SaaStr

OCTOBER 25, 2024

8: 3x Net Dollar Retention Thanks to This Pricing Model Over time, the dominant pricing structure in B2C and B2B applications is like the cell phone plan. If you look at the net dollar retention change, the top quartile used to be 130% pre-2020. You get a base number of minutes for a particular price. Now, it’s about 120%.

Venture Capital 333

Venture Capital Marketing AI SaaS 333

SaaStr

JANUARY 8, 2025

Increasing Customer Gross Revenue Retention to 90 The third major focus area for Lindsey was improving the end-to-end customer experience to better align with the newly incentives sales team and larger focus on customer retention.

Revenue 296

Revenue Scale Sales Hiring Compensation 296

SaaStr

DECEMBER 20, 2024

Driving revenue through acquisition, expansion, and retention. “Having highly tenured reps tends to drive the highest performance, and good managers are key to retention.” “Having highly tenured reps tends to drive the highest performance, and good managers are key to retention.” ” 3.

Sales Hiring 262

Sales Hiring Scale Underperforming Technical Team Sales 262

SaaStr

NOVEMBER 12, 2024

SaaStr ) And once you have at least a little revenue ($1m-$2m ARR or so), net revenue retention / churn. In the early days, there are probably only 5 metrics that really matter : ARR ARR Growth Rate Burn Rate True Customer Happiness. Probably, measured as NPS (more here: I Was Wrong. NPS is A Great Core Metric.

Metrics 286

Metrics Venture Capital SaaS Churn 286

SaaStr

JANUARY 11, 2025

I dont have any answers here but I found the above Business Insider article with a leaked Microsoft memo helpful: They pay AI engineers 48% more They have special spot retention bonuses for AI engineers to keep them This is roughly what I see, too. The AI Team often makes a lot more. The AI Team at many SaaS startups makes 30%-40% more.

Engineering 287

Engineering AI New CTO CTO 287

SaaStr

JULY 7, 2023

“Retention is the new acquisition,” says Co-Founder and CEO of Insider, Hande Cilingir. Harvard Business School Research says that “increasing customer retention rates by only 5% increase a company’s profits by 25-95%.” Customer retention means building relationships with people. That’s huge! a feat Insider has achieved.

Retention 242

Retention Software Review Revenue Systems Review 242

SaaStr

DECEMBER 12, 2024

All that does in fact drive up retention, to an extent. It comes down a bit, but not enough. They improve onboarding, and integrations, and training, and sales comp plans, and more, and that all helps and is crucial. But even there, with SMBs, its often not enough. You often simply need more product to get to 100% NRR.

Churn 275

Churn SMB Payments Payment Solutions 275

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.

Enterprise 244

Enterprise Sales Hiring Scale Outsourced Development 244

Tom Tunguz

FEBRUARY 26, 2025

” The company grew from $15M in ARR to more than $1B with this model, consistently achieving better than 130% net dollar retention. With this model, Twilio maintained contracted revenue at less than 50% of ARR while achieving industry-leading retention metrics.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

FEBRUARY 21, 2025

Here’s a deeper dive into SaaStr Annual and why it’s considered the top SaaS event: Core Elements: Takes place in the San Francisco Bay Area (usually Silicon Valley) Features over 300 speakers across multiple tracks Focuses exclusively on SaaS metrics, growth strategies, and operational excellence Typically runs for 3 days with pre and (..)

Software 245

Software Scale Venture Capital SaaS 245

SaaStr

JANUARY 15, 2025

By eliminating unnecessary choices, Mangomint has become a one-stop solution, and its attributed this to some of its high customer retention rates. .” Mangomint focuses on being the complete solution rather than offering endless integrations that are often dead ends. medical spas vs hair salons) have distinct needs. .

Scale 276

Scale Sales Hiring SaaS Payments Sales 276

SaaStr

JANUARY 16, 2025

What Most SaaS Companies Get Wrong The standard playbook is: Hire sales Hit growth targets Eventually add CS when churn becomes painful But that’s backward.

Sales Hiring 246

Sales Hiring Scale Sales Churn 246

SaaStr

DECEMBER 27, 2024

The gross retention for people was low and I think we’re just getting back into a better spot. .” “The size of the sine wave will get down over time, but I think we’re in a different place in Q4 of this year than we were Q4 of last year,” Brian explained.

AI 287

AI Marketing SaaS Interviewing 287

SaaStr

MARCH 9, 2025

The 86% loyalty factor : Companies that provide strong onboarding and continuous educational experiences see 86% higher customer loyalty rates – making AI-powered personalization a critical retention tool. Continuous Education is the New Retention Strategy 86% of customers stay loyal to brands offering educational experiences.

AI 202

AI Scale Education User Experience 202

SaaStr

JANUARY 3, 2025

HubSpot recently changed its interview process to try and help maximize tenure and employee retention at the executive level. Or a great growth marketer paired with a great sales team will punch above their weight class. It can make all the difference. “We picked the guy who got all threes,” Brains explained.

