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 Subscription 136

User Pilot

SEPTEMBER 19, 2023

As your business grows and your focus shifts from acquiring new customers to retaining existing ones, churn prediction becomes an invaluable tool in your toolkit. Accurate churn prediction models help you improve the customer experience and prevent voluntary customer departures. What is churn prediction?

Churn 105

Churn Artificial Intelligence Machine Learning Data Analysis 105

Baremetrics

OCTOBER 21, 2020

Revenue churn answers the question: how much MRR did we lose last month? Your answer says a lot about the long term health of your company as a SaaS or subscription business. The SaaS business model is built on the concept of retaining as much of your monthly recurring revenue (MRR) as possible. Try Baremetrics Free.

Churn 118

Churn Revenue Benchmarks Subscription 118

SaaStr

JUNE 22, 2023

SaaStr Trying to pursue a “Grass is Greener” business model. SMB folks want to go upmarket because there is too much churn in SMB. Perhaps most importantly these days, “PLG” does not magically make a business model work, or a product magically sell itself. Don’t Forget the 20 Interview Rule. The team is.

SMB 274

SMB SaaS B2C Interviewing 274

SaaStr

JUNE 5, 2020

With the Salesforce IPO in 2004, we saw the first sign that institutional investors were comfortable with a standard set of SaaS metrics: Churn, sales efficiency , ARPU, LTV, customer acquisition cost , and so on. . Salesforce’s IPO is also seen as a test of a new business model that could shake up the software industry.

Venture Capital 297

Venture Capital Technical Review Scale SaaS 297

SaaStr

FEBRUARY 27, 2021

There’s a lot to talk about in customer success about churn, and about upsells. Together, they are one of the most critical topics in recurring revenue business models.

Business Model 347

Business Model Customer Success Churn Software 347

SaaStr

MARCH 30, 2024

Bad operational model / misunderstanding the burn rate. Often, you can sort of intuit the business model up to $1m or $2m or so in ARR. If you don’t model it properly (and often for the first time) — your burn can creep up on you, no matter how carefully you think you are managing expenses. And stymie all of them.

Scaling 301

Scaling Revenue Underperforming Technical Team Market Segmentation 301

Totango

JANUARY 23, 2020

You are not powerless in the face of churn. There are almost always indicators that a customer is going to churn, which means that if identified early, a good Customer Success team can mitigate the risk and execute a successful recovery plan. Think of churn like a risk that can be negotiated like any other. . Why Churn Matters.

Churn 111

Churn Enterprise Strategy Management 111

SaaStr

FEBRUARY 14, 2021

One con is that these businesses often are tougher to gain a longer-term competitive advantage in unless there is a network effect (e.g., But from a business model perspective, why invest in sales, demand gen, and all that if you don’t have to? The key is a combination of (x) churn and (y) value.

Revenue 261

Revenue Sales Hiring Customer Lifetime Value Churn 261

Totango

SEPTEMBER 1, 2020

To paraphrase the famous saying, there are only two things that are certain in business: churn and taxes. And, in the case of churn at least, by learning from what you cannot avoid you can prevent yourself from suffering any loss that will do real harm. What Causes Churn? Every business suffers churn.

Churn 111

Churn Construction Leadership Customer Success 111

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. Invest in Your Customer Success Team.

Churn 102

Churn Strategy Technical Review Benchmarks 102

SaaStr

SEPTEMBER 9, 2022

Not a bad thing per se, but it also put a lot of pressure on business models. Sales reps in low NRR and high churn environments got paid almost the same as enterprise reps. SaaS companies and fintechs and pseudo-SaaS companies could end up paying out more than the entire year’s margin in the commission check.

Scale 345

Scale Venture Capital Sales Hiring Sales 345

SaaStr

APRIL 14, 2023

If you aren’t sure if you have a rock-solid value prop, look at churn, revenue, and even the ability or inability to raise funds. Investors want to know about metrics, the drivers of your business, and whether users are growing, engaged, or churning. This business models assume the end user knows how to use it.

