renewtrak’s Post

All churn is bad, but the passive kind is the worst! See the post below on what you can do to help prevent it. #renewals #customersuccess #renewalsledgrowth

Do you know… 📈 Why fixing your company’s GRR (gross revenue retention) becomes more urgent as the company grows older? 📉 Or why the normally negative correlation between a company’s profitability and valuation is flipping toward the positive? 📏Or what the Rule of 40 means, and whether it’s the right metric to measure your company’s health? Find the answers and much more in this recap of our 2024 B2B SaaS Benchmarking Survey webinar with SaaS Capital's Rob Belcher, and ChurnZero's You Mon Tsang. You can watch the webinar in full there too. https://okt.to/C03UuX #SaaS #NRR #GRR #Ruleof40 #customersuccess

Quick tip to reduce your SaaS churn rate. 👉 Upselling customers from monthly to annual plans It's a very effective way of reducing churn. It can easily be a win-win scenario: ✔️ You offer them a slight reduction in price for buying upfront and get more money upfront and a much lower churn rate; ✔️The client gets a better rate and avoids the hassle of processing invoices every month Another very effective way to reduce churn by 20% is to embed a custom cancellation flow. Instead of a simple '1-click-cancellation' button. #churn #cancellation #saas

After analyzing 100s of SaaS churn reports, here are my top 4 churn metrics you should track 👇 ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗮𝘀𝗼𝗻 This is incredibly useful for determining product direction. ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗣𝗹𝗮𝗻 This helps show the differences between the experiences of users on different plans. ✅ 𝗢𝗳𝗳𝗲𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 This helps show which offers are better able to prevent churn at the moment of cancellation. ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝘁𝗮𝗴𝗲 This informs the business of when users cancel their subscription, relative to their sign-up date. With raaft.io you have these metrics in one single churn dashboard. 👉 What metric is missing? #churn #saas #cancellationflow

After analyzing 100s of SaaS churn reports, here are my top 4 churn metrics you should track 👇 ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗥𝗲𝗮𝘀𝗼𝗻 This is incredibly useful for determining product direction. ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗣𝗹𝗮𝗻 This helps show the differences between the experiences of users on different plans. ✅ 𝗢𝗳𝗳𝗲𝗿 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 This helps show which offers are better able to prevent churn at the moment of cancellation. ✅ 𝗖𝗵𝘂𝗿𝗻 𝗽𝗲𝗿 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗦𝘁𝗮𝗴𝗲 This informs the business of when users cancel their subscription, relative to their sign-up date. With raaft.io you have these metrics in one single churn dashboard. 👉 What metric is missing? #churn #saas #cancellationflow

A renewal is a sale. It's not automatic. This is why CS struggles to get buy-in. Others don't understand that everything we do, we are doing in pursuit of a sale. And it's not as easy a sale as you might think... Because we don't get to sell the dream anymore. The customer has seen the product - warts and all. Bottom line, unless it's a multi-year contract, it's not recurring revenue. We just make it look like it is. #customersuccess #saas 👉 Want to show the value of CS to your organization? Sign up for my newsletter below.

SaaS Metrics: All in One In the image, there are a whopping 23 metrics for the SaaS business model. Each undoubtedly has its merit, but keeping track of all of them can be very challenging; my eyes start to wander. Therefore, I propose the key 5: 1️⃣ MRR - Monthly Recurring Revenue. 2️⃣ Growth rate - the rate of growth. 3️⃣ Gross MRR churn - MRR lost in the current month / MRR at the beginning of the month. 4️⃣ NRR - % of recurring revenue retained from the previous period. 5️⃣ CAC - Customer Acquisition Cost. #Saas #MRR #NRR #CAC

🔍 SaaS churn rate might seem like just another metric, but it holds the key to unlocking sustained revenue growth and preventing costly losses.   Understanding the full context around churn—beyond just the numbers—can make all the difference in your company's success. In this article, we explore the impact of churn on your business, from its effects on valuation to identifying early warning signs of customer departure and share strategies for reducing churn, improving retention, and ultimately driving your bottom line. 📈 👉 Read the article here:  https://lnkd.in/gKFRx-42 #B2BSaaS #SaaS #Churn #ChurnRate #Retention #FinancialOperations #SaaSMetrics

Good primer Rachel. The business strategy in allocating decisive resources for customer success is becoming increasingly conspicuous. I wrapped up a recent customer visit where qualified new business opps were given by referral - a direct line can be drawn from qualitative positive customer experience and success to compounding results (revenue).

ARR is more than MRR * 12. If you talk, plan, and execute from an Annual Recurring Revenue perspective, you typically have either a) annual agreements or b) annual upfront payments. Or both. Monthly Recurring Revenue is used to describe businesses that have month-to-month arrangements with its customers. It’s possible for a single company to have both types of recurring revenue. Think: online self-serve tier vs. sales-led plans (i.e., “call for pricing”). The value of those revenue streams and their associated cash flows is different which is why they are typically reported separately. Do you use ARR or MRR to describe your business? Are you using the right one? #saas Jay Nathan GrowthCurve