SaaStr

NOVEMBER 26, 2022

So this is just a personal post, not as an investor or blogger or community runner, but as an SMB owner. ” as an SMB. Favorite #01 as an SMB Admin: Gusto. Favorite #02 as an SMB Admin: Bill. It might be — I don’t actually care as the “boss” at an SMB. Running “SaaStr Inc.”

SMB 236

SMB Systems Review Management 236

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 269

Scale SMB Sales Hiring Sales 269

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 219

SMB Enterprise Scale Pricing 219

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 237

SMB Scale Marketing Sales 237

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 232

SMB Churn Enterprise Engineering 232

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 253

Forecasting SMB Sales Technical Review 253

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 228

Scale SMB Scaling Innovation 228

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 252

Software Review SMB Enterprise Software 252

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 331

Retention SMB SaaS Enterprise 331

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 314

SaaS Payments Scale SMB PayPal 314

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 192

Scale SMB Merchant Services Payment Methods 192

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 360

SMB Revenue Enterprise SaaS 360

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 279

Scale SMB Scaling Enterprise 279

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 319

Customer Success Scale SMB Sales 319

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 340

SMB Scaling SaaS 340

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 272

SMB CTO Onboarding Scale 272

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 340

Scale SMB SaaS Scaling 340

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 210

Churn SMB Payments Payment Solutions 210

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 344

SMB Sales Hiring Marketing Enterprise 344

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 347

Scale SMB Scaling Payment Features 347

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 308

Startup SMB Headcount Sales 308

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 341

SMB SaaS Enterprise Software 341

SaaStr

APRIL 13, 2021

It’s also an interesting contact to Zoom , Zendesk and Slack , which recently have seen enterprise and SMB growth be about equal post-Covid. #2. This is top-tier NRR for a product with many SMB customers. 95% renewal rate, even with 10,000+ SMBs. NRR is up after going more enterprise, but not as much as you might think.

SMB 331

SMB Enterprise Scaling Startup 331

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 336

SMB Enterprise Cloud Scale 336

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 274

SaaS Payments Payments Payment Methods SMB 274

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 59

SaaS Payments Payments Payment Services Scale 59

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 303

SMB SaaS Churn Enterprise 303

SaaStr

MAY 21, 2021

But Box became 95%+ enterprise by revenue over time, and Dropbox is still 95% SMB and smaller and consumer. But — Dropbox is much more of a consumer and SMB focused product. Let’s contrast Box and Dropbox. Both grew into huge wins and highly successful public companies. Less TV, far fewer events, no big customer conference, etc.

Enterprise 337

Enterprise SMB Scaling Revenue 337

SaaStr

NOVEMBER 12, 2020

Differentiating between Small and Medium Businesses (SMB) and Enterprise, or larger companies, is vital. You’ll need to find and hire different types of sales reps, specifically to sell into the Enterprise since enterprise sales are more challenging and typically take longer than selling into an SMB. 3 – Sustain.

Scale 292

Scale SMB Sales Hiring Enterprise readiness 292

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 306

SMB SaaS Retention Scale 306

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 297

SaaS Payments Scale SMB Payment Solutions 297

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 270

SMB Enterprise Scaling Revenue 270

SaaStr

JULY 22, 2021

We’ve seen this with sales-drive SMB and SME leaders like Xero as well. If you are selling to SMBs, you have to be very efficient. Enterprise is $71k ACV on average, Mid-market is $36k, SMB is $23k, and small customers are $14k ACV. 180,000 revenue per employee. With 3,351 employees, Avalara is not that leveraged.

Scale 334

Scale SMB compliance Churn 334

SaaStr

FEBRUARY 17, 2021

Efficient at SMB marketing — an ~8 month CAC. We saw in this series other SMB leaders like GoDaddy and Xero need to get well into Year 2 to go profitable on a new customer, but Wix gets there in just 7-9 months. Quite an incredible SMB success story! Impressive. 43% of Revenue Outside the U.S / North America.

Payment Methods 292

Payment Methods Payment Solutions Payments SMB 292

SaaStr

JULY 14, 2022

Talkdesk, last valued at $10B, started off as an SMB Zendesk and Salesforce plug in at a $25m valuation when I first invested. That’s a big change from a grab-and-go SMB solution in the early days. As a side note, SMB SaaS companies often hit TTAM issues earlier.

SMB 314

SMB Enterprise Government compliance 314

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 285

SMB Sales Hiring Enterprise Metrics 285

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 279

SMB Enterprise Engineering Scale 279