SaaStr

MAY 12, 2023

So SaaS Capital put out its latest report on SaaS retention and NRR after having surveyed over 1,500 SaaS companies and professionals. Let customers buy the way they want to buy. #2. Median NRR is 102% across all SaaS companies, Media Gross Retention is 91%. You can download it here.

Contract 124

Contract Closing Customers Sales 124

SaaStr

JANUARY 27, 2024

Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS? Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. And that leaves you at the 75%-85% gross margins traditional SaaS companies have. appeared first on SaaStr.

Customers 87

Customers Growth 87

SaaStr

MARCH 27, 2024

So we’ve probably covered HubSpot more than any other SaaS and Cloud leader on this 5 Interesting Learnings series, but there’s a good reason for it: First, HubSpot is a lot like most of us. New customers are still growing 23% a year, even at 200,000+ Customers and $2.4 And second, so many of us use HubSpot.

Non-Profits 96

Non-Profits Drivers/motivators Growth Price 96

SaaStr

SEPTEMBER 3, 2023

SaaStr Founder and CEO Jason Lemkin and Partner at QED Investors Amias Gerety chat on the Fintech Beat podstream about all things SaaS, money, and what makes a great founder. What Makes SaaS So Great If you’re here on SaaStr reading this, you don’t need to be told why SaaS is so great. Net dollar retention is ideally over 120%.

Finance 90

Finance Growth Meeting Trust 90

SaaStr

MAY 10, 2024

ARR 23% Growth 22% Customer Growth 15% Operating Margins (non-GAAP) That’s about as good as it gets. This is probably what most of you are seeing for pure-play B2B SaaS sales, too. The customers come and go faster. Even as many selling software to tech have struggled, HubSpot has maintained top-tier growth. But 2023?

B2C 87

B2C B2B Growth Price 87

SaaStr

APRIL 19, 2024

How do you reverse-engineer your first million as a SaaS startup founder? EchoSign, which Adobe bought, had $12M in ARR, growing 100%, with 120% revenue retention and cash flow positive. Now, every public SaaS company is at $300k to $400k of revenue per employee. That’s the easiest thing because the customers already know you.

Engineering 98

Engineering Price Cross-sell Niche 98

SaaStr

JANUARY 21, 2024

But Product-Led Retention Is Probably Even More Important. SaaStr 717: How Enterprise SaaS Companies are Buying AI (or Not) with ContextualAI, Anthropic, and Glean   2. SaaStr 717: How Enterprise SaaS Companies are Buying AI (or Not) with ContextualAI, Anthropic, and Glean   2. Just Raise One Round.

Pitch 79

Pitch Growth Start-ups Product 79

Partners in Excellence

MAY 10, 2024

“As A Service,” particularly SaaS has become the “fashion” in business over the past decade. Customer could choose to sign contracts for several years, but they couldn’t purchase them outright. Customer could choose to sign contracts for several years, but they couldn’t purchase them outright.

Service 62

Service GTM Contract Price 62

SaaStr

AUGUST 7, 2023

Learn about the most important SaaS metrics for founders in 2023 with the CEOs of the most metric-oriented company, monday.com, and the founder of SaaStr. For a quick recap on SaaS metrics: What is ARR in SaaS? How Is CAC Calculated In SaaS? In the early days of SaaS, efficiency mattered because there was no capital.

Finance 74

Finance Manufacturing Niche Growth 74

SaaStr

JANUARY 28, 2024

But Product-Led Retention Is Probably Even More Important. SaaStr 718: Predictions for Venture, IPOs and the State of SaaS in 2024 with SaaStr CEO and Founder Jason Lemkin and Harry Stebbings, Founder and Host of the 20 Minute VC   2. 66% of You Are Starting the Year Burnt Out. A Few Things That Don’t Actually Seem to Help.

Pitch 80

Pitch Promote Growth Start-ups 80

PandaDoc

APRIL 17, 2024

Well, are you a SaaS company or an organization that deals with yearly or multiyear subscriptions and/or contracts? Calculating ACV can deliver many benefits , from increased customer retention to better forecasting. The former tracks revenue from individual customers, whereas ARR looks at total revenue. we hear you ask.

Contract 52

Contract Non-Profits Legal Clients 52

Sales Hacker

MARCH 8, 2024

GTMnow is the media extension of GTMfund – sharing insight on go-to-market from working with hundreds of portfolio companies backed by over 350+ of the best in the game executive operators who have been there, done that at the world’s fastest growing SaaS companies. Sponsor love: The ELG Conference. Early-bird tickets expire next week.