Development Team Review 261

Development Team Review Technical Review Underperforming Technical Team SMB 261

SaaStr

APRIL 30, 2024

Early churn was a massive drag on efficiency. They needed to get their hands on early churn. This led to fairly unsustainable levels of churn of early churn. So Kyle paused the Growth plan that was already in place until they got churn in a better place. Let’s look at a loose timeline of Owner’s journey.

Scale 301

Scale SMB Sales Hiring Sales 301

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

SaaStr

JULY 5, 2023

But those accounts grow dramatically over time, and don’t really churn. And here you can see the magic in Mongo’s business model. Wow, just an epic product, CEO, business model, and success story. New workloads, new uses of Mongo are actually just a small percent of revenue. New Customer Count Up 24%.

Scale 242

Scale cloud efficiency Cloud Business Model 242

SaaStr

JUNE 22, 2021

No longer is CS so heavily focused on churn alone. When they enjoy their experience, they’ll possibly refer other buyers or expand their business with your company. When they enjoy their experience, they’ll possibly refer other buyers or expand their business with your company. Customer success is a business model for growth.

Scale 278

Scale Customer Success Scaling Compensation 278

SaaStr

OCTOBER 31, 2023

With nine figures in revenue, Ariel and SaaStr founder and CEO Jason Lemkin talk about all things Navan, rebranding when you have brand equity, building B2B software for people, pricing and business models, and much more. Pushing Hard for CAC When Churn is Low During COVID, Navan lost $100M in revenue overnight.

Payment Solutions 282

Payment Solutions Payments Travel Scale 282

Natalia Luneva

JANUARY 13, 2021

However, the subscription business model can’t survive if you keep on acquiring new custo mers but the old ones keep on walking away. This article will answer the main questions that SaaS founders and market ers have about losing SaaS customers, in other words, user churn: What is SaaS churn definition and why lowering it matt ers?

SaaS Payments 105

SaaS Payments Payment Methods Churn Payment Services 105

SaaStr

MARCH 9, 2022

Pursue Diverse Revenue Models. Sometimes, it takes innovative thinking to pull more revenue out of a current customer base or business model. Along with a higher growth rate, leadership should also pause to review their retention and churn rates. You can use both organic and inorganic tactics to grow your business.

Revenue 261

Revenue Sales Hiring Leadership Scale 261

SaaStr

FEBRUARY 14, 2023

To calculate your net dollar retention, take all of your existing ARR at the beginning of the period, add on any cross-sell or upsell, subtract out any churn, and then see the ending ARR. Low churn shows stickiness ingrained in customer behavior or mission criticality. If people love your products, they should stick with you.

Metrics 261

Metrics Marketing SaaS SMB 261

Subscription Flow

OCTOBER 10, 2024

Some of the pitfalls that come with unplanned billing migration are faulty revenue reporting, data duplication, and customer churn. Growing businesses need to integrate with external systems such as CRM or accounting systems, to avoid data silos. The current billing system does not allow you to switch business models.

Payment Solutions 105

Payment Solutions Payment Services Systems Review SaaS Payments 105

Clouded Judgement

JULY 16, 2024

” How OneStream Makes Money From the S-1: “Our business model centers on maximizing the lifetime value of a customer relationship. Our cloud-based platform enables a modern and expanded approach to finance and EPM, which is sometimes also referred to as corporate performance management, or CPM.

Benchmarks 295

Benchmarks Data Artificial Intelligence Machine Learning 295

SaaStr

APRIL 30, 2022

Or maybe ARR, depending on your model. It wasn’t the case 20 or even 10 years ago, where the business models of the internet were more focused on eCommerce, marketplaces, or even advertising. One is your churn. SaaS businesses have churn. Churn, think we’re all familiar with what churn is.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

FastSpring

JANUARY 23, 2025

What got you into this particular business model? Secondly, I’ve worked across many, many business models. And of course, we need to know how those businesses work here at Flippa. So I’ve worked in SaaS businesses that were fast growth. Like what led you to become the CEO, Flip? million ARR.

Scale 112

Scale Entrepreneurship Scaling Underperforming Technical Team 112

SaaStr

DECEMBER 13, 2021

The time and headache saved by letting go of those responsibilities are beyond worth it, not just in terms of improving your own product, but reducing employee churn and increasing automation, too. If there’s a data breach, it’s the vendor’s responsibility, not yours. Open Source is an innovation that’s here to stay.

