Tom Tunguz

NOVEMBER 12, 2023

Compare that to the benchmarks in 2013! Salesforce barely budged, perhaps an indicator of how labor-intensive the business is or how much the revenue growth has been through acquisition (Slack, Mulesoft, & Tableau). Snowflake is second, pushed by their best-in-class net dollar retention (NDR). In addition to the dated charts!

Software Review 331

Software Review Trends Revenue Software 331

Casey Accidental

JUNE 9, 2020

These plans included a lot of the goals you likely have in your company: improvements in acquisition, activation, and retention. Retention is not only the primary measure of product value and product/market fit for most businesses; it is also the biggest driver of monetization and acquisition as well.

Retention 145

Retention Benchmarks Payments Payment Methods 145

SaaStr

SEPTEMBER 20, 2023

Discover Bessemer Venture Partners’s annual State of the Cloud report, going through trends, benchmarks, and metrics that underpin the Cloud economy. Announcements of several blockbuster acquisitions, most notably from Adobe acquiring Figma, which was the highest valuation multiple offered in an acquisition for any software company at scale.

Cloud 311

Cloud Payments Software Review Payment Solutions 311

User Pilot

SEPTEMBER 2, 2024

Userpilot’s SaaS Product Metrics Benchmark Report has found that compared to other industries, healthcare SaaS companies perform lower across most of the 6 metrics we studied. Companies by industry analyzed in our Product Metrics Benchmark Report 2024. Companies by industry analyzed in our Product Metrics Benchmark Report 2024.

Healthcare 105

Healthcare Benchmarks Metrics Onboarding 105

SaaStr

NOVEMBER 5, 2021

Including free acquisition and viral acquisition obscures underlying (in)efficiencies. The classic example is a VP of Marketing claiming tons of credit for terrible programs that don’t work where the underlying free and word-of-mouth acquisition is very strong. And IVP has published some data to help you benchmark it.

Scale 299

Scale SaaS Acquisition Benchmarks 299

Tom Tunguz

DECEMBER 16, 2021

Tokens are the paid customer acquisition channel of web3. By analyzing how web3 companies invest tokens, we can calculate the cost of customer acquisition (CAC) for a crypto company. We can benchmark them relative to their corporate value. L1 Web3 companies spend 29-95%. Percentile. Or sales and marketing spend.

Venture Capital 274

Venture Capital Blockchain Acquisition Benchmarks 274

Tom Tunguz

SEPTEMBER 16, 2017

This is a very nuanced question, but benchmarks do provide some guidance for what is reasonable. I also assume that sales represents 65% of customer acquisition cost, which is true for inside sales models according to the survey. How much should a SaaS startup invest in sales and marketing at different stages of the business?

Investment 274

Investment Startup Marketing Sales 274

FastSpring

APRIL 26, 2022

In part one, we cover benchmarks and common churn formulas. Part I: SaaS Churn Benchmarks Part II: 5 Proven Strategies for Reducing SaaS Churn Part III: Churn Definitions and Additional Resources. Part I: SaaS Churn Benchmarks. When we set churn benchmarks for SaaS companies, there’s so much to consider.

Benchmarks 147

Benchmarks Churn Payments SaaS Payments 147

Baremetrics

JULY 7, 2021

For every decision-maker in a SaaS company, understanding SaaS financial benchmarks makes a proper interpretation your internal performance metrics possible. All the data your startup needs 1 What are SaaS financial Benchmarks? 2 Why use SaaS Financial Benchmarks? 2 Why use SaaS Financial Benchmarks? Table of Contents.

Benchmarks 105

Benchmarks SaaS Payments SaaS Payments 105

User Pilot

JULY 14, 2024

That’s one of the questions about user activation rates that we explore in our Product Metrics Benchmark Report 2024. Companies analyzed in the Product Metrics Benchmark Report by industry. The average activation rate across the companies we studied for our SaaS Product Metrics Benchmark Report was 37.5. Book the demo!

Benchmarks 105

Benchmarks Scale Onboarding Metrics 105

User Pilot

JUNE 11, 2024

That said, let’s explore the most critical product marketing metrics to track, along with the latest benchmarks in 2024: Check out the 2024 Benchmark Report. Let’s explore the most important metrics (you can check their benchmarks here ): User activation rate : Measures how effectively onboarding converts new users into active users.

