Tom Tunguz

OCTOBER 15, 2022

Churn, slower sales processes, & pipeline supply shocks are more likely today from cyclical customers than in the past. The blue lines show non-cyclical sector performance & the red lines are cyclical sectors. I’ve watched some founders shift their sales focus to non-cyclical buyers for this reason.

Churn 298

Churn Startup Software Strategy 298

SaaStr

JUNE 2, 2022

Two things though did get hit harder — SMB Churn and Upsell s. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. So our gross SMB churn spiked to a crazy high of 5.5% You can also see highly elevated gross churn in 2009 here — the Mar-June on the left side of the X-axis.

SMB 361

SMB SaaS Churn Enterprise 361

SaaStr

JULY 15, 2022

— Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) July 14, 2022. Churn went way up, for sure. — Aaron Levie (@levie) May 26, 2022. “Note: I don’t want to hear seed companies complain about ‘the market.’ You literally just showed me a deck that said your TAM was 10,000 customers” @hunterwalk [link].

Marketing 357

Marketing Startup Cloud Churn 357

SaaStr

APRIL 26, 2023

Most of the website / presence growth came from price increases, which saw limited churn as a result. Churn was modest from their price increase, leading to material growth. Relatively inexpensive products selling to SMBs that are truly valuable don’t see much increased churn from moderate price increases. #3.

Scale 298

Scale SMB Churn Pricing 298

SaaStr

AUGUST 29, 2022

. — Jason 2022 SaaStr Annual Sep 13-15 Lemkin (@jasonlk) August 26, 2022. But SMB SaaS has a lot of challenges, too: Churn is much higher. So many VCs and others have gotten more and more excited about SMB SaaS. After all, there are far from SMB customers than enterprise ones. Millions and millions more.

SaaS Payments 347

SaaS Payments Scale SMB PayPal 347

SaaStr

JUNE 26, 2022

Big Companies Don’t Churn. SaaStr 567: 16 Ways to Level Up in 2022 with SaaStr Founder and CEO Jason Lemkin. 16 Ways to Level Up in 2022 with SaaStr Founder and CEO Jason Lemkin. AngelList: Seed Rounds Have Fallen 50% in Volume Since March. They Quit You. 5 Interesting Learnings from Sprout Social at $240,000,000 in ARR.

CTO Hire 297

CTO Hire CTO Sales Hiring Scale 297

SaaStr

OCTOBER 18, 2023

After decades running SaaS companies, it was time for a break in 2022, and Josh eventually stepped down as CEO. 30% of the Sales Team Churned in 2022. 67% of Customers on Multi-Year Contracts, And Going Up, This certainly helps slow down churn, even if it really just masks it in the end. #7. Much Lower So Far in 2023.

Entrepreneurship 306

Entrepreneurship Enterprise Pricing Churn 306

Tom Tunguz

MAY 15, 2022

Go Big or Go Profitable : customers want the product and the company has faith that bookings and churn won’t suffer in a downturn. An essential ingredient to deciding 2022 strategy is the answer to: will our business be impacted by a US recession? Or raise capital despite uncertain market to prioritize growth. in gross profit?

Startup 355

Startup Outsourced Development Scale Banking 355

User Pilot

JULY 6, 2022

Looking for actionable tips to reduce revenue churn fast? As retention is extremely important for any SaaS company, reducing customer and revenue churn is a top priority. In this article, you'll learn everything you need to know about revenue churn and how to reduce it. What is revenue churn? Keep reading!

Churn 98

Churn Revenue Software Review SaaS 98

SaaStr

DECEMBER 27, 2023

Digital Ocean is only growing 16% now at $700m ARR, and churn is up and NRR down. Still Pushing ARPU Up, Churn Stable — But NRR Way, Way Down This Year Digital Ocean has small customers and tiny ARPUs, but pushing the ARPU up a bit has a huge impact on a percentage basis. Churn Stable. It’s gotten crazy good.

Scale 298

Scale AWS Azure Cloud 298

SaaStr

JULY 31, 2022

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long. SMB SaaS has a lot going for it, but one big existential challenge — inherent churn. SaaStr 575: The State of SaaS Marketing in 2022: Mutiny & SaaStr with the CMOs of Salesforce, Box and Attentive. Here’s what to do about it.

New CTO 306

New CTO CTO SMB Venture Capital 306

Kellblog

OCTOBER 30, 2022

Forecast 2022 ARR growth of 36%, so they’re planning to accelerate. Gross churn of 14%, in line, perhaps a tad high, relative to my guess. Gross churn of 14%, in line, perhaps a tad high, relative to my guess. 3] KBCM calls this non-renewal rate, but I think it’s 1 – ATR churn. blended, 1.8 new, and 0.6

Metrics 143

Metrics SaaS Benchmarks Churn 143

SaaStr

JANUARY 31, 2024

You can see below, “RPO” — contracts that are signed but not yet fully delivered — stayed strong through 2022 and 2023 and actually accelerated during the end of 2023. So you wouldn’t expect much overnight churn. Seeing Strong Bookings As Well Going Into 2024. No Downturn At All. The Big Customers Pay $4.5

Enterprise 318

Enterprise Scaling Churn Engineering 318

SaaStr

MAY 10, 2024

I.e., folks aren’t churning or leaving. If you look at their chart below, you’ll see on the consumer and prosumer subscription side, there was a downturn / slowdown going into 2022 as we came out of the Covid Boost of 2021. But it’s a lot harder to close them. Still, even now. mobile subscriptions. But 2023?