Enterprise 246

Enterprise AI SaaS AWS 246

SaaStr

JANUARY 12, 2022

You just close more, and churn less, and upsell more, when you show up. “Dig deep about their business model before sending them a proposal.” Few things are worse than churn-and-burn deals. .” — Tyler Hogge, SVP Product, Divvy. They don’t show up in person. ” — Vinish Garg.

CTO Hire 325

CTO Hire Sales Hiring New CTO CTO 325

User Pilot

FEBRUARY 12, 2025

Every SaaS company faces problemsproduct performance issues, low NPS, churn. On the contrary, there are too many ways to conduct a root cause analysis depending on your industry, business model, and even company size (think of Six Sigma in manufacturing, total quality management, DMAIC, etc.). When is it happening?

Technical Review 59

Technical Review Software Review Churn SaaS 59

SaaStr

JANUARY 5, 2023

Are customers churning? And if NRR drags while GR remains high, what changes might you make to your business model? Are employees engaged, and do they believe in the mission? Customer Health. Gross Retention. And if so, why? Are customers renewing and buying more? Failing fast in action.

Sales Hiring 49

Sales Hiring Acquisition Forecasting Outsourced Development 49

SaaStr

DECEMBER 27, 2019

294: The SaaS business model has risen to popularity for many reasons – it’s fast-paced, creates residual revenue streams, and well, the multiples are strong. However, while many are flocking to reap the benefits of the SaaS model, truly understanding how it works sustaining success over time is not as easy as some make it look.

Business Model 162

Business Model Churn Metrics Enterprise 162

Kellblog

JUNE 27, 2020

And, depending on the initial contract duration, high customer churn [1]. churn of 25%, and services margins of negative 66% when I started working with them [2]. Customers are left high-and-dry with failed or partial implementations that, if left unfinished, will likely lead to churn. For example, one company had a CAC of 4.0,

Consulting 144

Consulting Sales Recruiting Sales Hiring Startup 144

Tom Tunguz

JULY 9, 2018

First, the shift to a subscription business model reinforces customer centricity. Though tens of thousands of people have salivated over Fender’s guitars - notably Wayne Campbell and his love affair with the Stratocaster - 90% of people who pick up a guitar churn. There were three key themes that resonated with me.

SaaS 162

SaaS Subscription Payment Features Mobile 162

Casey Accidental

JUNE 9, 2020

across business models, customer types, etc. 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. * I actually didn’t have a great answer.

Retention 145

Retention Benchmarks Payments Payment Methods 145

FastSpring

MAY 20, 2024

Prepare for renewals with value adds to reduce churn. Are you looking for a merchant of record that will partner with you to grow your SaaS business? Plan management tools for businesses or their customers to manage the details of their subscriptions. Integrating customer-facing subscription management tools on your own site.

Payments 158

Payments SaaS Payments Merchant Services Payment Solutions 158

Clouded Judgement

MARCH 22, 2024

In it's truest form, ARR is used by pure SaaS business models to describe the aggregate annual value of the entire customer set. Many laude the SaaS business model because ARR is inherently predictable - you know what you’re revenue will be over the coming 12 months, and sometimes even further out than that.

AI 190

AI Cloud Revenue Technical Advisors 190

FastSpring

JANUARY 27, 2022

Each of the companies Jon worked with lowered churn by creating a better notification process, including a reminder about their renewal six weeks prior to the billing cycle. In this piece, we offer seven case studies from SaaS companies — small tweaks they made to reduce churn and increase customer LTV. Small things matter,” Jon added.

Merchant Services 146

Merchant Services Payment Services SaaS Payments Payment Solutions 146

FastSpring

NOVEMBER 2, 2023

Subscription Reporting Designed to help you understand the ins and outs of subscriptions across your business, subscription reporting provides insight into MRR, Active Users, Trial Status, Churn Rates, and much more. Interested? Here’s our documentation.

Subscription 167

Subscription Payment Features Payment Methods Payment Solutions 167