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Dear SaaStr: What Are the Most Important SaaS Metrics in the Early Days? In the early days, there are probably only 5 metrics that really matter : ARR ARR Growth Rate Burn Rate True Customer Happiness. NPS is A Great Core Metric. Don’t get lost in secondary metrics and miss the bigger early-stage goals.
As Checkr follows usage-based pricing, it’s a transactional business that needs to be managed differently than a typical subscription SaaS model since they only earn revenue when the customer is using the product. ” Quickly, Lindsey found that comp plans weren’t aligned with Checkr’s revenue goals and incentives.
So, you should think about it the same way and use it intentionally to drive growth, revenue, or whatever else, but think about it more than something you set at once and forget. But if you’re trying to maximize revenue, you have to find the revenue maximization point.
Next, define what you need from a metrics and reporting standpoint. Startup Metrics with Dave McClure Dave McClure has a great presentation on Startup Metrics where he points to some additional metrics that are useful to consider: A : Acquisition - Where / what channels do users come from?
Join us for a deep dive into designing effective pilots that test the waters and drive success in usage-based revenue. Discover how to develop a pilot that captures real customer feedback, aligns internal teams with usage metrics, and rethinks sales incentives to prioritize lasting customer engagement.
Revenue, Revenue_USD, Revenue_new, rev2, customer_revenue. Minerva is ubiquitous inside Airbnb - it manages more than 12,000 metrics and 4,000 dimensions across 200 data producers. Imagine the customer success team asks for a revenue chart in their CRM: it’s as easy as siphoning the data from MetricsFlow via a API call.
They know they’ll need an ever-expanding team to hit compound revenue targets—2 reps, then 4, then 8, then 16, and eventually 64 or more. The 90-Day Revenue Test While 30 days is enough to evaluate their hiring decisions, you should see clear revenue improvements within 90 days (or one full sales cycle).
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.
Anyone who has managed a larger BI deployment has faced the challenge of managing hundreds, perhaps thousands of metrics. Marketing & sales define revenue or leads or cost-of-customer acquisition differently. In the BI tool, a marketing analyst finds three metrics: cost_of_customer_acq, CAC2, & new_CAC.
Speaker: Christopher Ryan, Founder and CEO of Fusion Marketing Partners
Enabling your sales & marketing teams to work together with their own defined set of metrics; A case study that illustrates these important strategies; And more! Don't miss out on this opportunity to get your teams working together and your revenue performance optimized. April 29, 2020 11:00 AM PDT, 2:00 PM EDT, 7:00 PM BST.
Here’s what it really took for Attentive to go from $0 to $500M ARR in just 7 years, sending over 32B text messages and generating $20B+ in revenue for their 8,000+ customers. CEO Amit Jhawar joined us at SaaStr Annual for a deep dive: 1. Solve The Hard Problem First And Patent It The first key insight?
CAC Payback Period Predicts Success More Accurately Than Any Other Metric CAC payback period stands above all other SaaS metrics as the most holistic indicator of business health. Unlike isolated metrics like growth rate or gross margin, CAC payback simultaneously reflects market demand, go-to-market efficiency, and product quality.
They prioritize revenue growth, market share and profit maximization differently. Maximization (Revenue Growth) - maximize revenue growth in the short term. Many mid-market software companies price with the goal of revenue maximization, negotiating for the highest possible price in each sale.
It created a lot of discussions and was more controversial then — that NPS was a great core metric. Back then, I wrote that when I was a SaaS founder, I thought Net Promoter Score (“NPS”) was a somewhat dumb, Big Company metric. NPS isn’t tied to upsells, churn, or revenue. NPS is A Great Core Metric.
With outcomes and metrics that align directly, find out why customer success should be the foundation of a customer marketing strategy. Customer Success teams actively track KPIs and metrics that directly align with customer marketing outcomes. How marketing to customers generates revenue. Who should own customer marketing.
So we’ve covered HubSpot more than any other SaaS leader on this 5 Interesting Learnings series, in part because so many of us use HubSpot ourselves, and in part because its metrics and use cases are so like many of the apps we build and sell ourselves. 5 More Interesting Learnings then: #1. 3+ Product (Hub) Customers Worth 2.7x
I realized It has been a decade since I’ve updated revenue-per-employee metrics. Revenue per employee spans approximately $200k-$900k. In 2013, the average revenue per employee of these companies totaled $200k. In 2023, these companies added about $37k in revenue per employee, but the range spans $18-71k.
Let’s break down the real metrics from companies doing this right. Before Customer.io, Jason built and scaled marketing teams at several B2B SaaS companies, with a focus on customer engagement and revenue operations. Here’s how Notion crushed it: The Hard Metrics: 49-51% open rates (2x industry average) 1-1.5%
Think emails in your inbox, glitter on a Mother’s Day card, hot sauce… That applies to social media metrics, too. Not all social media metrics are created equal, and which ones to focus on comes down to your specific social media goals. What are social media metrics? You might be surprised to hear it.
Multiple industry studies confirm that regardless of industry, revenue, or company size, poor data quality is an epidemic for marketing teams. This buyers guide will cover: Review of important terminology, metrics, and pricing models related to database management projects.
To make this concrete - if a company got to say ~$25-50m in revenue (I’m making this number up, it’s just illustrative), someone else who is considering competing might be persuaded against it. By the time they got their competitor up and off the ground, that first mover may already be at $100m+ in revenue and at escape velocity.
