SaaStr

OCTOBER 23, 2024

SMB Unit Economics: Why Is 6 Quarters the Right Target for SMBs at Scale? So, SMBs are asking for consolidation, and that’s why Bill has acquired companies and continues to add more financial operation capabilities. BILL wants to be at the heart of every SMB business. If we go back to 2006, BILL was a cloud-based company.

SMB 312

SMB Payment Services Payments Payment Methods 312

SaaStr

APRIL 30, 2024

How do you build GTM efficiency in SMB sales? While this title is SMB-oriented, the advice applies to Mid-Market and Enterprise, too. The post How to Build Go-to-Market Efficiency in SMB Sales with Owner.com CRO Kyle Norton appeared first on SaaStr.

Scale 305

Scale SMB Sales Hiring Sales 305

SaaStr

AUGUST 21, 2023

So we reached out to the leading SMB vendor. 5x more for the SMB vendor! $50k 50k plus a migration fee (almost $100k total, really) for the SMB Vendor vs. $15k a year today for The Enterprise Vendor. But the SMB vendor is pushing hard to monetize its biggest SMBs the most. That’s huge for an SMB.

SMB 246

SMB Enterprise Scale Pricing 246

SaaStr

FEBRUARY 20, 2022

SaaStr 527: Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre. The 4 V’s of Sales: Volume, Value, and Velocity with Waze Head of SMB Sales Fernando Belfort and Head of Sales Enablement Kendra Wrightson. Plan For It. 5 Interesting Learnings from CS Disco at $120,000,000 in ARR.

SMB 286

SMB Scale Marketing Sales 286

SaaStr

FEBRUARY 28, 2023

While Zoom Enterprise is growing at a healthy clip, churn is over 3% a month for its SMB customers As a result, it’s now predicting 1% growth next year 1% pic.twitter.com/i2k2W9QbVX — Jason Be Kind Lemkin  (@jasonlk) February 27, 2023 So Zoom has just been the craziest story of all time in SaaS. It probably couldn’t last.

SMB 276

SMB Churn Enterprise Engineering 276

SaaStr

NOVEMBER 27, 2023

During SaaStr Annual , Eric Huff, VP of Sales Strategy and Programs, and Theresa Stevens, Regional VP of the SMB sales team, shared an “under the hood” look at how Salesforce does its internal forecasting using Salesforce.

Forecasting 289

Forecasting SMB Technical Review Sales 289

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. The past few years have kicked off an unprecedented wave of digital expansion.

Scale 264

Scale SMB Scaling Innovation 264

SaaStr

DECEMBER 1, 2021

The post The State of Software Buying: From SMB to Enterprise with G2’s CMO appeared first on SaaStr. Key Highlights: Adopt a product-led growth mindset. Treat your customers like your best marketing partners. Focus on your NRR > ARR.

Software Review 289

Software Review SMB Enterprise Software 289

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. With SMB, you want hundreds or thousands of little merchants to pay you every month. Nail an efficient SMB motion before trying to move upmarket.

Scale 242

Scale SMB Merchant Services Payment Methods 242

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Without an autonomous-first approach, you will miss out on many SMBs.

SMB 238

SMB Sales Hiring Scale B2C 238

SaaStr

AUGUST 29, 2022

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Millions and millions more.

SaaS Payments 346

SaaS Payments Scale SMB PayPal 346

SaaStr

NOVEMBER 21, 2020

Let’s look at some of the top public SaaS companies: Shopify — very SMB: 100%. Hubspot — mostly SMB: 100%. Surverymonkey — fairly SMB, but going more enterprise: 100%. Zendesk — 116%, mix of SMB and enterprise. Developer-focused, but still fairly SMB. And mostly SMBs. 119% net revenue retention.

Retention 349

Retention SMB SaaS Enterprise 349

SaaStr

OCTOBER 30, 2024

HubSpot has gone upmarket over the past years, while also remaining even more SMB-focused. 36K+ Deals Also Increased to 28% of the Base Shopify has seen something somewhat similar, as both have gone upmarket, growth in SMB and smaller customers have still kept up. Because even more start smaller than ever.

