SaaStr

SEPTEMBER 29, 2022

Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? A few thoughts on retention compensation when you are acquired. Second, understand there are both carrots and sticks that acquirers can employ, and that the retention may involve a combination of both. Extra payments if your business hits $YYm in revenues.

Acquisition 232

Acquisition Retention Payments Compensation 232

SaaStr

MAY 18, 2021

But one thing that is almost always true, is you get more renewals, more upsells, and more net revenue retention from your largest customers. Their new revenue retention is about 85%. HubSpot is almost all small businesses, but at a higher price point ($10k) that is sold directly and through channel partners.

Merchant Services 260

Merchant Services Revenue SMB SaaS 260

SaaStr

APRIL 19, 2024

EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. You Want One-Third of Your Revenue Outside the U.S.

Engineering 199

Engineering Business Model Pricing Scaling 199

Chart Mogul

MARCH 23, 2023

Are you effectively expanding revenue from your existing customer base? And, is your poor retention the reason for your slower growth in 2023? If you’re unsure, check your retention metrics. Are you effectively expanding revenue from your existing customer base? If you’re unsure, check your retention metrics.

Retention 52

Retention Metrics Revenue Scale 52

Chargebee

APRIL 3, 2024

Discover how Chargebee transforms subscription pricing strategies to drive revenue growth and enhance customer retention. With flexible pricing, dynamic adjustments, and detailed analytics, Chargebee enables businesses to align prices with customer value seamlessly.

Pricing 52

Pricing Subscription Payment Features Strategy 52

SaaStr

MAY 27, 2022

On average, you got a 33%+ boost in revenue when you hired your first VP of Sales. Hire a great VP of Sales, and revenue goes up. About two-thirds of you have a 90%+ logo retention rate. This sounds a bit high to me, and some founders may think their logo retention is higher than it really is. So yes, it always works.

Sales Hiring 266

Sales Hiring Pricing Scale Interviewing 266

User Pilot

OCTOBER 24, 2023

From the messaging, positioning, and pricing models, every little detail needs to be perfect for product-led growth to take off. TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). What is usage-based pricing?

Pricing 105

Pricing Payment Solutions SaaS Payments Payments 105

User Pilot

JANUARY 19, 2023

Looking to improve your retention rates by reducing customer retention costs? This is why it’s critical to understand retention costs and how to reduce them. In this article, we’ll explore customer retention costs. Customer retention cost (CRC) is the amount you spend on customer retention over a specific period.

Retention 98

Retention Customer Lifetime Value Onboarding Acquisition 98

SaaStr

MARCH 9, 2022

During his SaaStr Annual presentation, Tom Clayton, CRO of Bill.com, shared his insights and advice for growing revenue streams to maximize business success. . Pursue Diverse Revenue Models. Sometimes, it takes innovative thinking to pull more revenue out of a current customer base or business model. The Five Key Growth Levers.

Revenue 226

Revenue Sales Hiring Leadership Scale 226

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 188

Pricing Scale AI Retention 188

Clouded Judgement

APRIL 11, 2024

net retention and CAC payback). This has all resulted in the median stock price declining 5% YTD. It looks at the YoY dollar change in quarterly revenue from the hyperscalers (just looking at Azure / AWS because the data goes back further) going back a few years. Is Software Rebounding? Who are the real AI winners.

Cloud 177

Cloud Software Azure AWS 177

ChurnZero

JULY 8, 2022

Oh, by the way, what’s your customer retention?” It was clear that, barring any wildly outlandish figures, customer retention wasn’t a dealbreaker in their decision to invest. Cut to 2022, and the idea that a SaaS company could secure venture funding without investors digging deep into retention metrics seems comical, if not reckless.

Technical Review 98

Technical Review Software Review Retention Metrics 98

OPEXEngine

JUNE 2, 2020

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. What is revenue retention? Net Revenue Retention Rate.

