SaaStr

DECEMBER 1, 2021

Takeaway #3: More Than Ever, Retention is Your Foundation For Growth. To make sure you keep customers and revenue in your businesses, pay attention to your NRR (Net Revenue Retention) even more than your ARR. Invest heavily in retention marketing. Key Highlights: Adopt a product-led growth mindset. Focus on your NRR > ARR.

Software Review 291

Software Review SMB Enterprise Software 291

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. The Challenge of Digital Expansion for SMB. When the shift began in 2020, everyone wrote off SMBs as unprepared for the necessary changes that lie ahead. As a result, SMBs have recognized HubSpot as a place for solutions.

Scale 265

Scale SMB Scaling Innovation 265

SaaStr

APRIL 1, 2023

How To Capture This Global SMBTech Opportunity There is massive market opportunity to sell to SMB businesses. Efficient Go To Market There are a lot of ways to GTM as an SMB. Delighting your customers and their end users means sticky customers and great retention. One thing is for certain. That’s why patience is key.

Scale 245

Scale SMB Merchant Services Payment Methods 245

SaaStr

FEBRUARY 12, 2022

However, there are practical methods you can use to acquire new customers, drive higher retention, and grow your company. . Gorgias CEO Romain Lapeyre has successfully scaled the Gorgias SMB customer base from 1,000 to 10,000 by relying on data. Lapeyre shares advice on how to use data to acquire more customers and increase ARR. .

SMB 246

SMB Scale Data Scaling 246

SaaStr

JUNE 7, 2021

If your SMB product requires or has a salesperson involved in closing, that’s a clear sign you also want a human being involved in making sure that customer is a success post-sale, too. Just assign a certain amount of ARR per each SMB customer success manager. Support has to handle a lot of routine SMB issues anyways.

Customer Success 353

Customer Success Scale SMB Sales 353

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. The admin, influential decision-makers, and consumer sales reps can be the same people in a Consumer or SMB setting.

Scale 246

Scale SMB Enterprise Sales Hiring 246

SaaStr

JANUARY 13, 2022

Average NRR at IPO is 119% — but this excludes a bunch of SMB folks who did not disclose their NRR. 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.

SMB 360

SMB SaaS Retention Scale 360

SaaStr

FEBRUARY 24, 2021

100% Client Spend Retention across 139,000 Customers. I would have expected lower than 100% net revenue retention from Upwork, given that much of the spend can be episodic. Net net, even from SMBs, Upwork manages 100% NRR, just as Shopify and Hubspot do from SMBs. 80% SMB, 20% Enterprise. So what can we learn?

Marketplace as a Service 336

Marketplace as a Service SMB Cloud Enterprise 336

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

OCTOBER 29, 2020

112% Net Revenue Retention. Zendesk doesn’t see the 140%+ net retention we see in the enterprise (big deal sizes) or in many B2D companies like Twilio, but it’s still above 110% for a business that is 60% Enterprise / 40% SMB. Sometimes, you just stay a steady mix of Enterprise and SMB. No excuses.

SMB 298

SMB Enterprise Churn Retention 298

SaaStr

SEPTEMBER 2, 2023

. “Higher growth is generally associated with higher retention and vice versa. The higher a company’s retention, the easier it is to grow, as the company doesn’t have to replace as much lost revenue. T he impact of retention is also cumulative as it repeats and expands on itself year after year.

Startup 300

Startup SaaS SMB Banking 300

SaaStr

DECEMBER 20, 2021

Moving from Churn to NRR as the Core Retention Metric. This may sound obvious to more enterprise folks, but many Very Small Business and SMB focused SaaS companies still focus more on churn than NRR. It’s part of the legacy of B2C and SMB having a lot of similarities in SaaS.

Metrics 62

Metrics SMB Scale B2C 62

SaaStr

MARCH 28, 2025

SMB customers. For SMB SaaS, aim for 6 quarters of LTV:CAC, not 4 Ren adjusted the traditional benchmark because SMB customers stay longer than typically measured. As we gear up for 2025 SaaStr Annual, May 13-15 in SF Bay , we want to take a look back at a few of our top sessions from last year.

SMB 130

SMB Payments Payment Services SaaS Payments 130

SaaStr

MARCH 20, 2021

Traditionally, that has meant even 100% Net Revenue Retention can be tough when 20%-30% of your customers may be out of business in a given year! Smartsheet: 123%+ NRR from all customers, so probably ~110% from SMBs : #2. Zendesk: 112% NRR overall, with 40% SMB. So probably again around 100% NRR from SMBs.: #3.

