Clouded Judgement

APRIL 12, 2023

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

Clouded Judgement

JUNE 20, 2023

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 Scale 167

OPEXEngine

MAY 18, 2021

SaaS metrics are viewed differently at different stages of growth and for different sales models, primarily whether a company is selling into an SMB or enterprise marketplace. ARR is an essential subscription metric that identifies the recurring revenue expected on an annual basis from the subscriber base. Usage Fee-Based ARR.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

Clouded Judgement

DECEMBER 20, 2022

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 130

Cloud Software Review Software Benchmarks 130

Payrix

MAY 14, 2024

Before joining Worldpay for Platforms, he was CRO at Chargebee, a subscription revenue management platform that manages billing subscriptions and payments for companies throughout the world. I mean, we have a PayFac customer right now, that’s transitioning their whole payments model. So that’s one bucket.

Payments 147

Payments Payment Services Payment Solutions SaaS Payments 147

OPEXEngine

JUNE 11, 2020

Sometimes companies only include recurring revenues when they talk about bookings or billings, but they also sell Professional Services (and must book and bill them somehow). Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS, Subscription, and On-Premise Software: Don’t Confuse Subscription with SaaS.

SMB 59

SMB SaaS Benchmarks Payment Features 59

User Pilot

JULY 18, 2023

TL;DR Customer churn is the rate at which users discontinue their subscription or stop using a particular product or service. Here are other metrics subscription-based companies should track alongside churn: Customer retention rate. Monthly recurring revenue. Poor onboarding. Bad customer service. Weak customer relationships.

Churn 98

Churn SaaS Payments Payments Payment Solutions 98

Brian Balfour

MARCH 21, 2017

Most growth communities, forums, and email lists will inevitably have that thread that goes: “Hey, what are the benchmarks everyone’s seeing for X?” I constantly find people seeking out benchmarks or pointing to benchmarks, and we’ve all been there -- who doesn’t want some normalizing data to understand whether we’re on track or not?

Benchmarks 40

Benchmarks Business Model Acquisition Payment Features 40

Chart Mogul

FEBRUARY 19, 2021

It is a question of strategic importance for SaaS companies because of how the subscription model works. In our example, we’re assuming a small number of customers who are mostly paying the same monthly subscription. Benchmarking provides the best answer to this question. If you have poor retention, nothing else matters.

Retention 72

Retention Churn Benchmarks SMB 72

OPEXEngine

JUNE 23, 2021

The CAC Payback Period, also known as Months to Recover Customer Acquisition Cost (CAC), measures the number of months of subscription revenue it takes to recover the costs to acquire one customer. Adding gross margin to the equation shows the cost of acquisition AND delivering the subscription, which is also a valid measurement.

Benchmarks 52

Benchmarks Acquisition SMB Payment Features 52

OPEXEngine

NOVEMBER 17, 2020

Subscription companies have to have a policy about when customers who have not renewed their subscription contract are no longer existing customers, and if they do resubscribe, they are now new customers. For monthly subscriptions, it may be the day after the subscription expiration.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

Sales Hacker

NOVEMBER 15, 2017

Annual Recurring Revenue (ARR) is the value of contracted, often subscription-based revenues normalized for one calendar year. It is called Annual Contract Value (ACV) when annualized and Average Purchase Value (APV) when the revenue derived is not subscription-based. Gatekeeper. General Manager. Global Business Unit.

Scale 105

Scale Payment Methods Sales Recruiting SaaS Payments 105

Baremetrics

JANUARY 24, 2021

Anyone managing a SaaS or subscription business is aware of customer churn. This is when the good stuff starts to happen within a subscription business In this post I’m going to share the strategy and steps we followed to reduce our monthly customer churn by over 70%, and explain how we positioned Nudge Coach for efficient, long-term growth.

Churn 71

Churn SaaS Payments Payment Methods Payment Solutions 71

ChurnZero

MARCH 18, 2022

It’s subscription growth margin, which plays into CAC payback period. CAC payback period is how many months of subscription gross profit does it take to pay back your customer acquisition costs? Q: What metrics do boards and investors care about most? A [Dave]: For a company, it’s ARR and ARR growth.