GTM 95

GTM Growth Cross-sell Referrals 95

SaaStr

JULY 26, 2022

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. Customers don’t expect as much in terms of security, compliance, etc. Customers often can deploy on their own. Customers don’t expect you to build a feature before they buy. Endemic churn. And measuring it.

Growth 140

Growth Start-ups Up-sell Strategize 140

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Why is Jason Worried for The First Time About SaaS: We are trading at 6x revenues in the public markets. Many will pull the chord and say, we have to do it. Who Will Be the First to Go Public: ServiceTitan. Growing 40-50% cashflow neutral.

Growth 119

Growth Gaming Customers Product 119

SaaStr

MARCH 14, 2024

“Doubling Down” is a new series where we hear from top B2B SaaS investors on their most recent activities and takes on the current market. What’s the #1 bit of advice you’d give to SaaS founders today? We had a great one last time with Peter Specht, Partner at Creandum. Check that out here.

B2B 77

B2B Growth Product Customers 77

Search Engine Land

FEBRUARY 14, 2024

Online shopping is a dynamic experience for customers, sparked by the awareness of a specific need or desire. As explored in “Mapping the customer journey for SEO and marketing success,” understanding your customers’ purchase path is vital. What is a customer journey map for ecommerce?

Customers 98

Customers User Experience Referrals B2B 98

SaaStr

OCTOBER 18, 2023

So Domo is an interesting case study on SaaS entrepreneurship. Founder Josh James had one of the earliest $1B+ exits in SaaS when Adobe bought his first start-up, Omniture, for $1.8 After decades running SaaS companies, it was time for a break in 2022, and Josh eventually stepped down as CEO. Billion way back in 2008.

Contract 96

Contract Price Growth Launch 96

SaaStr

DECEMBER 21, 2022

The part I didn’t originally get as a first-time SaaS founder was how relatively easy is it to grow exising accounts and account size if your customers are happy. 120% NRR: Your revenue doubles in 5 years even with no new customers. 110% NRR: Your revenue doubles in 8 years even with no new customers.

Growth 103

Growth Prospecting Customers 103

SaaStr

AUGUST 25, 2020

Q: What is more important, getting new customers or customer retention? It’s a trick question, of course — the crazy high net negative churn of top SaaS companies means that of course retention matters more than new customers. So in the early days, retention alone only gets you so far.

Customers 116

Customers Growth Engineering 116

SaaStr

MARCH 6, 2024

So Okta is one of our favorite SaaS and Cloud leaders. Customer Count Up 8% Year-over-Year to 18,950 It’s hard to find net net customers after $1B ARR. At some point, it can feel like everyone already is a customer. 8% new customers + 111% NRR = their +19% yearly growth now. #4. The story is super inspiring.

Contract 86

Contract Engineering B2B Growth 86

SaaStr

NOVEMBER 15, 2022

Metrics are the key to evaluating success and setting goals, but not every SaaS business should orient itself around the same one-size-fits-all numbers. The Evolution of Language For SaaS Business. After all, it wasn’t so long ago that SaaS metrics gained respect and popularity in the industry. Gross Retention = 90% +.

Drivers/motivators 85

Drivers/motivators GTM Contract Growth 85

SaaStr

SEPTEMBER 29, 2023

But then I had to learn how to Sell to Big Customers, and Sell to Power. And what I learned is customers care. Customers and prospects want to talk to the CEO. Customers are taking a risk on you, often a big risk, but in any event, in SaaS, they are changing the way they run their business to use your product.

Up-sell 111

Up-sell Start-ups Customers Sell 111

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

Up-sell 107

Up-sell Price Service Sell 107

SaaStr

JULY 23, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: The Cold Hard Truths About SaaS in 2023 with Jason Lemkin The Cold Hard Truths About SaaS in 2023 with Jason Lemkin Part 2 Want To Steal a Customer from the Competition? Some Classic Sales Objections That Are Hard to Overcome.

Go To Market 82

Go To Market Customers Product Sales 82

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. A SaaS Founder’s Guide to PR. The Private Equity Math of 1+1=3 in SaaS Acquisitions. SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. But The Best Ones Make $261k. Every Investor is Different.

Product 110

Product Process Customers Sales 110

Gong.io

AUGUST 3, 2022

For SaaS and subscription businesses, customer success is a key revenue driver. So, how exactly do you measure if a customer is “successful” (and what does that even mean?). Defining customer success and measurements . For individual clients, we can ask, “What was it that the customer wanted to achieve originally?

