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. Even if they haven’t told you yet.

Acquisition 296

Acquisition Retention Payments Compensation 296

SaaStr

AUGUST 18, 2024

Massimo Arrigoni, CEO of Beefree, and Enrica Lipari, the People and Culture Director of Beefree’s parent company, Growens, share 5 secrets to a high employee retention rate. The post 5 Secrets to a 97% Employee Retention Rate Over 5 Years with Beefree’s CEO and People & Culture Director appeared first on SaaStr. Why do they stay?

Retention 314

Retention Scale Company Culture Leadership 314

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 234

Retention Software Review Revenue Systems Review 234

SaaStr

APRIL 20, 2022

Alice Katwan , SVP at Twilio , discusses how you can build a high-retention sales team while being remote. The post How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan appeared first on SaaStr. Key strategies to attract, nurture, and retain sales talent.

Sales Hiring 271

Sales Hiring Scale Retention Sales 271

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. Key Takeaways Don’t start too late with a plan to fight churn –– be ready to start tracking and monitoring churn and understand why customers leave.

Retention 245

Retention Revenue Startup Sales Hiring 245

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

Tom Tunguz

MARCH 4, 2021

A 20% delta in net dollar retention (NDR) may not seem like much, just a trifle, but make no mistake, it’s massive. It shows the difference in the net dollar retention across three competitors in the same space, Application Performance Monitoring: DataDog, New Relic, and AppDynamics.

Startup 361

Startup Retention SaaS 361

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 359

Startup SaaS Retention Churn 359

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

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 352

Customer Success Scale SMB Sales 352

SaaStr

JUNE 23, 2020

It turns out, as long as you have positive revenue retention, and keep at it, you’ll do just fine over time. In fact, if you can get to 60% growth, maybe even just 50% growth at $10m ARR, and keep your net revenue retention over 120%-130% … you will get there. Look at Zoom, Slack, Datadog, UiPath etc.

Scaling 363

Scaling Retention Revenue SaaS 363

SaaStr

OCTOBER 18, 2024

On going multi-product Henry adds, “I think the foundational point is if you want high net retention, you get high net retention in two ways. And so then you end up with no lever to offset scrutiny on net renewal rate or reduction in seats with another product to improve net retention.”

Sales Recruiting 302

Sales Recruiting Sales Hiring Scale AI 302

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 312

Cloud GCP(Google Cloud Platform) Software Azure 312

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 325

Retention Customer Success Churn Trends 325

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 316

Scale Sales Hiring Revenue Scaling 316

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 331

Venture Capital Marketing AI SaaS 331

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 362

Sales Recruiting Sales Hiring Scale Headcount 362

Tom Tunguz

JUNE 25, 2020

Net dollar retention is the most common customer success goal, used by about 37% of respondents. Logo retention is second at about 33%. Marketing teams spend 5-10% of ARR on programs (non-headcount expenses), and this is pretty consistent across ARR. This was surprisingly low. NPS is the least common at 7%.

Headcount 364

Headcount Scale Benchmarks Retention 364

SaaStr

MARCH 14, 2024

Better Retention Than the Lowest Quartile. It really pays to lean in on retention, especially if you sell to SMBs. 74% of Mobile Business Apps Renew. And the Top Mobile Apps See 4.5x The best mobile business apps see 74% renewal rates, vs. 63% or so for the median, and 48% or so more lower quartile. So much good stuff in here.

Mobile 318

Mobile Subscription Payment Features Pricing 318

SaaStr

MAY 21, 2024

As customer success came into its own, it was often seen as distinct from account management, focused on customer retention and happiness and NPS and CSAT. Just a few bits of advice here: Focus as much on New Net Customer Growth and Logo Retention / GRR as NRR. To get that integration working? Often, no one.

Customer Success 311

Customer Success Sales Trends Retention 311

SaaStr

JANUARY 12, 2024

We still want to drive retention and growth and make money. No one would disagree that retention and expansion are important. Prediction #1: GRR and NRR Make a Mild Comeback GRR (Gross Revenue Retention) and NRR (Net Revenue Retention) have been hard for many companies over the last year or so. The world has changed.

Sales Hiring 310

Sales Hiring Customer Success Scale AI 310

SaaStr

FEBRUARY 6, 2024

What’s Good Net Revenue Retention? Maybe no surprise the #1 question they get is “ What should my Net Revenue Retention be ? The handoffs between sales and CS are more seamless and can often lead to higher expansion ratios since the CRO now owns net retention overall. “Try to do better.

Customer Success 307

Customer Success Scale Sales Hiring Benchmarks 307

Tom Tunguz

AUGUST 26, 2020

Net Dollar Retention. Examining SaaS ratios, we see Asana charts lesser net dollar retention than SmartSheet. Asana holds a 6 percentage point lead in gross margin, likely a benefit borne of modern software architecture and the cost advantages it brings. SmartSheet. Sales Efficiency. Implied Payback Period, months.

Payment Solutions 363

Payment Solutions Payments Outsourced Development Payment Services 363

SaaStr

JULY 21, 2021

Again, NRR (over NPS, CSAT, logo retention) seems to be the core North Star metric for CS today, irrespective of the amount of variable comp. In these models, companies need to have a way to control the quality of new deals; one company measures sales team members based upon the “quality” (adoption/retention) of their new deals.

Customer Success 359

Customer Success Trends Retention Metrics 359

SaaStr

DECEMBER 21, 2022

We segmented customer retention by Small, Medium and Large accounts after about 24 months and saw a pattern that we now know is very common: ~85% revenue retention from our Very Small Businesses about 105% from Mid-Market; and about 120% from Larger Customers. 120% NRR: Your revenue doubles in 5 years even with no new customers.

Startup 287

Startup Retention Customer Success Revenue 287

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 311

Strategy Sales Compensation Retention 311

SaaStr

JULY 20, 2024

Let’s use net dollar or net revenue retention as an example. Secureframe has everyone on their customer success team calculate their book of business by hand to see their net revenue retention, so that they truly understand what goes into the calculation, what impacts it, and how they can better take action on it. What does this mean?

Sales Recruiting 297

Sales Recruiting Sales Hiring Scale Engineering 297

SaaStr

JANUARY 13, 2022

Folks that are very SMB with mediocre retention often don’t disclose it. Pretty consistent with what we’ve seen on our 5 Interesting Learning series , but helpful to see it distilled to one average number. Average NRR at IPO is 119% — but this excludes a bunch of SMB folks who did not disclose their NRR.

SMB 356

SMB SaaS Retention Scale 356

SaaStr

APRIL 24, 2022

SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. 10 Rules for Defining Churn with SVP of Customer Success & Retention at Solarwinds, Andrea Webb, and SVP of Commercial Strategy & Operations at ForgeRock, Tim Willey. Top Podcasts This Week: 1.

Sales Hiring 296

Sales Hiring Revenue Scale SMB 296

SaaStr

DECEMBER 4, 2024

It’s ended up being a tough road, with 91% revenue retention and 0% growth. NRR For Segment Product 91%, Growth 0% Twilio has looked at spinning out its Segment acquisition, but for now it’s retained the product. Twilio made some big M&A bets, some worked, and quite a few didn’t.

Acquisition 273

Acquisition Scaling Retention Pricing 273