SMB 315

SMB CTO Onboarding Scale 315

SaaStr

JULY 11, 2023

So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. The post 10 Learnings on High-Velocity Sales to SMB with Gorgias CEO and VP of Sales appeared first on SaaStr. Who will be looking for this product? Who is the likely and ideal buyer? Segment: What segment are you pursuing? Mid-Market?

Sales Hiring 201

Sales Hiring SMB Sales Recruiting Payment Methods 201

SaaStr

NOVEMBER 13, 2024

110% NRR from 157,000 SMBs Yes, it can be done, 110% NRR from SMBs. 54% Growth in $50k+ Customers Like Shopify, Klaviyo is firmly SMB overall. SMB Weaker. But SMBs in the middle have become more cost and price-sensitive. #10. .” 5 Interesting Learnings: #1. It’s down from 117% at its peak, however.

Scale 306

Scale SMB Scaling Enterprise 306

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 352

Customer Success Scale SMB Sales 352

SaaStr

DECEMBER 12, 2024

So theres a theme Ive been working on with all the SMB-focused founders I work with and have invested in: # 1. The Goal for SMB SaaS is 100%+ NRR. Easy in enterprise, hard in true SMB. # However, SMBs have a certain level of inherent churn. And then your NRR will cross 100% with SMBs. Thats often 3% a month or so.

Churn 228

Churn SMB Payments Payment Solutions 228

SaaStr

MAY 7, 2021

HubSpot is sort a bell-weather stock and company for selling to SMBs and mid-market. And what we see is that SMB is on fire in SaaS. HubSpot is adding a breathtaking number of SMB customers at $1.1B Even though SMBs often at best have 100% NRR, HubSpot is more than making up for it with 45% annualize customer growth.

SMB 362

SMB Revenue Enterprise SaaS 362

SaaStr

SEPTEMBER 7, 2024

Automation and AI are critical in SMB Vertical SaaS … due to a lack of labor Automation and AI are less about efficiency in SMB vertical SaaS than simply dealing with a lack of labor. Onboarding has to be much slicker for SMBs. Toast had the luxury of taking years to build up a suite like this.

SaaS Payments 315

SaaS Payments Payments Payment Methods SMB 315

SaaStr

FEBRUARY 1, 2022

Toast’s SMB NRR is 114% today — but it took 4 full years just to get to 100%. A reminder that you don’t need to settle for sub-100% NRR from SMBs. And also that, with SMBs, it can take a while and a lot of value-add and learnings to get that NRR over 100%. And it’s the true magic in scaling SMB SaaS.

Scale 363

Scale SMB SaaS Scaling 363

SaaStr

JUNE 2, 2022

Two things though did get hit harder — SMB Churn and Upsell s. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. SMBs just plain went out of business in ’08-’09. So our gross SMB churn spiked to a crazy high of 5.5% That never even slowed down.

SMB 356

SMB SaaS Churn Enterprise 356

SaaStr

DECEMBER 27, 2023

10 Learnings on High Velocity Sales to SMB with Gorgias’ CEO and VPS Gorgias has 13,000 SMB customers. A very tactical guide to scaling SMB sales. #7. GGV Capital: Scaling The Top SMB SaaS Companies A deep dive on SMB metrics, a really good one. #10. Harness.io How do you handle and close so many?

Scale 287

Scale SMB Generative AI AI 287

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 356

SMB SaaS Retention Scale 356

SaaStr

MAY 1, 2024

SMB Churn coming down, but still at SMB-Like Levels Zoom for years defied what we knew about SMB churn. It had 110%+ NRR from SMBs! But in the end, today, at scale, their small customers churn is at the same high rates as other “grab and go” SMB products. What a crazy story. to 3%, which is material.

SMB 300

SMB Scale Banking Enterprise 300

SaaStr

AUGUST 5, 2021

A great session for any founders and execs thinking about moving out of SMB and into larger deal sizes: She then became COO at rocketship, HubSpot, overseeing its incredible 50% year-over-year growth at $1.3B This is the age of the SMB in SaaS. HubSpot increased its customer count an incredible 40% — at $1.2B in ARR (!).

SMB 342

SMB Scaling SaaS 342

SaaStr

DECEMBER 26, 2020

The startups I’m involved with that have happy SMB customers have much higher brand awareness around $10m in general than those that don’t. This makes the SMB leads worth a lot more than just their direct lifetime value. Don’t stay in SMB if your NPS there is 5 and your NPS in enterprise is 40+.