Benchmarks 102

Benchmarks Product Marketing Metrics Marketing 102

User Pilot

JULY 14, 2024

That’s the average core feature activation rate across the companies we studied for our Product Metrics Benchmark Report 2024. This figure doesn’t give you a full picture because it doesn’t take into account the industry, company size, or acquisition model. Companies by industry analyzed in our Product Metrics Benchmark Report 2024.

Benchmarks 105

Benchmarks Artificial Intelligence Underperforming Technical Team Onboarding 105

User Pilot

JULY 21, 2024

These are the key questions we explore in the article based on our recent Product Metrics Benchmark Report 2024 which investigates company performance in 6 different metrics across 7+ industries. Companies analyzed in the SaaS Product Metrics Benchmark Report 2024 by industry. Check out our Product Metrics Benchmark Report 2024.

Benchmarks 105

Benchmarks Onboarding Healthcare Metrics 105

Clouded Judgement

JUNE 19, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Inturact

NOVEMBER 25, 2019

Do you know if your product’s Free Trial is hitting industry conversion benchmarks? This article will help you determine just how much is being potentially lost and make sure you’re picking the right type of trial for your customer acquisition model. If not, you could be leaving a lot of money on the table.

Benchmarks 18

Benchmarks Acquisition SaaS Retention 18

User Pilot

JULY 18, 2024

According to our latest NPS benchmark report, the average NPS in SaaS is 35.7. But how does your business fare against these product metrics benchmarks? Let’s explore our product metrics benchmark and learn: What NPS is and why it’s important for SaaS businesses. You can download our product metrics benchmarks here.

Benchmarks 105

Benchmarks Healthcare Technical Review Scale 105

User Pilot

NOVEMBER 29, 2024

But don’t worry – we’ll show you how to optimize your product metrics for growth, and more importantly, which to prioritize between acquisition, conversion, and retention. You’ll want to track these core events and set clear benchmarks. Focus on acquisition when: You’ve achieved strong retention and conversion.

Metrics 105

Metrics Scale Acquisition Retention 105

The Angel VC

MAY 8, 2015

In my post I suggested that you should prepare a key metrics spreadsheet, a chart with your MRR movements, a cohort analysis, a financial plan, an analysis of your customer acquisition channels and, if you're selling to bigger customers, information about your sales pipeline and details about your largest customers. Organic, paid, both?

Development Team Review 252

Development Team Review Software Review Scale Acquisition 252

User Pilot

JULY 19, 2024

One way to measure your Martech product success is by using benchmarks to compare its performance to similar products. These are the metrics we used to analyze the performance of 547 SaaS companies from 7+ industries in our SaaS Product Metrics Benchmark Report 2024. Higher NPS is also linked to lower customer acquisition cost.

Benchmarks 105

Benchmarks Metrics Scale Customer Lifetime Value 105

Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

User Pilot

AUGUST 30, 2023

With many customer acquisition channels available, how do you choose the right one? Read on to find the best acquisition channels for your SaaS and how to create winning customer acquisition strategies that drive growth. TL;DR Customer acquisition is the process of attracting and converting new customers into paying customers.

Acquisition 105

Acquisition Strategy Social Media Customer Lifetime Value 105

Chart Mogul

SEPTEMBER 8, 2021

The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021. Tech is on fire … The software M&A (mergers and acquisitions) market saw its best year yet in 2020, and it’s on track to see another record year in 2021.

Scale 96

Scale Acquisition Scaling Sales Hiring 96

User Pilot

JUNE 16, 2024

Looking for reliable metrics benchmarks to gauge your product performance and inform your decisions? That’s what you can find in Userpilot’s Product Metrics Benchmark Report. Why should product teams read this benchmark report? We also share 6 key insights for product managers that we found particularly interesting.

Benchmarks 81

Benchmarks Metrics Sales Recruiting Acquisition 81

Kellblog

MARCH 1, 2025

You might argue that’s a good overall marketing efficiency metric and try to benchmark it. But those benchmarks will be hard to find. Because there’s a better overall marketing efficiency metric: the marketing customer acquisition cost (CAC) ratio = (last-quarter marketing expense)/(this-quarter new ARR).

Sales Hiring 72

Sales Hiring Benchmarks Metrics Startup 72

Tom Tunguz

NOVEMBER 8, 2017

Founders often describe their unit economics in terms of their LTV/CAC ratio - the ratio of the Lifetime Value (LTV) of a customer to the Cost of Customer Acquisition (CAC). The LTV/CAC metric can be a powerful metric to unpack the health of the go-to-market team of a company, as Netsuite has shown.

