SaaStr

SEPTEMBER 2, 2023

. “Higher growth is generally associated with higher retention and vice versa. The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. T he impact of retention is also cumulative as it repeats and expands on itself year after year.

Startup 255

Startup SaaS SMB Banking 255

SaaStr

JUNE 7, 2021

If your SMB product requires or has a salesperson involved in closing, that’s a clear sign you also want a human being involved in making sure that customer is a success post-sale, too. Just assign a certain amount of ARR per each SMB customer success manager. Support has to handle a lot of routine SMB issues anyways.

Customer Success 326

Customer Success Scale SMB Sales 326

SaaStr

MARCH 6, 2024

Split Sales Team Managing SMB Accounts Into 2 Teams, One on New Business and One on Upsell It’s interesting to see Okta do this a bit later in life than some, but it makes a ton of sense given the current macro environment. GRR / Logo Retention in Mid 90% Range. Their multi-million dollar contracts are 30%. #5. Billion in ARR!

Fractional VPE 220

Fractional VPE Part-Time VPE Scale SMB 220

SaaStr

JANUARY 13, 2022

Average NRR at IPO is 119% — but this excludes a bunch of SMB folks who did not disclose their NRR. Folks that are very SMB with mediocre retention often don’t disclose it. Pretty consistent with what we’ve seen on our 5 Interesting Learning series , but helpful to see it distilled to one average number.

SMB 315

SMB SaaS Retention Scale 315

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Many will pull the chord and say, we have to do it. Who Will Be the First to Go Public: ServiceTitan. Dominates a vertical market with over $500M ARR. Growing 40-50% cashflow neutral. Databricks probably should not, and wait until 2025.

SMB 302

SMB SaaS AI Software Review 302

SaaStr

JUNE 7, 2023

It has now secured over $67M in funding and offers a robust platform for mid-market and SMB segments. WorkRamp shifted its focus to a different segment –– the mid-market and SMB side. Customer Impact : A much better PMF for SMB & Mid-Market customers. “You In one year, WorkRamp improved gross retention by 11%.

Scale 205

Scale Scaling SMB Marketing 205

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. Each week, we round up our most popular content so you can catch up on anything you may have missed. But The Best Ones Make $261k. Every Investor is Different.

Sales Hiring 275

Sales Hiring Revenue Scale SMB 275

SaaStr

OCTOBER 29, 2020

112% Net Revenue Retention. Zendesk doesn’t see the 140%+ net retention we see in the enterprise (big deal sizes) or in many B2D companies like Twilio, but it’s still above 110% for a business that is 60% Enterprise / 40% SMB. Sometimes, you just stay a steady mix of Enterprise and SMB. No excuses.

SMB 238

SMB Enterprise Retention Churn 238

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. Squarespace is almost all not just SMB, but self-service. Their new revenue retention is about 85%. As a best-of-breed player, its net revenue retention is about 100%. Segment it.

Merchant Services 265

Merchant Services Revenue SMB SaaS 265

SaaStr

FEBRUARY 24, 2021

100% Client Spend Retention across 139,000 Customers. I would have expected lower than 100% net revenue retention from Upwork, given that much of the spend can be episodic. Net net, even from SMBs, Upwork manages 100% NRR, just as Shopify and Hubspot do from SMBs. 80% SMB, 20% Enterprise. So what can we learn?

Marketplace as a Service 266

Marketplace as a Service SMB Cloud Enterprise 266

CustomerSuccessBox

MAY 25, 2021

That’s because Customer Retention is critical. Customer retention is critical — particularly for B2B SaaS companies. Click here to know why customer retention is important. Calculating Customer Retention. When it comes to measuring customer retention, the two most important things are.” GRR or NRR.

Retention 52

Retention Metrics Outsourced Development SMB 52

SaaStr

MARCH 20, 2021

Traditionally, that has meant even 100% Net Revenue Retention can be tough when 20%-30% of your customers may be out of business in a given year! Smartsheet: 123%+ NRR from all customers, so probably ~110% from SMBs : #2. Zendesk: 112% NRR overall, with 40% SMB. So probably again around 100% NRR from SMBs.: #3.

SMB 249

SMB Churn Retention Enterprise 249

SaaStr

JUNE 29, 2022

It’s moved beyond its tiniest customers, of an ACV of < $1k, but other than that, it’s going upmarket without giving up its SMB roots. Even though Zendesk still has thousands and thousands of SMB customers. #2. Zendesk IPO’d as an SMB support solution. At $1B in ARR, Zendesk was growing 24%.