Customers 87

Customers Cross-sell Contract Price 87

SaaStr

SEPTEMBER 8, 2023

40% higher revenue per sponsor, and about 10% higher logo retention when we showed up in person. Now we’re all running distributed teams today, and the world isn’t all an Uber ride away in SF anymore in SaaS. The post The Customers We Visit Are Worth 40% More Than Those We Don’t appeared first on SaaStr.

Customers 90

Customers Meeting Closing Sales 90

SaaStr

JANUARY 13, 2022

The late-stage VC firm Meritech put together its annual SaaS report here and it slices the data in a few interesting ways. The average SaaS company hits $225m ARR at IPO. The average SaaS company is growing 55% at IPO (at that $225m ARR). Folks that are very SMB with mediocre retention often don’t disclose it.

Customers 122

Customers Sales 122

SaaStr

OCTOBER 12, 2021

Getting customer success right is one of the most powerful levers in SaaS: Upsell + expansion with existing customers costs 62% less than acquiring new customers ($0.63 new customer CAC, per KeyBanc 2021 Private SaaS Company Survey ). upsell + expansion CAC vs $1.67 Video: Intriguing Session Slides: .

Customers 130

Customers Presentation Campaign Engineering 130

SaaStr

FEBRUARY 19, 2023

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: Salesforce Ventures: Only 150 Private SaaS Companies Have Hit $100,000,000 in ARR Want Happy Customers? For Your Customer Success Team — And You. Implement the 5-Visits-Plus-2-Badges Rule. Top Podcasts This Week: 1.

Growth 79

Growth Product Customers Sales 79

Heinz Marketing

JUNE 30, 2023

By Karla Sanders , Engagement Manager at Heinz Marketing In the ever-evolving landscape of B2B business, customer-led growth has emerged as a powerful approach to drive sustainable success. To truly understand the significance of metrics in B2B customer-led growth, let’s consider an example.

B2B 104

B2B Growth Customers Cross-sell 104

SaaStr

APRIL 28, 2022

Our second SaaS blog post ever, in 2012 (updated after) was “Want to Understand SaaS? And we religiously track the NRR of all public cloud and SaaS leaders in our 5 Interesting Learning series. High NRR is the key to the magic in SaaS. They are the laziest ICs in SaaS. Lost a few customers?

Customers 82

Customers Growth Engineering Start-ups 82

SaaStr

MAY 30, 2022

Having high net revenue / dollar retention is the magic of SaaS. If you have 120% NRR, you double in 5 years, even with no new customers! High NRR can hide mediocre growth in new logos and customers. You need to be careful in a high NRR environment that customer count is still growing fast enough. It can mask: 1.

Growth 107

Growth Customers Start-ups Product 107

SaaStr

SEPTEMBER 19, 2022

SaaS businesses are discovering that customers choose and recommend them based not on flashy marketing or super fancy product features but on the experience of engaging with the company and the value it delivers. Delivering a cohesive and die-hard customer experience doesn’t happen accidentally. You need to be accountable.

Customers 95

Customers Construction Contract Relationship Management 95

ConversionXL

SEPTEMBER 20, 2018

Right now, there is a tsunami that’s coming to wipe out thousands of SaaS companies. The Three Tidal Waves Coming for Your SaaS Business. In one sense, this is counterintuitive: It has never been cheaper to build a SaaS company. HackerNoon even goes so far as to claim that you can now build a SaaS product with $0.).

Go To Market 289

Go To Market GTM Profit margin Education 289

SaaStr

OCTOBER 30, 2022

Check out this week’s top blog posts, podcasts, and videos: Top Blog Posts This Week: SaaS Multiples Are Down 75% From a Year Ago. Customers Love a Good Product Roadmap Review. Designing a Product Your Customer Can’t Live Without with Brex’s CEO and Mutiny’s CEO. Go Do More of Them. Billion in ARR.

Quota 111

Quota Presentation Growth Product 111

PandaDoc

MAY 9, 2024

Businesses that work on a subscription basis may prefer average customer lifetime value (CLV) instead of average deal value. A SaaS provider sells document workflow software for businesses of all sizes. We now have all the data we need to calculate sales velocity for the SaaS company. What is an example of sales velocity?

Pipeline 52

Pipeline Legal Objectives and Key Results Lead generation 52