Customer Success 98

Customer Success Metrics SaaS Banking 98

Chart Mogul

FEBRUARY 19, 2021

It is a question of strategic importance for SaaS companies because of how the subscription model works. In our example, we’re assuming a small number of customers who are mostly paying the same monthly subscription. Benchmarking provides the best answer to this question. If you have poor retention, nothing else matters.

Retention 52

Retention Churn Benchmarks SMB 52

ChurnZero

JUNE 19, 2020

The debt markets did not lend into the software industry up until the mid-2000s, and it was about the collateral of the recurring maintenance and support stream. Now, it’s the recurring stream that’s related to the subscription revenue. We’ve had a hard time with the businesses that sell into the SMB.

SaaS Payments 72

SaaS Payments Retention Metrics Payment Solutions 72

OPEXEngine

FEBRUARY 22, 2022

SMB customers will want high-touch sales engagement and service delivery but SMM SaaS companies will likely not have the budget necessary to justify providing this level of sales support. The Inside Sales representative then reaches out to each interested customer and attempts to move them to a paid subscription.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

OPEXEngine

MAY 12, 2020

Based on historical experience, we forecast large enterprise-focused vendors sustaining renewal rates significantly better than SMB focused models, and subscriptions priced on infrastructure/data levels sustaining better than seat-based models.”.

Technical Review 59

Technical Review SaaS Software Review Sales Hiring 59

Chart Mogul

SEPTEMBER 15, 2023

Benchmarks across the PLG user journey The hardest part of PLG might actually be… marketing?! Software subscriptions are the life of every SaaS business and must be accounted for properly in your general ledger. That is SaaS subscription revenue and the corresponding deferred revenue balance. Forget about Threads.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

SmartKarrot

FEBRUARY 9, 2022

However, it includes any downgrades or cancellations of subscriptions or contracts. GRR is the measure of recurring revenue from existing customers; hence it is also commonly called Gross Renewal Rate. Churn refers to the loss of revenue due to customers who canceled their subscription or ended their contract with the business.

Retention 10

Retention Revenue SaaS Benchmarks 10

Sales Hacker

OCTOBER 7, 2021

Cassie spent the first pre-SaaS chapter of her tech career in growth roles in subscription and marketplace businesses (TheLadders.com, GLG). It took me a long time to admit to myself that I don’t enjoy transactional SMB sales. Cassie is a graduate of Duke University and holds an MBA from the Tuck School of Business at Dartmouth.

Scale 137

Scale Sales Recruiting Sales Hiring VP of Engineering 137

OPEXEngine

SEPTEMBER 10, 2020

Many are experimenting with changing subscription lengths to accommodate new customers and conversely, extending contracts beyond 12 months to lock in enterprise customers. At the same time, some enterprise SaaS companies are working to lengthen subscription terms beyond 12 months where they can lock customers in now.

Payment Services 59

Payment Services SaaS Payments Trends Payment Solutions 59

Clouded Judgement

APRIL 9, 2025

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 157

Cloud Software Benchmarks Retention 157

SaaStr

FEBRUARY 19, 2025

The Math Behind Great GRR Target these benchmarks: Enterprise SaaS: 90-95% GRR Mid-market: 85-90% GRR SMB: 80-85% GRR Anything less? Without it, you’re essentially building a CS organization on quicksand. The Real Way to Calculate UFR First, let’s get tactical. You’ve got fundamental problems to fix.

Customer Success 113

Customer Success Metrics Systems Review Technical Review 113

Kellblog

JUNE 17, 2023

Those who find SaaS benchmark reports as impenetrable as James Joyce. While some SaaS benchmarks include a broad mix of VC-backed, founder bootstrapped, and PE-owned SaaS companies, SaaS benchmarks produced by VC firms generally include only those firms who tried to raise VC — i.e., the moonshots or at least wannabe moonshots.

Scale 127

Scale Sales Benchmarks Consulting 127

SaaStr

MAY 8, 2025

Top 3 Hot Takes: Benchmark’s famous 10% hit rate is actually proof the VC model is broken for everyone else. Early stage VCs aren’t “partners” they’re just subscription salespeople for their growth funds. As soon as AI is even 80% as good as a human, theyre all gone.

AI 186

AI Venture Capital Scale Benchmarks 186