SMB 268

SMB Scale B2B Metrics 268

SaaStr

DECEMBER 5, 2021

Do Salary Increases Help With Retention? The State of Software Buying From SMB to Enterprise with G2’s CMO, Amanda Malko. When Everyone Else Has Gone Home. What are Some Early Signs a New VP isn’t Going to Be a Fit? Corporate VC Investments: Limited, But Real, Pros. And Cons. appeared first on SaaStr.

Scale 232

Scale SMB Scaling Retention 232

SaaStr

DECEMBER 15, 2021

7:00 AM (50 MINS) – Acquiring SMB 10,000 Customers Solely from Data with Gorgias’ CEO Romain Lapeyre. 9:00 AM (20 MIN) – 10 Learnings Scaling from Consumer to SMB to Enterprise with Grammarly’s Head of Organizations Revenue Dorian Stone. All times are in Pacific Time. 7:00-8:00 AM PT. 8:00-9:00 AM PT.

Scale 229

Scale VP of Engineering Scaling SMB 229

OPEXEngine

SEPTEMBER 22, 2020

Net dollar retention is the most important metric in SaaS. We find that companies with great net dollar retention (100%+) grow quickly and are more cash efficient than those with mediocre or poor net dollar retention. In summary, have a maniacal focus on net dollar retention. Republished with permission.

Retention 59

Retention SMB Social Media Subscription 59

SaaStr

MARCH 12, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long (Updated) The 8 Signs of a Failing Sales Rep. SaaStr CRO Confidential: Brex GM of Startups Lucas Fox on Customer Retention and Expansion 3.

Scale 200

Scale SMB Sales Scaling 200

Clouded Judgement

MARCH 22, 2024

Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! For “fake” ARR, retention can vary wildly.

AI 183

AI Revenue Cloud Technical Advisors 183

SaaStr

DECEMBER 20, 2022

The 4 V’s of Sales: Volume, Value, and Velocity: Head of SMB Sales Fernando Belfort and Head of Sales Enablement Kendra Wrightson. #19. How to Maintain +140% Customer Retention with Dooly CEO Kris Hartvigsen and Head of Customer Success Ellie Hutton. Learnings from Innovating in Underserved Markets with Samsara CPO Kiren Sekar.

Scale 211

Scale SMB Sales Enablement Innovation 211

SaaStr

DECEMBER 2, 2020

Some deceleration in net retention. But net retention, while strong, has declined from 135% to 125% over the past 5 quarters. But we’ve seen many SaaS and Cloud leaders manage to maintain consistent net retention at $1B+ ARR. But Slack’s SMBs seem to have accelerated, too, since then. Competition?

SMB 246

SMB Enterprise Cloud Retention 246

SaaStr

APRIL 8, 2023

Here’s a list of some of the most popular to dig into: Atlassian’s CRO Cameron Deatsch: “How The Biggest Product-Led Enterprise Company In The World Did It” Skilljar’s CRO: “An Inside View on Hiring Your First CRO” Rippling’s CRO: “Entering a Hyper-Competitive Market” DigitalOcean’s (..)

Scale 256

Scale Sales Hiring SMB SaaS 256

Chart Mogul

FEBRUARY 19, 2021

Learn how to measure, analyze, and improve your retention rates to turn your SaaS business into a success. Every time I think about how SaaS companies grow, I come back to the idea that: Growth is the result of engagement, retention, and monetization. What is retention? If you have poor retention, nothing else matters.

Retention 72

Retention Churn Benchmarks SMB 72

Tom Tunguz

FEBRUARY 6, 2019

In the SMB, month to month is more common. Aim for 90%+ Logo Retention. Higher rates of customer retention are more common in the mid-market and enterprise. Target 100-140% Net Dollar Retention. The top quartile of respondents observe net dollar retention of 120%+. Annual contracts dominate in the mid-market.

Payment Services 273

Payment Services SaaS Payments SMB Benchmarks 273

Clouded Judgement

APRIL 11, 2024

net retention and CAC payback). In simpler terms — if you had 10 customers 1 year ago that were paying you $1M in aggregate annual recurring revenue, and today they are paying you $1.1M, your net revenue retention would be 110%. I consider >120% best in class for companies selling to SMBs (like Bill.com).

Cloud 177

Cloud Software Azure AWS 177

SaaStr

APRIL 11, 2021

”The Playbook to Boosting Net Retention (Quickly) with Terminus’s CEO” SaaS veteran Tim Kopp takes us through a deep dive on driving up NRR. #2 What were we all watching? Let’s dive in! #1.”The 4 “SOC 2 Demystified: The Key to Closing Enterprise Deals with Vanta CEO Christina Cacioppo.”

