renewtrak’s Post

💡 MRR (Monthly Recurring Revenue) is a crucial metric for any subscription-based business. It provides a predictable income stream and offers valuable insights into financial health, helping companies make smarter decisions on growth and investment. 🎯 Why is MRR so important? It allows businesses to: Forecast revenue with greater accuracy 🧠 Plan for future growth and scaling 📊 Measure the success of customer acquisition and retention efforts 🔄 For example: A SaaS company that charges $50 per month per user and has 200 active users would have an MRR of $10,000. If they onboard 20 new users this month, their MRR increases to $11,000—a clear signal of growth! 🚀 Growth in MRR can come from: - New customers joining the platform 🌱 - Upselling existing customers to higher tiers 🔝 - Reducing churn by focusing on customer satisfaction and retention 🎯 For businesses, increasing MRR means increasing the stability of the business, making it easier to invest in product development, hiring, and marketing. It’s the cornerstone of sustainable growth in today’s subscription-driven economy. 📈 #MRR #BusinessGrowth #SaaS #RevenueModel #SubscriptionEconomy #CustomerRetention #Upselling #ChurnReduction #FinancialPlanning #RecurringRevenue #ScalingBusiness

Build vs. Buy a churn tracking tool You can build a dashboard with these signals 🛑 Low core activity engagement 🛑 Email unsubscribes 🛑 Low response rate 🛑 Payment failures OR You can buy tools like Churnkey 🔄 Baremetrics 📊 Customer Success Platforms like Churnzero, CustomerScore.io * I have no affiliation I missed my at-risk customers... I don't want you to... #churn #saas #revop #productledgrowth

We’ve all heard the ‘mañana’ excuse, “Let’s re-evaluate at the next (month, quarter, year)”. Instead of constraining your #customerjourney to time events, its data-driven #execution insights should be fluid and adjustable, ready to be evaluated and improved continuously. With Uniply, you can seamlessly unify your core metrics for instant insights centered on your customer journey. Learn how from our team. #b2b #saas #unify

This execution trap is as old as time. In many cases, teams identify essential insights but wait to act on them. Sometimes it's a specific time frame, and sometimes it's about group metrics. Instead, our #unified #execution #journeys should be built to be evaluated and improved continuously. #b2b #saas

Lost time. Missed opportunities. Hidden expenses. Inefficiency in your processes could be costing you more than you realise. It’s time to streamline and save. To know more, visit www.milliondox.com #saas #businessefficiency #business #documentrepository #documentlssues #businessgrowth #documentmanagement #data #documentmanagementsystem #product #milliondox #efficiency #b2b

Customer Success is essential for businesses that depend on recurring revenue, like SaaS companies and beyond. As more companies adopt the XaaS model, the benefits of Customer Success (CS) become evident, even for those with a Pay As You Go (PAYG) approach. Business growth hinges on three key factors: - New business from new customers, typically measured in financial terms. - Expansion revenue from existing customers, expressed as a percentage of last year's revenue. - Gross churn, the percentage of recurring revenue lost due to cancellations or downgrades. Among these, churn is crucial. A high churn rate can negate the gains from sales and account growth—imagine trying to fill a leaky bucket! CS focuses on enhancing customer health measures to positively influence behaviour. Learn more about how we support growth: https://lnkd.in/eJaCJ7h7 #CustomerSuccess #RecurringRevenue #XaaS