SMB 288

SMB Churn Retention Enterprise 288

SaaStr

DECEMBER 2, 2020

Some deceleration in net retention. But net retention, while strong, has declined from 135% to 125% over the past 5 quarters. But we’ve seen many SaaS and Cloud leaders manage to maintain consistent net retention at $1B+ ARR. But Slack’s SMBs seem to have accelerated, too, since then. Competition?

SMB 299

SMB Enterprise Cloud Retention 299

Tom Tunguz

FEBRUARY 6, 2019

In the SMB, month to month is more common. Aim for 90%+ Logo Retention. Higher rates of customer retention are more common in the mid-market and enterprise. Target 100-140% Net Dollar Retention. The top quartile of respondents observe net dollar retention of 120%+. Annual contracts dominate in the mid-market.

Payment Services 279

Payment Services SaaS Payments SMB Benchmarks 279

SaaStr

MAY 18, 2021

But one thing that is almost always true, is you get more renewals, more upsells, and more net revenue retention from your largest customers. Squarespace is almost all not just SMB, but self-service. Their new revenue retention is about 85%. As a best-of-breed player, its net revenue retention is about 100%. Segment it.

Merchant Services 280

Merchant Services Revenue SMB SaaS 280

SaaStr

MAY 26, 2019

self-service customers, at some point, you can potentially have the entire world as customers and mature out in SMB. One worry with SMB and freemium is how big can the market be? 100% Dollar-Based Retention for organizations. This is strong for SMBs, but at the low end of public SaaS companies overall. With 670,000+ (!)

Scale 273

Scale SaaS Payments Payments Payment Services 273

SaaStr

APRIL 24, 2022

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. SaaStr 548: How to Build a Super High-Retention Sales Team with Twilio SVP & GM of North America Sales, Alice Katwan. Each week, we round up our most popular content so you can catch up on anything you may have missed. But The Best Ones Make $261k. Every Investor is Different.

Sales Hiring 300

Sales Hiring Revenue Scale SMB 300

SaaStr

DECEMBER 19, 2019

We might call them SMEs (vs SMBs). But with ~100% net revenue retention (vs. 140%+ for Slack, Zoom and Pagerduty’s SMB customers), they do have to work harder. Still, 100% net retention should be your basic standard with SMEs. 30% is super impressive at almost $1b in ARR. Hubspot does it at $10k ACV. So can you.

Outsourcing Services 363

Outsourcing Services Scale SMB Pricing 363

SaaStr

JUNE 13, 2019

And they were broken down roughly a third, a third, a third by targeting the SMB, the mid-market, and the enterprise. In the SMB, two-thirds use month-to-month, and in the enterprise, you’ve got two-thirds using multi-year. Our second topic, benchmarks around retention. Logo retention. What does this mean?

Scale 254

Scale Sales Hiring SMB Payment Services 254

Intercom, Inc.

NOVEMBER 21, 2019

One of our mantras here at Intercom is that customer retention is the new conversion. In an era when more and more businesses adopt a subscription model, strong customer retention is the key to sustainable long-term growth and requires a laser-like focus. . The ultimate goal is retention, not activation.

Retention 34

Retention Scale Marketing Underperforming Technical Team 34

SaaStr

DECEMBER 15, 2021

7:00 AM (50 MINS) – Acquiring SMB 10,000 Customers Solely from Data with Gorgias’ CEO Romain Lapeyre. 9:00 AM (20 MIN) – 10 Learnings Scaling from Consumer to SMB to Enterprise with Grammarly’s Head of Organizations Revenue Dorian Stone. All times are in Pacific Time. 7:00-8:00 AM PT. 8:00-9:00 AM PT.

Scale 279

Scale VP of Engineering Scaling SMB 279

SaaStr

SEPTEMBER 26, 2019

What we learned from ’08-’09 in SaaS: First, SMB churn went through the roof — as SMBs went under much more quickly and often. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. Anyone processing a lot of SMB and credit-card deals saw churn probably double.

SaaS Payments 280

SaaS Payments Sales Hiring Scale SMB 280

SaaStr

MAY 19, 2021

Not all SMB leaders have to be freemium to win. #7. Once they added a sales team, NRR and cohort retention went way, way up: The post 5 Interesting Learnings from Monday.com at $240,000,000 ARR appeared first on SaaStr. Like Atlassian, Monday waited to launch a Free plan and hasn’t traditionally been a freemium play.

Scale 361

Scale SMB Government Enterprise 361

SaaStr

JUNE 29, 2022

It’s moved beyond its tiniest customers, of an ACV of < $1k, but other than that, it’s going upmarket without giving up its SMB roots. Even though Zendesk still has thousands and thousands of SMB customers. #2. Zendesk IPO’d as an SMB support solution. At $1B in ARR, Zendesk was growing 24%.