B2C 289

B2C Mobile B2B Subscription 289

SaaStr

JANUARY 12, 2024

Now, in 2024, we’re in the age of efficiencies, and we’re rethinking whether we should put more people on it or tolerate more churn and issues because we want to be cash flow positive. People did invest a lot in CSM, and in 2021 and 2022, the CSM population grew roughly 20%. From 2022 to 2023, it grew 0%.

Sales Hiring 323

Sales Hiring Customer Success Scale AI 323

Intercom, Inc.

NOVEMBER 30, 2021

Juggling outdated, disjointed tools is a recipe for team burnout, customer dissatisfaction, and ultimately, churn.

Technical Review 249

Technical Review Customer Support Payment Methods Payment Solutions 249

Intercom, Inc.

MARCH 28, 2022

According to the International Data Corporation (IDC) , 65% of global GDP will be digitalized by 2022, and investment in digital transformation (DX) continues to grow. “Technology capabilities were one of the key factors of business success during the height of the COVID-19 pandemic”. This trend shows no signs of slowing down.

Scale 228

Scale Engagement Technical Review Business 228

SaaStr

DECEMBER 29, 2022

The Best in SaaS are still growing at incredible rates, but the overhang from the crazy multiples and VC funding run of late 2020-early 2022 will hang over our heads for the rest of the year. Shopify is seeing higher e-commerce growth at the end of 2022 than earlier, Healthcare has seen no real downturn or impacts. Be thoughtful.

Sales Hiring 299

Sales Hiring Venture Capital Healthcare Communication 299

Clouded Judgement

MARCH 10, 2023

What excites me is the strength of these platforms are reflected in new customer adds and stable gross churn. It sounds like most are guiding as if there’s no improvement to consumption trends coming throughout the full year. What’s interesting is all of these companies (if I recall correctly) had very strong new customer adds.

Cloud 244

Cloud Trends Payment Features Subscription 244

SaaStr

MAY 22, 2023

The best of us kept growing , albeit with elevated churn through 2010: What Really Happened to SaaS in the ’08-’09 Recession And to those of us who have been doing SaaS a long time … 2023 just feels Like it Used to Be. 2022 was harder, but it took a while to see it wasn’t transitory. Get Easier Every Year.

SaaS 319

SaaS Churn Sales Software 319

SaaStr

JULY 10, 2022

A great VP of Customer Success in just a quarter or so decreases churn and increases account revenue growth. Churn slowly increases. jasonlk) July 9, 2022. — Dave Kellogg (@Kellblog) July 9, 2022. Or she brings in more leads for the same budget. Or drives the engineering team to ship more features per quarter.

Sales Recruiting 260

Sales Recruiting Sales Hiring Scale Churn 260

SaaStr

APRIL 14, 2022

jasonlk) April 12, 2022. They wait too long to measure churn properly, and measure it wrong. . — Jason BeKind Lemkin #???????????? Most startups just wait way too long to get finance right: They wait too long to get collections right, and have to write off a lot of bookings. So what are some rough rules?

Scale 276

Scale Finance Churn Startup 276

SaaStr

AUGUST 6, 2022

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long. SaaStr 575: The State of SaaS Marketing in 2022: Mutiny & SaaStr with the CMOs of Salesforce, Box and Attentive. Is Every SaaS Startup Worth Half of What It Was Last Year? Every Venture Backed Startup is Now Competing for Reserves.

SMB 278

SMB Startup Scaling Churn 278

SaaStr

AUGUST 28, 2022

They churn at the highest rate. By removing the Bronze sponsorship, folks had to buy a standard priced Gold sponsorship in 2022. How much additional revenue did we gain in 2022 by, in essence, forcing folks into a high pricing tier? It’s something at SaaStr I generally strongly recommend against. Unfortunately we’ll never know.

Scale 299

Scale Sales Hiring Pricing Churn 299

SaaStr

OCTOBER 13, 2022

We’ll see 2,500+ of the best SaaS founders, execs, and VCs June 6-7 at 2022 SaaStr Europa ! You get a complete overview of your global subscriber base; MRR, ARPU, ASP, churn and LTV are presented in a beautiful and easy to use dashboard. Grab tickets here. . Join these incredible companies to experience all the value of SaaStr!

