SaaStr

JANUARY 8, 2025

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.

Revenue 286

Revenue Scale Sales Hiring Compensation 286

SaaStr

JANUARY 11, 2024

But with everyone discussing PLG, there just isn’t enough discussion in B2B of Product-Led Retention. But our B2C friends obsess about Product-Led Retention. I’m not saying the best product leaders don’t think about retention all the time at the product-level. But that’s not really Product-Led Retention.

Retention 311

Retention B2C B2B Churn 311

FastSpring

OCTOBER 11, 2024

However, in Asia, retention for monthly subscriptions is notably lower at 75%. If you’re selling software at the same price into both the U.S. and EU customer data to set “one-size-fits-all” global pricing. Those pricing models may not hold up globally given the different regional customer trends.

Merchant Services 158

Merchant Services SaaS Payments Benchmarks Subscription 158

SaaStr

MAY 27, 2022

About two-thirds of you have a 90%+ logo retention rate. This sounds a bit high to me, and some founders may think their logo retention is higher than it really is. It’s a challenge to get your logo retention rate up to 90% or higher. #8. 59% of you have raised prices this year. and North America.

Sales Hiring 336

Sales Hiring Pricing Scale Interviewing 336

SaaStr

SEPTEMBER 29, 2022

Dear SaaStr: How Do I Do My Retention Negotiation in an Acquisition? A few thoughts on retention compensation when you are acquired. Second, understand there are both carrots and sticks that acquirers can employ, and that the retention may involve a combination of both. But the sticks come out of the purchase price.

Acquisition 286

Acquisition Retention Payments Compensation 286

Clouded Judgement

NOVEMBER 18, 2024

As far as an expected timeline - typically companies launch their roadshow ~2-3 weeks after filing their initial S-1 (the roadshow launches with an updated S-1 that contains a price range). After the roadshow launch there’s typically ~1-2 weeks before the stock starts trading.

Benchmarks 299

Benchmarks Payments Payment Services SaaS Payments 299

Tom Tunguz

JULY 11, 2024

3x as productive as humans, which would parallel mechanical robots, how does a software company price? Building on yesterday’s post , pricing in software companies may change significantly when AI agents become the norm. This would be a significant increase in price, but the value of the software would be much higher.

AI 231

AI Pricing Software Compensation 231

SaaStr

DECEMBER 27, 2024

The gross retention for people was low and I think we’re just getting back into a better spot. Existing distribution channels: While startups are racing to build distribution, incumbents already have it However, the business model disruption around AI pricing remains a challenge for larger players to navigate.

AI 278

AI Marketing SaaS Interviewing 278

SaaStr

JANUARY 23, 2025

Just look at the numbers: Enterprise customers bring 95%+ best-in-class retention vs. 85% in mid-market. But the rewards – higher retention, bigger deals, and ultimately a much larger TAM – make it worth the investment. That compounds dramatically over time. Map out all stakeholders and their motivations early.

Enterprise 244

Enterprise Sales Hiring Scale Outsourced Development 244

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 257

Pricing Scale Retention AI 257

Blulogix

MARCH 17, 2025

By BluLogix Team Why Consumption-Based Pricing Drives Higher Customer Retention Introduction One of the biggest challenges in subscription-based businesses is churn. Consumption-based pricing solves this by ensuring customers pay only for what they use, improving satisfaction and retention.

Retention 59

Retention Pricing AI Search B2B 59

SaaStr

JANUARY 25, 2025

Founded 2008 * Raises ~$53m in VC * Sells 17 years later for $53m * Only $20m of that cash * 2x ARR price * 1x What Raised Just plain tough. Simple: they sold for less than they raised. Its that simple. No, the VCs dont get rich here.

Venture Capital 239

Venture Capital Investment Retention Pricing 239

SaaStr

MARCH 26, 2024

In it, we cover the SaaS community’s most pressing questions about Artificial Intelligence (AI), pricing, efficiency, and funding. Today, folks seem to be launching fewer features, ratcheting prices, and digging into the existing customer base. “If When you’re mature, raising prices by $1 might make sense.