SMB 300

SMB Scale B2B Revenue 300

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). Hiver’s Free Shared Inboxes for SMB. Where can I find the deal? What are they all about?

Artificial Intelligence 308

Artificial Intelligence Machine Learning SaaS Consulting 308

Tom Tunguz

JANUARY 25, 2019

In the SMB the distribution is more uniform. Price points in the SMB can vary widely, as can the success effort. The next analysis I’d like to see is the correlation of ARR/CSM to logo retention and customer expansion to answer the question: does a lower ratio of ARR/CSM translate into better expansion and retention?

Management 253

Management SMB Enterprise Retention 253

SaaStr

MARCH 6, 2024

Split Sales Team Managing SMB Accounts Into 2 Teams, One on New Business and One on Upsell It’s interesting to see Okta do this a bit later in life than some, but it makes a ton of sense given the current macro environment. GRR / Logo Retention in Mid 90% Range. Their multi-million dollar contracts are 30%. #5. Billion in ARR!

Fractional VPE 288

Fractional VPE Part-Time VPE Scale SMB 288

SaaStr

DECEMBER 10, 2019

110% Net Revenue Retention and 8 2% Customer Retention from 81,000+ SMB Customers. But that also proves that’s no excuse to drop below 100%+ net revenue retention. Bill.com manages 110% Net Revenue Retention on 82% Customer / Logo retention. Revenue Growing Much Faster Than Customer Count.

Payment Services 276

Payment Services Payments Payment Methods SMB 276

SaaStr

MAY 20, 2024

It can take years for some SMB SaaS companies to hit and cross 100% NRR, for example. But if your churn and retention numbers aren’t at least mid-pack for your category, don’t let it lurk. Almost every founder regrets using capital to keep a high-burn rate engine going that isn’t scaling rapidly. #2.

Trends 318

Trends Scale Sales Hiring Venture Capital 318

SaaStr

AUGUST 14, 2019

A few things: Dollar-based net retention is still the key to almost all the winners in SaaS and remains at 140%. Twilio’s net revenue retention was even up a smidge to 140%. Even SMB SaaS. Still, Twilio remains solidly SMB by make-up. So what can we learn from an outlier? It’s just a matter of when.

Telecommunications 46

Telecommunications SMB Acquisition Retention 46

SaaStr

APRIL 11, 2021

”The Playbook to Boosting Net Retention (Quickly) with Terminus’s CEO” SaaS veteran Tim Kopp takes us through a deep dive on driving up NRR. #2 What were we all watching? Let’s dive in! #1.”The 4 “SOC 2 Demystified: The Key to Closing Enterprise Deals with Vanta CEO Christina Cacioppo.”

Scale 280

Scale SMB Scaling Retention 280

SaaStr

DECEMBER 20, 2022

The 4 V’s of Sales: Volume, Value, and Velocity: Head of SMB Sales Fernando Belfort and Head of Sales Enablement Kendra Wrightson. #19. How to Maintain +140% Customer Retention with Dooly CEO Kris Hartvigsen and Head of Customer Success Ellie Hutton. Learnings from Innovating in Underserved Markets with Samsara CPO Kiren Sekar.

Scale 277

Scale SMB Sales Enablement Innovation 277

SaaStr

MARCH 19, 2021

A head of customer success that doesn’t own churn, or net revenue retention in the first 90 days. No VPS can be great at inbound, outbound, field, SMB, Enterprise, Channel Partners, Strategic Accounts, High Velocity Sales. Never will. He can’t. He never will. He’s a best efforts guy.

Sales Recruiting 349

Sales Recruiting Sales Hiring SMB Engineering 349

SaaStr

APRIL 8, 2023

Here’s a list of some of the most popular to dig into: Atlassian’s CRO Cameron Deatsch: “How The Biggest Product-Led Enterprise Company In The World Did It” Skilljar’s CRO: “An Inside View on Hiring Your First CRO” Rippling’s CRO: “Entering a Hyper-Competitive Market” DigitalOcean’s (..)

Scale 307

Scale Sales Hiring SMB SaaS 307

SaaStr

JUNE 7, 2023

It has now secured over $67M in funding and offers a robust platform for mid-market and SMB segments. WorkRamp shifted its focus to a different segment –– the mid-market and SMB side. Customer Impact : A much better PMF for SMB & Mid-Market customers. “You In one year, WorkRamp improved gross retention by 11%.

Scale 246

Scale Scaling SMB Marketing 246