GCP(Google Cloud Platform) 261

GCP(Google Cloud Platform) Azure AWS Enterprise readiness 261

SaaStr

MARCH 23, 2022

jasonlk) March 21, 2022. Teams churn, and it’s not the same after. SaaS is Back!! pic.twitter.com/jFqQ6zRz6A. — Jason BeKind Lemkin #???????????? Recently a number of founders have reached out to me about offers to acquire their company from Private Equity firms like Thoma Bravo, Vista, etc. It’s not the same.

CTO 355

CTO Acquisition Cloud Scaling 355

SaaStr

OCTOBER 4, 2023

What happened was everyone got more conservative in 2022, cutting back on spend. This chart for net new ARR peaked in Q2 of 2022. People loved Zoom and didn’t churn. Samsara is a quiet but big vertical, and they hit a low point earlier than ZoomInfo in Q2 of 2022. If they’re booming, you should be growing.

Sales Hiring 291

Sales Hiring SaaS Headcount Compensation 291

SaaStr

JANUARY 4, 2023

Okta is seeing higher SMB churn and more ROI scrutiny, but is also benefitting from some customers wanting to centralize on fewer core vendors. They aren’t there yet at $2B in ARR, and operating margins are fairly low. A reminder scaling SaaS takes real capital. #9. Seeing both positives and negatives in current macro environment.

Scale 318

Scale Headcount Sales Hiring SMB 318

SaaStr

NOVEMBER 11, 2022

At the end of Day 3 of SaaStr Annual 2022, Jason opened up the mic for an AMA. What I mean is Ben broke the rule that he didn’t care what NRR and churn were. The post AMA at SaaStr Annual 2022 with SaaStr Founder & CEO Jason Lemkin – Part 1 (Pod 607 + Video) appeared first on SaaStr. Setting goals.

Outsourcing Services 243

Outsourcing Services Banking CTO Hire New CTO 243

SaaStr

OCTOBER 27, 2022

We’ll see 2,500+ of the best SaaS founders, execs, and VCs June 6-7 at 2022 SaaStr Europa ! Upzelo helps you fight churn and increase retention through real-time data, customised offers and better customer feedback. Grab tickets here. . Join these incredible companies to experience all the value of SaaStr!

Merchant Services 244

Merchant Services Payment Solutions Onboarding Payments 244

SaaStr

MAY 1, 2022

Are You Fundable in 2022? 10 Rules for Defining Churn with SVP of Customer Success & Retention at Solarwinds, Andrea Webb, and SVP of Commercial Strategy & Operations at ForgeRock, Tim Willey. It’s a Lot Harder to Build a SaaS Decacorn Than It Used To Be. Don’t Hire a VP of Sales Everybody Loves. Top Videos This Week: 1.

Sales Hiring 264

Sales Hiring Leadership Innovation Retention 264

SaaStr

MAY 23, 2022

— Sam Blond (@samdblond) May 19, 2022. Some of your churn you really can’t do anything about, but at least half the time, you can save the customer if you just show up or show up more often. Spot on as always. Maybe 1 exception – cut your bottom performing rep(s) and give their leads to better performers. And stick to it.

Sales Hiring 325

Sales Hiring Management Airlines Venture Capital 325

SaaStr

OCTOBER 14, 2022

It’s no secret that 2022 has brought market shifts that even the previous two years lacked. But in 2022, there is a new focus on efficiency. But if you target SMBs with a higher churn, aim for 12 months or less. As always, investors still have high-growth expectations, which have not changed. Key Takeaways.

Startup 246

Startup SaaS Metrics Churn 246

Totango

MARCH 8, 2022

Here’s our guide to the top customer success communities in 2022 and what they have to offer. Then, we’ll walk you through a list of nine of the best customer success communities you can join in 2022 and what each of them has to offer. Nine Best Customer Success Communities in 2022. Gain Grow Retain.

Customer Success 122

Customer Success Technical Review Social Media Underperforming Technical Team 122

SaaStr

SEPTEMBER 9, 2022

Sales reps in low NRR and high churn environments got paid almost the same as enterprise reps. Startups that just accepted compressed ROI on sales commissions ended up pretty stressed in 2022. Many SaaS companies just agreed to higher OTEs, but packaged them with higher quotas as well. This makes no sense. For a little while.

Scale 345

Scale Venture Capital Sales Hiring Sales 345

SaaStr

MARCH 2, 2022

Make it harder to leave, churn looks better this month and quarter. Make it easier to leave, churn looks better 2-3 years out. jasonlk) February 28, 2022. — Jason BeKind Lemkin #???????????? So Zoom could never grow forever at the truly insane rates it grew the past 2 years.

SMB 244

SMB Enterprise Churn Branding 244

User Pilot

MAY 10, 2022

The churn prevention strategies discussed in this article will help with your product engagement strategy. In addition, you’ll also learn how to calculate churn for your SaaS and see the three main reasons why SaaS customers stop interacting with your product and what you can do to prevent that. Churn explained.

Churn 98

Churn Strategy SaaS Engagement 98