AI 292

AI Pricing Artificial Intelligence Scale 292

SaaStr

NOVEMBER 19, 2024

Walker Research found in 2024 that the customer experience is now equal to price and product regarding key brand differentiators. Organizations that invest heavily in customer success earlier see much higher customer retention and loyalty than the competition. Every touch point matters, but you can’t scale like this.

Customer Success 278

Customer Success Scaling Social Media Enterprise readiness 278

SaaStr

FEBRUARY 10, 2025

The company’s pricing structure, centered around $10,000 average contract values (ACVs), created a problematic middle ground – too expensive for small and medium-sized businesses but not substantial enough to support a partner channel strategy effectively.

Scale 159

Scale Scaling Outsourced Development Sales 159

Clouded Judgement

MARCH 21, 2025

Price undisclosed but sounds like >$300m DataStax acquired by IBM. Price undisclosed but sounds like >$1B M&A has followed an interesting arc over the last ~20 years. Some highlights: Wiz acquired by Google for $32B Ampere Computing acquired by SoftBank for $6.5B Moveworks acquired by ServiceNow for $2.9B

Cloud 188

Cloud Pricing Subscription Payment Features 188

SaaStr

FEBRUARY 17, 2023

One company that has unlocked the secret to solid retention and revenue expansion is Brex , an easy-to-use corporate cards and spend management software in an integrated global solution. Get to the heart of why customers are leaving. Is it a broken product or lacking service? Something missing? Friction in usage?

Retention 246

Retention Startup Revenue Sales Hiring 246

Blulogix

DECEMBER 5, 2024

By BluLogix Team Navigating Complex Pricing Models in the Subscription Economy Introduction In the subscription economy, Managed Service Providers (MSPs) must adapt to increasingly complex pricing models to meet the evolving needs of their customers. Gone are the days of simple, one-size-fits-all pricing.

Payment Features 59

Payment Features Subscription Pricing Technical Review 59

Tom Tunguz

OCTOBER 4, 2020

Let’s cover one today: does the market price efficiently? The market isn’t pricing modern software companies well if pricing them principally on forward multiple. Net Dollar Retention rose in the last five or so. Ten years ago, forward multiples remained in a tight band between 5-10x. Today, they span 2-60x+.

Software 348

Software Pricing Revenue Retention 348

User Pilot

MARCH 27, 2025

Appcues offers three pricing plans based on the number of Monthly Tracked Users (MTUs): Start: This plan begins at $250/month for one app (billed annually) and includes features like in-app and email messaging, mobile push notifications, and no-code event tracking and analysis. Enterprise: Custom pricing based on your specific needs.

Mobile 66

Mobile Pricing Technical Review Software Review 66

SaaStr

DECEMBER 19, 2019

Many see this price point as not scaleable. But with ~100% net revenue retention (vs. Still, 100% net retention should be your basic standard with SMEs. But in the end, it is providing more products and more value at the same price point. Because in many ways, they are doing it the hardest way. With a $10k ACV.

Outsourcing Services 363

Outsourcing Services Scale SMB Pricing 363

Tom Tunguz

MAY 16, 2024

Both the companies with negative account retention still see relatively minor account churn : 15-25% account churn at these price points is common. The top quartile software companies around 125% today & the companies above are very similar with a median of 129% net dollar retention (NDR).

AI 290

AI Churn Trends Pricing 290

SaaStr

MAY 7, 2024

What I mean what you want is a pricing structure that anticipates discounts so the net effect is revenue positive. Later, when you implement a CPQ and other more sophisticated systems to manage pricing for a large sales team, these processes and systems will be designed to help you do just that, at least in part.