Retention 52

Retention Churn Revenue Metrics 52

SaaStr

JULY 13, 2022

Co-founder and CEO of Insider , Hande Cilingir, talks about what it takes to write a successful revenue growth story. Contract processes, packaging, and pricing might change. However, the revenue forecast accuracy and the realization of that revenue each month are more important. Mistake 1: Not accepting your mistakes.

Scale 201

Scale Sales Hiring Revenue Marketplace as a Service 201

Chargebee

APRIL 9, 2024

The "2024 State of Subscriptions & Revenue Growth Report" reveals a pivotal shift in the subscription sector. With 96% of leaders anticipating revenue growth, the focus intensifies on customer retention and AI-driven efficiency. Despite optimism, challenges like price adjustments loom.

Subscription 52

Subscription Payment Features Revenue AI 52

Chart Mogul

JUNE 1, 2023

Companies with best-in-class retention grew at least 1.8x In an uncertain market, customer retention is key. So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. What is customer retention?

Retention 90

Retention Metrics Benchmarks SaaS 90

SaaStr

MARCH 27, 2024

Revenue Growth is Up Just 24%. HubSpot’s revenue growth of 24% (21% in constant currency) is basically equal to its net new customer count. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. Clearly, even SMBs are working to moderate spend, even as vendors increase pricing.

Scale 220

Scale Cloud Pricing Scaling 220

User Pilot

JULY 31, 2023

Looking to power up your retention marketing strategy? This article will show you practical strategies to crack the customer retention code and maintain sustainable recurring revenue. This article will show you practical strategies to crack the customer retention code and maintain sustainable recurring revenue.

Retention 98

Retention Strategy Marketing SaaS 98

Blulogix

FEBRUARY 19, 2024

This blog post delves into advanced strategies that can help subscription services foster deeper connections with their customers, thereby improving retention rates and fostering brand loyalty. Retention, on the other hand, focuses on maintaining these subscribers over time, turning them into loyal advocates for your brand.

Retention 52

Retention Engagement Strategy AI Search 52

ChurnZero

JUNE 24, 2022

In our webinar, 2022 SaaS retention benchmarks , SaaS Capital Manager Director Rob Belcher shares the results from their 11th annual B2B SaaS benchmarking survey. You can download the full report for net retention and gross retention benchmarks as well as retention metrics in relation to ACV, growth, size, and more.

Benchmarks 98

Benchmarks Retention Software Review Technical Review 98

FastSpring

AUGUST 19, 2022

According to an OpenView survey, by 2023, 56% of SaaS companies will be using or expecting to test usage-based pricing, which they define as “a pricing model that enables customers to pay for a product according to how much they use it.”. Seat-based pricing (SBP) is a usage-based metric. SaaS pricing is tough to optimize.

Pricing 134

Pricing SaaS Technical Review Forecasting 134

Clouded Judgement

APRIL 19, 2024

Subscribe now Rubrik IPO Update This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. NTM revenue multiple. Their GAAP revenue grew 5% in 2023, and 29% in Q4 ‘23 YoY. For context, full year GAAP revenue in 2023 was $628m. Revenue multiples are a shorthand valuation framework.

Cloud 141

Cloud Scale Subscription Payment Features 141

User Pilot

JULY 27, 2023

Are you a results-driven product manager looking for the best product retention strategies for SaaS growth? In this article, we’re going to do a deep dive into a whopping 16 different strategies you can draw from to boost customer retention and increase loyalty. Launching customer retention programs that reward loyal customers.

Retention 97

Retention Strategy Management Churn 97

Blulogix

FEBRUARY 9, 2024

How Recurring Revenue Sustains Modern Businesses Amidst Uncertainty By BluLogix Team The Vital Role of Recurring Revenue In an era marked by rapid technological advancements and shifting consumer preferences, recurring revenue models have become the lifeline for modern businesses.

Revenue 52

Revenue Business compliance B2B 52

Subscription Flow

JANUARY 3, 2024

Consider the potential for growth if you make your pricing model a consistent priority for your company. Most SaaS companies, on the other hand, treat pricing as an afterthought, setting it and then forgetting about it, rather than viewing SaaS flexible pricing strategies as ongoing processes critical to their success.

