain customers and boost revenue is to send upsell emails wisely. Retention metrics for software companies. Volume of key metrics. Whatever your key metric is, track it for changes.

Retention marketing strategies that boost revenue

Vero

The benefits of retention marketing include: Increased revenue . Another way to retain customers and boost revenue is to send upsell emails wisely. Retention metrics for software companies. Volume of key metrics. Whatever your key metric is, track it for changes.

The Promise of SaaS Customer Success Metrics

Chaotic Flow

Over the past few years, the SaaS community has gained a solid understanding of SaaS financial metrics, as well as many of the operational principles required to achieve them. It’s one thing to claim that a 50% reduction in churn will result in a 2X increase in recurring revenue, but it’s quite another thing to make it happen. The promise of customer success metrics is immense. Simply defining the relevant customer success metrics is a difficult problem onto itself.