Pricing 277

Pricing Churn Enterprise Branding 277

Tom Tunguz

JULY 10, 2022

Later, lower NPS (net promoter score) and weakened NDR (net dollar retention) mar the company’s financials. In the second scenario, the company enjoys faster sales cycles, greater NDR, and better customer retention, plus a referral. In the first scenario, the sales team records terrific initial bookings.

Strategy 356

Strategy Sales Compensation Retention 356

SaaStr

APRIL 30, 2022

And account management, which is basically around for retention and also upsell of different products. We look at annual churn, given the nature of those businesses that have annual or multi annual contracts with much bigger price items and tickets. This is where we’re putting that price, et cetera. Is actually very good.

SaaS Payments 246

SaaS Payments Metrics Payment Methods Scale 246

Clouded Judgement

JUNE 19, 2024

net retention and CAC payback). This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) The quarterly median FCF margin has continued to rise as we exited the ZIRP period and companies focused on efficient growth.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

Blulogix

MARCH 24, 2025

By BluLogix Team AI Billing Innovations, Usage-Based Pricing, Credits, and Prepaid Models AI Billing Needs a New Approach Unlike traditional SaaS, AI products often require real-time metering and consumption-based pricing. Companies must find ways to manage infrastructure costs while giving customers flexibility and predictability.

AI Search 59

AI Search Payments Innovation AI 59

SaaStr

APRIL 8, 2020

Profitwell’s Free Pricing and Retention Audits. Click here for Profitwell’s free pricing and retention audits (a meeting with the Profitwell team for a free analysis of either your pricing or retention). Where can I find the deal? What are they all about? Where can I find the deal?

Machine Learning 298

Machine Learning Artificial Intelligence SaaS Consulting 298

SaaStr

APRIL 24, 2021

ARR now really means revenue with 100%+ Net Revenue Retention. We could have picked many B2D services, like Twilio or others, too, which have primarily or substantial transaction pricing too. Doesn’t ARR stand for Annual Recurring Revenue? Well of course it does. Let’s take a look at 3 great examples: Example #1: Bill.com.

Merchant Services 360

Merchant Services SaaS Payments Payment Solutions Payment Services 360

User Pilot

OCTOBER 19, 2024

Pricing : Userpilot offers flexible plans tailored to startups and mid-sized SaaS businesses, with pricing starting at $249 per month for the basic plan. Pricing : Qualaroo offers a free forever plan with all features included for startups and small businesses for up to 50 monthly responses.

Software Review 105

Software Review Technical Review Software B2C 105

User Pilot

NOVEMBER 29, 2024

Fullstory pricing. All of which are essential for improving user satisfaction, building loyalty, and boosting retention rates. The lowest price reported by users I came across was $247 a month for 75k sessions and 2 months of data history. Fullstory pricing. This article will help you decide. Fullstory session replay.

Underperforming Technical Team 105

Underperforming Technical Team compliance Software Review AI 105

SaaStr

SEPTEMBER 29, 2022

Free user retention. Stage 2: Prove free user retention. But this should come at last, where you focus on metrics such as paid user percentage or net dollar retention. Mistake #4: Pricing that creates friction for free user adoption and virality. Pricing by design creates friction. Pricing after the “aha!”

Technical Review 278

Technical Review Technical Advisors Scale Compensation 278

User Pilot

NOVEMBER 7, 2024

Collect customer data to calculate complex formulas for tracking metrics, monitor customer health scores, and resolve support tickets while continuously trying to improve retention and expansion. Velaris – pricing is only available upon request. Catalyst – pricing is only available upon request. G2 rating : 4.4

Customer Success 105

Customer Success Enterprise Software Review Startup 105

SaaStr

DECEMBER 16, 2021

Of course, it’s still important to track the big ARR picture, but GRR (Gross Revenue Retention) and NRR (Net Revenue Retention) are just as important to monitor. Pricing & Packaging . There’s no way around it –– pricing is tough to determine, especially for SaaS. Price (Top Layer): This is how much you charge.

Strategy 266

Strategy B2C Scale Payment Features 266