Pricing 52

Pricing Payment Features SaaS Marketplace as a Service 52

Chart Mogul

SEPTEMBER 6, 2023

You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc. Segmentation allows you to peel the onion layer by layer to … You’re likely tracking all your global metrics to keep apprised of your business’ performance – ARR, churn, LTV, retention rates, etc.

Revenue 52

Revenue Churn Pricing Operational efficiency. 52

Kellblog

JUNE 10, 2021

This is a quick post to share the slides I presented today at the GainSight Pulse Everywhere 2021 conference in a session entitled Net Dollar Retention, Key Benchmarks at $50M, $200M, and $1B in annual recurring revenue (ARR). In the session we discuss: The answer, which is 104%. Median NDR which is surprisingly invariant across size.

Benchmarks 110

Benchmarks Retention Subscription Payment Features 110

Blulogix

MARCH 21, 2024

By BluLogix Team Mastering the Art of Complex B2B Recurring and Subscription Billing: Elevating Customer Retention in B2B Subscriptions For B2B subscriptions, customer retention is a pivotal factor underpinning the long-term success and sustainability of businesses.

B2B 52

B2B Subscription Payment Features Retention 52

Clouded Judgement

MARCH 29, 2024

Revenue multiples are a shorthand valuation framework. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. EV / NTM Rev / NTM Growth The below chart shows the EV / NTM revenue multiple divided by NTM consensus growth expectations. Overall Stats: Overall Median: 6.4x

Cloud 278

Cloud Forecasting Subscription Payment Features 278

Blulogix

FEBRUARY 17, 2024

The Art of Flexibility: How to Master Dynamic Pricing Models in Subscription Billing By BluLogix Team Adapting to the Pulse of the Market for Maximized Revenue In today’s rapidly evolving digital marketplace, static pricing models are becoming a relic of the past.

Subscription 52

Subscription Payment Features Pricing Marketplace as a Service 52

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. Before we get into the more complicated stuff, let’s consider the difference between earning revenue and collecting revenue. Subscription Revenue is Easier to Scale 3.

Payment Features 90

Payment Features Payments Subscription Revenue 90

Subscription Flow

NOVEMBER 20, 2023

Customers can pay for goods and services according to their consumption ( pay-as-you-go ), scale their service usage up or down in accordance with business needs, and have their subscriptions automatically renewed thanks to subscription billing and revenue management. What Entails Effective Subscription Revenue Management?

Payments 59

Payments Payment Features Payment Services Subscription 59

Andreessen Horowitz

NOVEMBER 1, 2023

One of the most common pricing questions we get from late-stage SaaS companies is: should we switch to a usage-based pricing model (also known as consumption-based pricing)? After all, the more their customers use their product, the more revenue they capture. What’s the role of your salesforce?

Pricing 88

Pricing Compensation Subscription Payment Features 88

Blulogix

FEBRUARY 24, 2024

Revolutionizing Revenue: What is the Role of AI and Machine Learning in Agile Monetization? This blog post delves into how AI and ML are shaping the future of agile monetization, enhancing the way businesses approach billing, customer engagement, and revenue optimization.

Artificial Intelligence 52

Artificial Intelligence Machine Learning AI Search AI 52

Clouded Judgement

DECEMBER 21, 2023

net retention and CAC payback). Q3 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q3 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q3 ’23 revenue) / (Q3 ’22 revenue) - 1.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

OCTOBER 18, 2023

Moving From Per-Seat Pricing to Consumption-Based Pricing, and See a Revenue Lift from It The analytics space has mixed models here, but Domo is moving to consumption-based pricing in part to ensure every employee at a customer that can use Domo, does use it. 50% of Revenue and Have 27+ $1m Customers.

Entrepreneurship 218

Entrepreneurship Enterprise Pricing Churn 218