article thumbnail

Dear SaaStr: Which Tactics Always Work to Drive Down Churn, and Drive Up Retention?

SaaStr

Dear SaaStr: Which Tactics Always Work to Drive Down Churn, and Drive Up Retention? Big customers should churn less on a net revenue basis (including upsells) than small customers. We already discussed this a bit above, but make driving down churn and drive net retention up a Top 5 company goal. First, measure Churn.

Churn 270
article thumbnail

Usage-Based Revenue Models: Successes and Pitfalls from Checkr COO Lindsey Scrase on CRO Confidential

SaaStr

As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. ” Quickly, Lindsey found that comp plans weren’t aligned with Checkr’s revenue goals and incentives.

Revenue 293
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Dear SaaStr: How Should I Calculate Gross Dollar Retention For Our Investors?

SaaStr

Dear SaaStr: How Should I Calculate Gross Dollar Retention For Our Investors? Gross Dollar Retention (GRR) is a critical metric for SaaS businesses, especially when presenting to investors. It tells them how much of your revenue base you’re retaining, excluding any upsells or expansions. moved to a lower-tier plan).

Retention 185
article thumbnail

A Look Back at Q1 '25 Public Cloud Software Earnings

Clouded Judgement

net retention and CAC payback). Q1 Revenue Relative to Consensus Estimates Now let’s dive in to the financial results of Q1 starting with revenue. Beating consensus revenue estimates is the first aspect of a successful quarter. The formula to calculate this is: (Q1 ’25 revenue) / (Q1 ’24 revenue) - 1.

Cloud 277
article thumbnail

The Next Evolution in Subscriptions and Recurring Payments

Rise to the next level of recurring revenue. Learn the crucial strategies for building scalable, secure, and seamless recurring payment infrastructure to boost customer retention and fuel growth. Discover how recurring payments are reshaping industries beyond simple subscriptions, driving a $1.5 trillion market.

article thumbnail

Top 10 Interesting Learnings From Figma’s IPO Docs … That You May Have Missed

SaaStr

Beyond the obvious metrics of explosive revenue growth (48% YoY at almost $1B ARR!!) Customer Cohort Durability: 96% Gross Retention While everyone focuses on the 132% Net Dollar Retention, the 96% Gross Retention Rate for customers above $10K ARR is remarkable. Here are the hidden gems: 1.

article thumbnail

How to Train Your Sales Leaders: Key Learnings from HubSpot and BILL with Michelle Benfer

SaaStr

Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. ” 3.

article thumbnail

SaaS Essentials: Failed Payment Solution Guide

For SaaS businesses, improving retention is one of the easiest and most effective ways to drive revenue and profits. Achieving your retention goals starts with the right solution. With a clear link between failed payments and customer churn, having a robust failed payment recovery solution isn’t optional—it’s essential.

article thumbnail

SaaS Business Fundamentals: How Decline Codes Impact Failed Payment Recovery

Understanding your decline reason make up can be a game changer when it comes to improving retention and revenue. Download this guide to discover: Why not all decline codes are equal Tailoring your recovery strategy for each decline reason can significantly improve retention.

article thumbnail

Driving Growth, Customer Satisfaction, and Retention through Usage-Based Pricing

As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing. However, despite the growing recognition of its benefits, there is a lack of comprehensive guidance o

article thumbnail

A Solution for Every Type of Churn: Solving Involuntary SaaS Churn

Caused by failed payments, this overlooked source of friction quietly erodes both customer retention and revenue. It leads to revenue losses and can be the largest source of churn, yet your company may not be taking it seriously. How is your SaaS business addressing involuntary churn?

article thumbnail

Leveraging Consumption to Drive Growth: The SaaS Expert's Guide to Usage-Based Pricing

Speaker: Igor Stenmark, Andrew Dailey, &Youssef Yaghmour

Unleashing Usage-Based Pricing to Drive Growth, Customer Satisfaction and Retention: The Why’s, How’s and Roadmap Practical Steps to Making Consumption Pricing Models Simple As companies strive to boost revenue, deliver customer value, and stay competitive, they are increasingly embracing the potential of usage-based pricing.