SaaStr

NOVEMBER 4, 2021

The “Rule of 40” is one of the most commonly cited valuation benchmarks in SaaS for both public and private companies. While SaaS is an amazingly transparent community with abundant benchmarking resources, there are much fewer publicly available studies that allow an analysis of the underlying drivers of “Rule of 40.”

SaaS 319

SaaS Technical Review Benchmarks Azure 319

Clouded Judgement

JUNE 19, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Tom Tunguz

MARCH 18, 2019

This is the value of a cohort a year later inclusive of churn and expansion. Let’s compare PagerDuty to other recent software IPOs for companies selling to engineers at their IPO. Let’s first look at one of the key SaaS metrics: the dollar attention. PagerDuty is at 139%, which puts it smack in the midst of an exceptional group.

Metrics 222

Metrics Benchmarks Software Review Engineering 222

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 Get deep insights into your company's MRR, churn and other vital metrics for your SaaS business. 2 Why use SaaS Financial Benchmarks?

Benchmarks 105

Benchmarks SaaS Payments SaaS Payments 105

SaaStr

APRIL 4, 2025

The most successful companies recognize that fantastic docs drive adoption and bad ones cause customers to churn. Their performance benchmarks showing 10x query throughput compared to self-hosted options were eye-opening. The Numbers : Processing 1.2B vector queries daily. 230+ enterprise customers including three Fortune 50 companies.

AI Search 177

AI Search AI Startup Scale 177

Tom Tunguz

APRIL 14, 2020

The data is insightful both as a tool for benchmarking your own company and also to understand the mentality of sales leaders in this challenging time. About 54% of respondents have seen higher churn; the other half has seen no change. I’ve known Sam a long time and he’s done remarkable work with this community.

Sales Hiring 334

Sales Hiring Sales Forecasting Travel 334

Chart Mogul

JANUARY 22, 2021

In this blog post, we have collected everything you need to know about churn — along with links to the best resources on the internet. You’ll never need to visit another site to learn about churn. Now you know — just mention churn. Definition of churn. Churn is a concept specific to subscription businesses.

Churn 136

Churn SaaS Benchmarks Payment Features 136

Baremetrics

AUGUST 20, 2021

We built the Baremetrics Benchmarks feature to answer these questions. We collected data from 800+ small and medium sized subscription companies using Baremetrics, anonymized it, and aggregated it to provide benchmark data for key metrics and subscription pricing. Where does the benchmark data come from? Table of Contents.

Benchmarks 97

Benchmarks Payment Features Subscription Churn 97

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

Casey Accidental

JUNE 9, 2020

For example, all of your friends on Facebook or all of your co-workers on Slack makes it hard to churn from either product whereas churning from Calm or Grammarly is entirely up to you. * BONUS: Why are Casey’s benchmarks for consumer transactional businesses lower than others?

Retention 145

Retention Benchmarks Payments Payment Methods 145

SaaStr

DECEMBER 13, 2023

13: Mis-benchmarking. Some benchmarks are highly biased. Instead, benchmark by aspiration. If the VP of Customer Success says all customers who churned had multiple escalations because they didn’t have enough agents, so they hired more agents, that might be correct. This is when you are comparing to the wrong companies.

Metrics 340

Metrics Sales Hiring Benchmarks SaaS 340

User Pilot

NOVEMBER 27, 2023

Wondering how churn rate vs retention rate are different? Other important metrics related to churn and retention efforts. Ways to analyze churn and improve retention rates based on the data. The churn rate refers to the percentage of customers discontinuing their subscriptions during a given time period.

Churn 102

Churn Retention Benchmarks Customer Lifetime Value 102

User Pilot

JULY 21, 2024

According to our benchmark, the average month-1 retention rate in SaaS companies is 46.9%. Let’s explore our product metrics benchmark and learn: The definition of month-1 retention rate and why it matters. Offer consistent customer support : An in-app resource center and well-organized knowledge base reduce friction and prevent churn.

Benchmarks 105

Benchmarks Retention Healthcare Scale 105

User Pilot

JULY 18, 2023

Tracking your customer churn rate will help you keep tabs on business growth. You will have data sets for analyzing your churn/retention history, which will better position you to make intelligent business decisions. Types of churn rates you should calculate: customer churn rate, revenue churn rate , and involuntary churn rate.

Churn 98

Churn SaaS Payments Payments Payment Solutions 98

Baremetrics

FEBRUARY 15, 2021

Confused about customer churn vs. revenue churn? Churn means lost money or lost customers. These metrics help you understand two different things: Customer churn — the number of people you've lost. Revenue churn — the amount of revenue you've lost. Customer churn = customers lost. Revenue churn = money lost.

Churn 105

Churn Payments Revenue SaaS Payments 105

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

NOVEMBER 17, 2022

We track your progress and provide monthly executive level reporting on achievement against industry-recognized benchmarks and best practices. Upzelo helps you fight churn and increase retention through real-time data, customised offers and better customer feedback. We are not like other banks.

Banking 263

Banking Payment Features Venture Capital Subscription 263

Clouded Judgement

APRIL 4, 2024

There’s a lot of info to digest, so in the sections below I’ll try and pull out the relevant financial information and benchmark it against current cloud businesses. ” Benchmark Data The data shown below depicts how the Rubrik data compares to the operating metrics of current public SaaS businesses.

Benchmarks 120

Benchmarks Data Cybersecurity Cloud 120

The Angel VC

MAY 8, 2015

As a caveat, I'm going to mention some benchmark numbers but it's very important to note that none of these numbers can be viewed in isolation. What's your account churn rate and more importantly your MRR churn rate ? The best SaaS companies have an account churn rate of less than 1.5%

Development Team Review 252

Development Team Review Software Review Scale Acquisition 252

Totango

DECEMBER 28, 2021

Knowing how to fight customer churn is critical for keeping SaaS business models sustainable. The more customers you lose to churn, the more you have to invest in new customer acquisition to maintain your revenue, and the harder it becomes to grow your business. Here we’ll look at four proven strategies for reducing customer churn.