Scale 261

Scale SMB Scaling Retention 261

SaaStr

MAY 26, 2019

self-service customers, at some point, you can potentially have the entire world as customers and mature out in SMB. One worry with SMB and freemium is how big can the market be? 100% Dollar-Based Retention for organizations. This is strong for SMBs, but at the low end of public SaaS companies overall. With 670,000+ (!)

Scale 237

Scale SaaS Payments Payments Payment Services 237

SaaStr

JULY 24, 2019

The theme of today’s talk is How to Build the CSM Team that Generates 130% plus Net Retention. At Talkdesk, we have achieved really amazing customer retention, net retention, advocacy, loyalty. Final point about Talkdesk is that we started selling about five years ago in the SMB space.

Retention 137

Retention VP of Engineering Sales Hiring Scale 137

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. Anyone processing a lot of SMB and credit-card deals saw churn probably double.

SaaS Payments 277

SaaS Payments Sales Hiring Scale SMB 277

Andreessen Horowitz

APRIL 23, 2024

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? Immad: I find it funny that everyone complains about the difficulty of SMB and consumer customer acquisition, but ironically, SMB and consumer companies are some of the most valuable.

Payments 107

Payments Forecasting Payment Services Payment Solutions 107

Chart Mogul

AUGUST 5, 2021

On this week’s podcast, I talk with ecommerce expert and Co-founder of Assembly, Adam Crawshaw, about the strategies they use to build net dollar retention and make Assembly an ecommerce powerhouse. Adam uses an often overlooked SaaS metric, net dollar retention, to strategize. About the episode.

Retention 52

Retention Enterprise Entrepreneurship SaaS 52

Chart Mogul

AUGUST 5, 2021

On this week’s podcast, I talk with ecommerce expert and Co-founder of Assembly, Adam Crawshaw, about the strategies they use to build net dollar retention and make Assembly an ecommerce powerhouse. Adam uses an often overlooked SaaS metric, net dollar retention, to strategize. About the episode.

Retention 52

Retention Enterprise Entrepreneurship SaaS 52

Tom Tunguz

AUGUST 26, 2023

However, NDRs (net dollar retention) are equal. Typically, enterprise customers expand more than SMB. Braze may offer more professional services / support to larger customers which may reflect in gross margin. The difference in customer base is apparent in the ACV : $4.5k vs 169k, a 37x delta.

Benchmarks 174

Benchmarks Venture Capital Marketing SMB 174

SaaStr

MAY 19, 2021

Not all SMB leaders have to be freemium to win. #7. Once they added a sales team, NRR and cohort retention went way, way up: The post 5 Interesting Learnings from Monday.com at $240,000,000 ARR appeared first on SaaStr. Like Atlassian, Monday waited to launch a Free plan and hasn’t traditionally been a freemium play.

Scale 361

Scale SMB Government Enterprise 361

SaaStr

DECEMBER 15, 2022

SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. #10. SaaStr 527: Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre. #5. If you missed #13-#25, you can find them here ! #12.

Scale 148

Scale SMB Innovation Scaling 148

SaaStr

OCTOBER 11, 2023

You don’t want to overwhelm SMB customers, and Monday made this a focus from day one. The Secret To Conquering High NRR From SMBs monday.com went from 125 to 110 NRR, which is macro yet still epic for SMB. How do you get over 100 for SMB? But how did they conquer high NRR for SMBS? They measured it from day one.

Scale 164

Scale Sales Hiring Scaling Banking 164

SaaStr

FEBRUARY 13, 2022

SaaStr 527: Acquiring SMB 10,000 Customers Solely from Data with Gorgias CEO Romain Lapeyre. How to Maintain +140% Customer Retention with Dooly’s CEO, Kris Hartvigsen, and Head of Customer Success, Ellie Sutton. SaaStr 526: Lessons Learned Building a $2 billion Company from Scratch with Neo4j CEO & Co-Founder Emil Eifrem.

Scale 196

Scale SMB Sales Cloud 196

Tom Tunguz

AUGUST 26, 2023

However, NDRs (net dollar retention) are equal. Typically, enterprise customers expand more than SMB. Braze may offer more professional services / support to larger customers which may reflect in gross margin. The difference in customer base is apparent in the ACV : $4.5k vs 169k, a 37x delta.

Benchmarks 160

Benchmarks Venture Capital Marketing SMB 160