SMB 361

SMB Sales Hiring Marketing Enterprise 361

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. Enterprise NRR is now 123%, but than means SMB is now well under 100%. ARR … which it did in just 1 year (!!)

SMB 333

SMB Enterprise Engineering Scale 333

SaaStr

MAY 18, 2022

RingCentral is a very interesting case study in SaaS of starting very SMB, way in the early days of SaaS in 1999, keeping at it … and then tilting upmarket to going much more enterprise post-IPO. Fast forward to today, they are 27% SMB and 63% Mid-Market and Enterprise at $2B in ARR growing 33%. 5 Interesting Learnings: #1.

SMB 315

SMB Enterprise Scaling Revenue 315

SaaStr

JANUARY 2, 2021

We can see that NRR for tiny customers is probably about 100%, as it is for other SMB leaders. Again, the latest crop of Cloud IPOs shows SMBs seem to have no limit in terms of TAM, with SMB growth at Shopify and Zendesk keeping up with enterprise, and even at Asana, SMB growth is still impressive at $250m ARR.

SMB 362

SMB Enterprise Cloud Scale 362

SaaStr

AUGUST 30, 2021

Started 10 years ago as “Freshdesk” and a low-end / SMB helpdesk to rival Zendesk, Freshworks has since expanded its product footprint across IT management (Freshservice) and CRM (Freshsales) to a stunnning 49% growth rate at $350m in ARR. Headquartered in the U.S., NRR of 118%. 49% revenue growth from 20% customer growth.

Scale 361

Scale SMB Scaling Payment Features 361

SaaStr

DECEMBER 12, 2023

Enterprise reps tend to close more ($1m+), and SMB reps less (maybe $500k), with $750k net new bookings per year the median. or so a year to take home those comp levels, and an SMB rep likely $800k or more. In any event, that’s good median data. And how many hit quota?

SMB 333

SMB Sales Hiring Enterprise Metrics 333

SaaStr

SEPTEMBER 9, 2021

Bill.com has become an SMB powerhouse, with 120,000+ customers and a stunning $25B+ market cap. But the accountant channel is high volume, SMB play. There are 6m SMBs that buy SaaS software. There are 6m customers out there just in SMB. That’s the magic in SMB SaaS. All while selling at a $2k ACV!

SaaS Payments 64

SaaS Payments Payments Payment Services Scale 64

SaaStr

AUGUST 24, 2022

SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. Many SMB leaders have to get very, very good at outbound because of the limited deal sizes. An SMB price point where you can afford to pay the reps reasonably well, but again, where margins are tight.

SaaS Payments 328

SaaS Payments Scale SMB Payment Solutions 328

Tom Tunguz

MARCH 27, 2023

Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. Mid-market & SMB distributions skew left with up to 10% of businesses reporting a decrease in sales cycle during the period. This figure is statistically significant with a p value of 0.0005.

Startup 311

Startup SMB Headcount Sales 311

SaaStr

FEBRUARY 19, 2022

That journey here: Most of us don’t stay SMB forever. Zoom similarly started off almost 100% self-serve and SMB, and then later added an enterprise team. PagerDuty was almost entirely SMB at IPO, at $125m in ARR. If your product is really only applicable for SMBs, or techies, then that’s where it will stay.

SMB 342

SMB SaaS Enterprise Software 342

SaaStr

MAY 10, 2023

23% Customer Count Growth Leads to 30% Revenue Growth, but NRR dips to 104% HubSpot is still very much SMB, especially the “M” of SMB. But maintaining 100%+ NRR allows them to grow meaningful faster in revenue than in customer count, even from SMBs. Including HubSpot. #4. Q1 is a strong quarter historically. #8.

Scale 316

Scale SMB Headcount New CTO 316

SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Most SMB-focused businesses need shorter CACs to make the model wok, but with 111% NRR, Bill can invest at > 12 months here. Billion in ARR, it’s still growing 48% year-over-year. Yes, 48% at $1.2 Billion in ARR.

Payment Services 337

Payment Services Payments SaaS Payments Payment Solutions 337