Churn 102

Churn Strategy Technical Review Benchmarks 102

User Pilot

NOVEMBER 28, 2022

Churn is the enemy of product growth. A churned user means lost future revenue and a waste of the resources it took to acquire them. How do you lower your churn rate and make sure all your users stick around? In this article, we’ll show you: What customer churn is and why it matters. Let’s get started.

Churn 98

Churn Software Review SaaS User Experience 98

User Pilot

JANUARY 31, 2023

Wondering what customer satisfaction benchmarking is in SaaS and how your business compares to other SaaS companies? In this article, we go in-depth about customer satisfaction benchmarks and how you can measure and improve it. In the SaaS industry, the NPS benchmark is around 40. What is customer satisfaction benchmarking?

Benchmarks 98

Benchmarks SaaS Retention Metrics 98

User Pilot

MAY 5, 2022

Churn analytics helps you detect your product friction points and understand why users stop using the tool. This is crucial if you want to know how healthy your SaaS product is and what should be improved to increase customer retention and lower the churn rate. A churn rate over 10 % indicates trouble. What is churn analytics?

Churn 98

Churn Retention Subscription Payment Features 98

SaaStr

JUNE 22, 2021

In the report, they pursue the latest customer success trends and predictions, including significant challenges, top goals, team organization, key benchmarks, compensation and various technologies. . No longer is CS so heavily focused on churn alone. Rapid Onboarding (The First Value). Growing Value Through Nurturing.

Scale 281

Scale Customer Success Scaling Compensation 281

Chart Mogul

MARCH 1, 2023

We really like this metric because it encapsulates both the business’s ability to retain — so minimizing churn — and also their ability to upsell. See chapter 2 in the report to learn more about net retention benchmarks. That’s because, in B2C, churn is higher and expansion is lower. In contrast, 41.1%

Benchmarks 98

Benchmarks Retention B2C Business 98

Tom Tunguz

NOVEMBER 8, 2017

If a business suffers from a very high churn rate, then, yes, it’s possible to calculate LTV in just a few years. But most software companies will see 10% or less unit churn per year. At 10% unit churn, three years from now, 73% of customers will still be paying, adding to their LTV. How long will those customers stay?

Startup 189

Startup Forecasting Benchmarks Acquisition 189

SaaStr

MARCH 17, 2020

The company also unveiled ProfitWell Benchmarks to see how your company stacks up against similar firms. Head over to profitwell.com or profitwell.com/benchmarks to learn more about the announcements. announced “Tray Embedded,” a solution that helps companies quickly scale product integrations. Chargify.

Sales Hiring 235

Sales Hiring Scale Payment Features Marketplace as a Service 235

Tom Tunguz

FEBRUARY 2, 2020

It measures the value of a cohort of customers over time including expansion, cross-sell, and churn (loss of revenue). And the third principle is to benchmark your business to others who measure themselves in the same way. Net Dollar Retention is one of the most important metrics is a SaaS business. But how do you measure NDR?

Retention 235

Retention Benchmarks Revenue Churn 235

ChurnZero

DECEMBER 6, 2021

All SaaS companies can expect some level of customer churn. An upward trend in customer churn rate indicates a serious problem for your business both monetarily and reputationally. That’s why performing a customer churn analysis can be powerful in the endeavor to increase customer retention. What is Customer Churn Rate ?

Churn 98

Churn Software Review Trends Retention 98

ChurnZero

JUNE 2, 2021

SaaS Capital joined us for a webinar to share the results from their 10th annual B2B SaaS benchmarking survey. We’ve seen in the data that there’s higher churn. They just need to be aware of it and that’s why this kind of thing is helpful with the benchmarking data that you can compare.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

SaaStr

FEBRUARY 14, 2024

Today we’re focusing on actionable insights you can use to drive down churn with customer success in today’s new era of SaaS efficiency. This is great news because onboarding is one of the best ways to bring down churn for SMBs. If someone never starts or uses the product, they’ll churn.

Customer Success 302

Customer Success Sales Hiring Scale Headcount 302

User Pilot

JUNE 22, 2023

Wondering how to reduce churn rate and increase retention? While customer churn is a grave concern, retention is what can help you tackle it and make your product successful. So, efforts to simultaneously reduce churn rate and increase retention are the formula to your product’s success. What is customer churn?

Churn 98

Churn Retention Onboarding Engagement 98

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. SaaS free trial conversion rate benchmarks. Table of Contents. Conclusion. No coding required!

Benchmarks 98

Benchmarks B2C SaaS Software Review 98

User Pilot

AUGUST 10, 2023

Benchmarking this crucial metric against your industry helps you assess your standing relative to your competition. In this article, we’ll delve into the ins and outs of CAC, its industry-specific benchmarks, and the proven practices to improve it. Ideally, the CAC should be around 1/3 or 1/4 of the LTV.

Acquisition 96

Acquisition Benchmarks Customer Lifetime Value B2B 96

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. The first few months of this year felt like a lot of churning in the market. Not surprisingly, these benchmarks match up relatively well with the numbers public companies reported. net retention and CAC payback).

Cloud 184

Cloud Software Azure AWS 184

Clouded Judgement

OCTOBER 3, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 167

Cloud Software Benchmarks Retention 167

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. It is calculated by taking the annual recurring revenue of a cohort of customers from 1 year ago, and comparing it to the current annual recurring revenue of that same set of customers (even if you experienced churn).

Cloud 184

Cloud Software Benchmarks Retention 184