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The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. SMBs go out of business, and quickly. SMBs pay monthly, and often scrutinize every expense.

SMB 355
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Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck (Pod 647 + Video)

SaaStr

The SMBTech economy is very different from enterprise software, and there is massive opportunity to capture it. Throw in the rise of social media and mobile web payment systems like Stripe and Braintree, and something revolutionary was at our doorstep. Efficient Go To Market There are a lot of ways to GTM as an SMB.

Scale 197
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Forecasting Fintech’s Future and Keeping Culture Alive: A Q&A with the CEOs of BILL and Mercury

Andreessen Horowitz

Both of you sell into SMBs, which is a notoriously difficult segment. One of the holy grails of SMB software is, how are you going to acquire customers? One of the criticisms of SMB software is that each customer can only provide so much revenue. Alex: Let’s dive into your business models.

Payments 107
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5 Interesting Learnings from Weave at $130,000,000 in ARR

SaaStr

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. But it then loses real money on onboarding, at -124% margins, and real money on hardware, at -183% margins. A fairly standard SMB price point.

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Top 10 Best Enterprise CRM solutions for 2021

Sales Hacker

As businesses grow, their software requirements grow as well. At this point, a business needs to look for an enterprise solution that can support its growth. As businesses grow and adapt, software shouldn’t hold them back. It might sound like a simple task, but choosing an enterprise CRM solution is difficult.

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Customer Churn Rate: How to Calculate and Improve Churn

User Pilot

This article shows you various ways to calculate churn, make sense of the data, and create proactive solutions to retain more customers. Poor onboarding. Apply these 7 retention strategies to reduce churn rates: Personalize user onboarding for different user segments. Leverage secondary onboarding to retain existing customers.

Churn 98
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10 Best Customer Segmentation Tools for SaaS Businesses in 2022

User Pilot

Here, we have listed a few popular customer segmentation software options and described their pros and cons. Customer segmentation tools allow you to segment customers based on shared characteristics such as their in-app behavior, or any other criteria such as the NPS score , completed milestones in the customer journey, etc.