Stax

MARCH 16, 2025

The average churn rate for the software industry as a whole is 14%. Thats actually one of the lowest churn rates across all industries. That said, industry experts agree that your SaaS companys goal churn should be below 2%. TL;DR The average software industry churn rate is 14%, but SaaS companies should aim for under 2%.

Payment Solutions 88

Payment Solutions Software Review Churn SaaS Payments 88

SaaStr

JULY 26, 2022

But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. Endemic churn. The type of churn you almost can’t do anything about. Net net, most true SMB SaaS products often churn on the order of 3% per month almost no matter what you do. And measuring it.

SMB 363

SMB Churn Payment Services SaaS 363

SaaStr

APRIL 21, 2021

Even with relatively high churn for a public company (since Wix is self-service), it’s first $1B of ARR will grow to $9.2B We don’t include second-order revenue. It typically averages out to 15-30% for more SaaS apps in Year 2 (averaged across all your customers) selling to medium sized and larger customers, net of churn.

Revenue 350

Revenue Enterprise Customer Success Churn 350

SaaStr

JANUARY 16, 2025

Time-to-value plummeted Expansion revenue became almost automatic Sales cycles got more honest and efficient The 5 Things We Learned About Customer Success at $100M+ ARR Sales actually exaggerates. Don’t wait until you’re forced to fix churn. Most founders wait way too long here. But the results? Shocking, I know.

Sales Hiring 246

Sales Hiring Scale Sales Churn 246

SaaStr

MARCH 28, 2024

Dear SaaStr: How Do I Best Prevent Churn? You can’t eliminate churn. It’s a fact of business life in selling a product with recurring revenue and thus recurring sales. You can hide churn (e.g., My top suggestion is: Measure churn carefully, and consistently. And set a big annual goal to drive churn down say 20%.

Churn 273

Churn Revenue Sales Business 273

USIO

JULY 1, 2024

In the competitive world of Software as a Service (SaaS), generating recurring revenue is essential for sustainable growth. While many strategies involve significant investments in marketing, sales, and technology, there are also effective methods to boost recurring revenue that require minimal financial outlay.

Payments 306

Payments SaaS Payments Payment Solutions Payment Services 306

Clouded Judgement

NOVEMBER 18, 2024

Today, we capture on average approximately 1% of our customers’ GTV as revenue from their subscription to and current usage of our products. ” How ServiceTitan Makes Money From the S-1: “We have two general categories of revenue: (i) platform revenue and (ii) professional services and other revenue.

Benchmarks 299

Benchmarks Payments Payment Services SaaS Payments 299

SaaStr

AUGUST 16, 2021

We put out a call on Twitter the other day for folks’ best tips on what has really lowered churn for them this year. The best place to put that incremental dollar on the revenue team is in existing customers. “1/ Divide your churn into manageable and unmanageable areas 2/ Strip out definable areas of churn reason (e.g.

Churn 326

Churn Sales Hiring Headcount Technical Review 326

SaaStr

AUGUST 9, 2021

Everyone talks about hitting 120%+ NRR these days But the truth is, single-seat users & very small businesses churn at a high rate. That sort of churn hurts. Even modestly decreasing churn in Very Small Business and single seat accounts can have a big impact. See if in the end, you get at least the same revenue.

Churn 306

Churn Payment Methods Payments Payment Solutions 306

SaaStr

MAY 22, 2024

And … 92% of its revenue is from subscriptions. Today, Gartner has now crossed $6 Billion in revenue, with a stunning $35 Billion market cap. 92% of Revenue is Recurring If you’ve bought Gartner research, you know this. A lot of “pseudo SaaS” doesn’t see this type of revenue retention.

Revenue 292

Revenue Enterprise Cloud Pricing 292

SaaStr

MARCH 8, 2024

The burn and the churn. The burn was at a stunning $2m a month, and the churn had spiked. It’s sort of a death spiral: High churn, but no burn = struggle, but the engine self-perpetuates to an extent. What’s really hard to solve is The 3H’s: High Growth for a while — but High Churn. And High Burn.

Churn 302

Churn Startup SaaS Payments Venture Capital 302

SaaStr

MARCH 23, 2025

For a VP of Customer Success (VPCS), their “quota” or ownership should revolve around two key metrics: Net Revenue Retention (NRR) and Gross Retention Rate (GRR). NRR is the North Star metric for customer successit measures how much revenue youre retaining and expanding from your existing customer base.

VPCs (Virtual Private Cloud) 162

VPCs (Virtual Private Cloud) Customer Success Churn Retention 162

SaaStr

FEBRUARY 7, 2025

Before Customer.io, Jason built and scaled marketing teams at several B2B SaaS companies, with a focus on customer engagement and revenue operations. Personalization = Revenue : Companies seeing the biggest gains are going way beyond basic mail merge fields. The Customer.io

Scale 271

Scale SaaS B2B Scaling 271

SaaStr

FEBRUARY 12, 2025

Meet Wyatt Jenkins: From Construction Sites to Chief Product Officer If you want to understand how vertical SaaS companies scale to $1B+ in revenue while staying true to their customers, there’s no better person to learn from than Wyatt Jenkins, Chief Product Officer at Procore Technologies.

Construction 251

Construction Scale SaaS Travel 251

SaaStr

JUNE 13, 2022

And I’m going to suggest two that will worry you a lot as you scale — Churn and Sales Cycle — you should track, but not obsess over, until you are well, well past initial traction, that first $1m-$2m ARR. >> Let’s Start with Churn. Absolutely, getting your churn trending downward is important.