Sales Hiring 287

Sales Hiring Scale Systems Review Interviewing 287

SaaStr

JANUARY 25, 2025

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

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 52

Retention Pricing AI Search B2B 52

SaaStr

FEBRUARY 1, 2025

” “What’s your timeline for data retention in AI systems?” They’re asking questions like: “What happens to our IP when it goes into your model?” ” “How do you guarantee our data doesn’t leak into other customers’ outputs?” ” And most SaaS companies?

AI 271

AI Data Government ChatGPT 271

SaaStr

NOVEMBER 19, 2024

Organizations that invest heavily in customer success earlier see much higher customer retention and loyalty than the competition. When Drata took this approach, it helped them scale to 5,000 customers, all within 3.5 From the very first interaction, you want to help customers drive adoption, value realization, and delivery.

Customer Success 287

Customer Success Scaling Social Media Enterprise readiness 287

Chart Mogul

OCTOBER 30, 2024

As we all know, the SaaS ecosystem has changed dramatically over the last few years, and customer retention and expansion are becoming increasingly important for SaaS … Account Management is a delightfully intricate balance of art and science. Now, retention is key to maintaining sustainable growth.

Management 105

Management B2B SaaS Scale 105

TechEmpower SaaS

JULY 31, 2023

R : Retention - Do they come back & re-visit over time? The metrics, and how they relate, are captured in his slide: Note the relationship between retention/referral efforts and lifetime value. A : Activation - What % have a "happy" initial experience? R : Referral - Do they like it enough to tell their friends?

Metrics 390

Metrics Startup Scale New CTO 390

SaaStr

MAY 12, 2023

So SaaS Capital put out its latest report on SaaS retention and NRR after having surveyed over 1,500 SaaS companies and professionals. Median NRR is 102% across all SaaS companies, Media Gross Retention is 91%. You can download it here. There are a lot of great learnings and metrics in the report, and a few stood out to me: #1.

Startup 362

Startup SaaS Retention Churn 362

SaaStr

OCTOBER 23, 2024

At BILL, logo retention is 86% in the first 90 days. BILL is efficient, and LTV continues to grow, so some might say six quarters is too light because of all the value added. People tend to stay for a long time. Six quarters seems to be the right balance, and managing P&L is always about balance.

SMB 310

SMB Payment Services Payments Payment Methods 310

USIO

JULY 1, 2024

Optimize Customer Retention Customer retention is crucial for recurring revenue. Strategies for Retention: Regularly Engage with Customers : Use email newsletters, in-app notifications, and webinars to keep customers informed and engaged with new features, updates, and best practices.

Payments 306

Payments SaaS Payments Payment Solutions Payment Services 306

Clouded Judgement

JUNE 19, 2024

net retention and CAC payback). Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies. Here’s the data from Q1: We have seen net dollar retention start to trail off in the last couple quarters.

Cloud 318

Cloud GCP(Google Cloud Platform) Software Azure 318

SaaStr

JUNE 7, 2021

Set clear KPIs on NRR and retention. Set a retention goal for your SMB customer success manager(s) and let them figure it out. They’ll adjust their time and strategy to drive churn down and retention up. ACV up they pair AEs + CSMs, because their ARR retention is so good (brands grow). This almost always works.

Customer Success 353

Customer Success Scale SMB Sales 353

SaaStr

FEBRUARY 10, 2025

The company developed a comprehensive framework for managing this transition: Key Components of the PLG Model User Acquisition Required scaling to tens of thousands of monthly signups Developed organic growth strategies through SEO Created individual pages for leads in their database User Activation and Retention Focus on immediate value delivery Implementation (..)

Scale 161

Scale Scaling Outsourced Development Sales 161

SaaStr

MAY 30, 2022

Having high net revenue / dollar retention is the magic of SaaS. Second, measure logo retention as often as your do NRR. Strive for 90% logo retention in general wherever you have 120%+ NRR. Third, remember to segment your NRR and logo retention by deal size. But … high NRR can also mask issues. I see this so often.

Retention 329

Retention Customer Success Churn Trends 329

SaaStr

SEPTEMBER 27, 2024

Should you go the CSM route, focusing solely on revenue retention, or go the account management direction where someone owns upsell and optimizes for revenue? There is one problem when you transition a customer success team to quota-carrying reps reporting to sales, and that’s when you don’t make them carry a retention quota.

Scale 321

Scale Sales Hiring Revenue Scaling 321

Tom Tunguz

AUGUST 15, 2021

People managers in startups distribute the recruiting and retention work over more people, enabling the company to scale faster, and more efficiently by reducing retention. It’s easy to miss that detail when building a headcount plan.

Sales Recruiting 363

Sales Recruiting Sales Hiring Scale Headcount 363