What are the three most under-discussed metrics on social media, with VCs, and especially with founders? Very few founders use net new customer count as their #1 KPI because they’re solely focused revenue growth. Fastly , an Enterprise CDN at $500M in revenue is only growing its customers 1%. You’re hiding in NRR.
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.
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. I think they’re in a good spot.
Speaker: Jon Steinberg, Co-founder of Mountside Ventures, and Clayton Whitfield, Co-Founder and SVP of Revenue Programs at SaaSOptics
During this panel discussion, Jon Steinberg, Co-Founder of VC advisory firm, Mountside Ventures, and Clayton Whitfield, Co-Founder and SVP of Revenue Operations at SaaSOptics, will explore the different types of SaaS funding options available today, the process and timing of evaluating them, and how best to prepare yourself for raising funds.
Former Head of Revenue at BILL and HubSpot Americas leader Michelle Benfer recently joined us on a SaaStr Workshop Wednesday share her insights on one of the most critical roles in any SaaS organization: the frontline sales manager. Driving revenue through acquisition, expansion, and retention. Shaping and maintaining company culture.
The variable portion should be tied to measurable outcomes like net retention, upsell revenue, and customer satisfaction. Tie Commission to Net Revenue Retention (NRR) : NRR is the gold standard for AM performance. NPS or CSAT scores), consider tying a small bonus to these metrics. This motivates them to go above and beyond.
Kyle Norton CRO of Owner is kicking off a new podcast for Pavillion with revenue leaders, and we were lucky enough to be guest #001 here: It’s a great convo on many SaaStr themes — but from the perspective of a VP Sales / CRO. Prepare your presentations with this in mind, balancing metrics with high-level strategic insights.
So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. E.g.,: CAC of < 12 months is Good-to-Great Paying sales reps 25%-30% of what they close is Good A burn ratio of 1 or less is Good These metrics do sort of work, if you have some capital to spend (i.e., It depends.
Let’s jump right into this set of community questions focused on SaaS metrics, growth, and efficiency. What metrics should we expect in this environment? The average public company today has over $300k of revenue per employee; in 2021, it was just over $100k. These payback metrics are important for investing.
The event is known for its focused content on SaaS growth strategies, metrics, and best practices, making it particularly valuable for B2B SaaS companies. It’s the largest non-vendor SaaS conference in the world, typically drawing over 12,000 SaaS founders, executives, and investors.
Big customers should churn less on a net revenue basis (including upsells) than small customers. NPS is A Great Core Metric. And then magic will happen. Because churn is the one thing everyone in the company can impact, on some level. Second, segment churn. I see too few SaaS start-up and scale-ups truly segment churn. Not for real.
If youve come up in your career through sales, you’re used to living in a world defined by revenuemetrics. If youve reached the pinnacle of becoming a chief revenue officer (CRO), you know how to tell a growth story that makes sense to the board and to the market. Pipeline coverage. Deal velocity.
Join us for a candid conversation with Barr as she shares how Monte Carlo transitioned from ARR to daily revenue as the core operating metric for the business.
Versus, apparently, a plan for $1m in revenues the first year acc. But a useful metric to understand nevertheless. It shipped Lotus 1-2-3 in January ’83 and sold $50m in software in its first year on the market — that must be $100m+ in today’s $$$. to Wikipedia. It IPO’d later that same year of launch.
Rep Performance : Dive into individual and team performance metrics. Metrics like time spent in each stage and reasons for lost deals can provide clarity. Churn and Expansion : For existing customers, analyze churn rates, upsell/cross-sell performance, and NRR (Net Revenue Retention). Are you losing deals at a specific stage?
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. Time-to-value is your most critical early metric. Shocking, I know. But a great CS team keeps promises realistic and achievable.
Dear SaaStr: What are The Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue? NPS is A Great Core Metric. The post The 6 Most Common Mistakes Founders Make When They Are Just Starting to Scale Revenue appeared first on SaaStr. More on that here: I Was Wrong.
With 90% of the Fortune 100 on GitHub and 40% of its $2B revenue coming from AI products, these real-world examples will also help you launch an AI-powered product at scale. Other places this feedback loop worked well were: Adoption loop metrics. Customers crave metrics about how teams are using all AI products.
Develop New Performance Metrics : Traditional sales metrics don’t capture the effectiveness of this hybrid approach. CROs need metrics that reflect the overall team performance rather than separating human and AI contributions. Clari: The Top 10% of Reps Close 65% of Revenue. And The Bottom 50%?
Financial Highlights Revenue : $282M in Q1 FY25, up 30% YoY (!) Global Expansion Shows Significant Runway Potential While North America represents 54% of revenue, Monday.com is showing strong global penetration with significant presence in Europe (27%), APAC (8%), Latin America (6%), and MEA (5%).
But unless you are raising from folks that truly invest pre-revenue, investors are going to want to see 3 strong months of growth in a row. Look at your metrics objectively. Would you invest, yourself, based just looking at the communications and metrics? Its OK if the prior 12-24 were slow. Re-read that deck.
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.
For subscription-based businesses achieving consistent and predictable revenue growth is the holy grail. In fact, monthly recurring revenue (MRR) is one of the most important metrics subscription businesses should be aware of. TL;DR MRR is the average revenue that a company expects to receive each month.
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