Startup 189

Startup Forecasting Benchmarks Acquisition 189

InsightSquared

JULY 1, 2019

In this new and expanded 2019 benchmark study , we revisit today’s marketing automation platforms and dig deeper into the quality of reporting, nature of the insights, and the impacts these platforms continue to have across the B2B community. Remains true. True, and marketing accountability has only increased.

Benchmarks 21

Benchmarks Scale Marketing B2B 21

User Pilot

JUNE 30, 2021

The average conversion rate from your SaaS free trial has a big impact on your product’s growth and blindly f ollowing benchmarks is not the best way to focus your efforts. SaaS free trial conversion rate benchmarks. All that is left is to go ahead and double down on your acquisition! Table of Contents. Conclusion.

Benchmarks 98

Benchmarks B2C SaaS Software Review 98

Baremetrics

MARCH 23, 2021

When looking at metrics and benchmarks for SaaS companies , the quality of their landing page is a big part of what starts people moving down the sales funnel. Other concerns affect these rates of conversion as well and studying all of them with the proper benchmarks in place; makes it easier for every company to succeed.

Benchmarks 75

Benchmarks SaaS Social Media Sales Funnel 75

Chart Mogul

OCTOBER 3, 2019

The customer acquisition cost can help you create, measure, and improve a business model that will put your business on the path to profitability. This is where the value of subscription metrics comes to the fore — and specifically the customer acquisition cost (CAC) and the customer lifetime value (LTV). Your technical infrastructure?

Acquisition 91

Acquisition Underperforming Technical Team Startup Customer Lifetime Value 91

ChurnZero

APRIL 11, 2025

User adoption drives down user acquisition costs, stretches marketing resources, increases customer lifetime value, and brings flexibility to your teams product resource investments. You aim to identify whats important to the customer, set expectations, and measure success. But how do you know if your onboarding tactics really work?

Onboarding 86

Onboarding Strategy Technical Review Systems Review 86

OpenView Labs

NOVEMBER 16, 2021

Customer Acquisition Cost (CAC). 4 SaaS Customer Acquisition Best Practices. David Skok shares four best practices for improving your customer acquisition strategy and leading the way to scalable growth. 9 Sales Benchmarks that Can Help You Build a Scalable Sales Machine. A Warning Note about Benchmarks.

Benchmarks 71

Benchmarks Scale Metrics Sales Recruiting 71

Tom Tunguz

NOVEMBER 10, 2013

To help inform those decisions, I’ve benchmarked the relative sizes of the sales and engineering teams of the 36 publicly-traded SaaS companies from founding to IPO, typically 7 years later. The graph above shows the average Sales & Marketing allocation in turquoise and Research & Development investment in red.

Engineering 176

Engineering Startup Sales SaaS 176

The Angel VC

NOVEMBER 29, 2013

In order to succeed you need happy customers who do free marketing for you, otherwise customer acquisition will always be an uphill battle. Therefore you’ll have to focus on the relationship between your CLTV and your CACs (customer acquisition costs), your CLTV/CAC ratio, which measures the ROI on your sales and marketing investments.

Scale 190

Scale Startup SaaS Customer Lifetime Value 190

Tom Tunguz

OCTOBER 13, 2018

Earlier this year, I wrote about MadKudu’s analysis of free trials and asked if readers were interested in another benchmarking survey on the topic, and the response was overwhelming. I’d like to thank Ryan Janssen for lending a hand. In addition, the use of these marketing tactics spans the contract value gamut.

Software Review 140

Software Review SaaS Benchmarks Acquisition 140

Clouded Judgement

OCTOBER 3, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. I’ve looked at thousands of private companies, and over time have come up with benchmarks for best-in-class, good, and subpar net revenue retention. net retention and CAC payback).

Cloud 167

Cloud Software Benchmarks Retention 167

OPEXEngine

APRIL 26, 2022

Well, capturing as much total available market (TAM) makes growing your business through customer acquisition necessary. What is Customer Acquisition Cost (CAC)? Customer acquisition cost (CAC) is arguably one of the most important metrics for fast-growing B2B SaaS companies. So why even bother?

Acquisition 59

Acquisition B2B Benchmarks SaaS 59

SaaStr

MARCH 28, 2025

For SMB SaaS, aim for 6 quarters of LTV:CAC, not 4 Ren adjusted the traditional benchmark because SMB customers stay longer than typically measured. Your suppliers might actually be your customers 30% of Bill.com’s core revenue comes from suppliers making payment choices, completely reframing their TAM calculations.

SMB 130

SMB Payments Payment Services SaaS Payments 130