Sales Hiring 274

Sales Hiring Scale Churn Metrics 274

SaaStr

AUGUST 5, 2024

How do you leverage your customer success team to drive revenue growth? Hook’s Head of Customer, Natasha Evans, took the stage at SaaStr Europa to discuss the three things leaders should focus on to fuel revenue growth. It will help drive revenue growth, which is the name of the game.

Scale 284

Scale Customer Success Scaling Revenue 284

SaaStr

MARCH 7, 2025

It begs the question: is the sales and revenue acceleration space back? But while its the best of times for many new, disruptive players in AI in B2B, its a bit early to see how big a boost it gives overall to the revenue management. It shows budget remains in the sales acceleration space where and when its earned.

Engagement 219

Engagement Sales AI B2B 219

SaaStr

APRIL 24, 2022

Navigating the CRO and CMO Relationship with G2 and SalesLoft: Mike Weir, Chief Revenue Officer, G2; Steve Goldberg, Chief Revenue Officer, SalesLoft; Amanda Malko, CMO, G2. Revenue Marketing: Build for Scale with Podium’s SVP, Revenue Marketing Jess Weimer. appeared first on SaaStr.

Sales Hiring 293

Sales Hiring Revenue Scale SMB 293

SaaStr

MARCH 30, 2024

Dear SaaStr: What are The Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue? More on that here: Beware of the Confidence of High Win Rates Not being 100% laser focused on NPS and CSAT (and driving down churn). It’s one thing to invest in an area where only 5% of your business is today.

Scaling 301

Scaling Revenue Underperforming Technical Team Market Segmentation 301

SaaStr

FEBRUARY 28, 2023

While Zoom Enterprise is growing at a healthy clip, churn is over 3% a month for its SMB customers As a result, it’s now predicting 1% growth next year 1% pic.twitter.com/i2k2W9QbVX — Jason Be Kind Lemkin  (@jasonlk) February 27, 2023 So Zoom has just been the craziest story of all time in SaaS. Good Times, indeed. Truly insane.

SMB 273

SMB Churn Enterprise Engineering 273

SaaStr

SEPTEMBER 27, 2024

The three growth tactics that worked for Rippling can be categorized into three different stages: Outbound Increasing closed-won revenue rates Serving customers and expanding revenue in the base Let’s start with outbound, where most of Rippling’s revenue comes from attribution-wise. As Account Managers, they only owned revenue.

Scale 320

Scale Sales Hiring Revenue Scaling 320

SaaStr

FEBRUARY 17, 2023

While the allure of customer acquisition can pull a founder’s attention, it’s equally important to dedicate resources to fighting churn and expanding revenue from existing customers. They discuss how Fox helped build a churn-fighting, upselling, and cross-selling machine that continues to generate revenue.

Retention 246

Retention Startup Revenue Sales Hiring 246

SaaStr

JANUARY 24, 2024

How do you diagnose and solve churn? Solving High Volume, Low Conversion at Lattice Dini Mehta joined Lattice at $3M in revenue when it had just 10 people in seat for Go-To-Market and 7 salespeople. Joining Box as CRO When They Had a Churn Issue Mark joined Box four years ago at $600M in revenue and 4-5 years past IPO.

Scale 273

Scale Sales Hiring Scaling Revenue 273

SaaStr

JULY 24, 2023

Folks pulled usage down as much as they could to save money, although logo churn remained low. 2 — New Workloads Are Only A Small Percentage Of Today’s Revenue, But Are The Majority Of Tomorrows. They milk the base, and the new customer account doesn’t remotely approach the new revenue growth rate. Revenue growth.

Revenue 245

Revenue Scale Sales Hiring Cloud 245

SaaStr

MARCH 24, 2025

Some fun facts: 10+ years of SaaStr conference attendance Partner at Point Nine Capital, a leading early-stage VC firm Geographic reach: Actively investing across Europe, US, and Australia Notable portfolio: Zendesk, Algolia, Contentful, Loom (and many more) Known for his “five ways to build a $100M business” framework The 5 Key Things (..)

Data 147

Data Acquisition AI Finance 147

SaaStr

FEBRUARY 23, 2025

The #1 key: design a template that is simple enough you can send it out on the first of the month, every month. That way you will actually get it done.

Churn 176

Churn Startup Metrics Revenue 176

SaaStr

NOVEMBER 21, 2020

At least 100% net negative churn (i.e., upsell/account growth + renewals – churn) for very small businesses. 119% net revenue retention. Asana, 130% net revenue retention. Fastly, 130% net revenue retention. PagerDuty, 139% net revenue retention. Zoom, 140% net revenue retention.

Retention 349

Retention SMB SaaS Enterprise 349

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

APRIL 17, 2021

Over $500,000 revenue per employee. But in contrast to Wix and Shopify, it doesn’t keep much of the revenue from merchant services itself. This ecommerce revenue was $143m in 2020, about 22% of total revenue. Just 6% of Squarespace’s revenues come from payment processor rev shares and other fees.

Payment Methods 337

Payment Methods Merchant Services Payments Payment Services 337

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. On top of that, churn and expansion tend to be quite predictable with low volatility. Why do software companies get “credit” simply for revenue?

AI 190

AI Cloud Revenue Technical Advisors 190