❓“How do you track/plot a customer cohort metric like NRR quarter-on-quarter?” I recently got this question from the finance head at a $30M+ ARR company. It’s a critical requirement for both management/investors since the NRR trend shows: a) how well a SaaS company retains its customers, and b) generates incremental revenue from them over time which make it a powerful indicator of the sustainability and scalability of a business. So, what makes NRR a difficult metric to calculate? While calculating NRR for a specific cohort is pretty straightforward, tracking it across all your cohorts over time can prove tricky—more so given the many variations in defining NRR. I recommend using SaaS Metrics Standards Board’s definition which is the “% of recurring revenue retained over a specific period” (12 months typically). Here’s a 4-step process to creating a trendline of your NRR performance: 1️⃣ Define your cohort by booking quarter For example, if a customer signed the contract in Jan 2020, they belong to the Q1 2020 cohort ⚠️ Note: You can take a monthly cohort too. This completely depends on your sales velocity and deal volumes. For simplicity, I’ve gone with quarterly cohorts in this example. 2️⃣ Note down “Year-ago ARR” number for each cohort 3️⃣ Take the current ARR number for each cohort and divide it by the Year-ago ARR number from step 2 for each period (Current ARR = Year-ago ARR + Expansion ARR - Churn ARR) for a given customer cohort 4️⃣ To calculate the overall NRR, use the formula in step 3, but using the summed up cohort ARRs in each quarter and plot it on a line chart across quarters Below, in a detailed post linked in the comments, there’s more on: 🔢 How not to calculate NRR 📈 Interpreting your NRR trend ⚠️ Caveats on predictive power of NRR, and 🖥 How you can automate metrics tracking including NRR. 🙌 Shoutout to the team at SaaS Metrics Standards Board - Ray Rike, Todd Gardner, David Spitz, Ben Murray, Lauren Kelley, Dave Kellogg, Chelsea Stoner and Mary D'Onofrio for their efforts in both simplifying and standardizing these metrics for #b2bSaaS companies

A bad experience is a leading indicator of churn...what are the leading indicators of a bad experience? Any good SaaS leader knows all about leading indicators of churn but somehow we miss what's behind one of the key ones: a negative customer experience. NPS and CSAT scores give us some data but what if we really defined, monitored and worked on improving the metrics we know matter in terms of customer experience? Time to fix Sev 1 bugs, number of bugs per release, on time delivery of roadmap items, percentage of functionality per release driven by current customers... These are just a few ideas - what are others? Comment with others you can think of and DM me if you want to talk about how I help SaaS businesses define, measure and improve these metrics. #customersuccess #SaaS #GRR #retention

I will audit your free trial or user onboarding flow to identify the gaps causing people to drop out. I'm Rodrigo, and I've helped SaaS companies like Time Doctor, Method CRM, and RBCx drive over $350 million in revenue with Product-led Growth strategies. It's the little things, the nuances that are so easy to miss which often make all the difference. The analogy I use is that of a ‘leaky bucket’ These seemingly insignificant gaps might appear harmless at first, but over time, they cause a steady drip of users to slip away. Before you know it, your bucket of eager prospects has turned into a trickle of active users. DM me 'AUDIT' if you want me to catch them for you today. No call required. I'll send you a 3-5 minute walkthrough with actionable feedback so you can stop leaving money on the table. #SaaS #ProductLedGrowth #PLG #GrowthHacking #SaaSFounders #UserOnboarding #GrowthStrategy #FractionalGrowth

Developing a 𝗟𝗜𝗡𝗘 𝗢𝗙 𝗦𝗜𝗚𝗛𝗧 into SaaS Metrics: These aren't just numbers — they're the narrative backbone of the business. 👀 This graphic illustrates how aligning metrics from the LTV/CAC Ratio to NRR across all levels — from the boardroom to the dev team — drives strategic coherence and sustainable success. 👇 📊 𝗜𝗡𝗩𝗘𝗦𝗧𝗢𝗥 𝗠𝗘𝗧𝗥𝗜𝗖𝗦: The LTV/CAC Ratio and Magic Number go beyond mere calculations; they signify the trust and confidence investors have in the vision. 💹 𝗙𝗜𝗡𝗔𝗡𝗖𝗜𝗔𝗟 𝗠𝗘𝗧𝗥𝗜𝗖𝗦: NRR, ARR, and CAC provide a real-time pulse on the growth and customer engagement, serving as the navigational tools for sustainability. 📈 𝗣𝗘𝗥𝗙𝗢𝗥𝗠𝗔𝗡𝗖𝗘 𝗠𝗘𝗧𝗥𝗜𝗖𝗦: This is where we evaluate the impact of every dollar and effort, aiming to enhance the operations to be both efficient and effective. 🚀 𝗚𝗧𝗠 𝗠𝗘𝗧𝗥𝗜𝗖𝗦: This is where strategy is put into motion. Managing campaign costs and conversion rates helps transform the plans into meaningful customer experiences. 🔢 𝗗𝗔𝗧𝗔 𝗠𝗢𝗗𝗘𝗟: The data model does more than compile numbers—it crafts a story that mirrors the values and guides every strategic decision, propelling the business toward broader goals. #corpdev #partnerships #saas #b2b #privateequity #strategy Figure credit: Jacco van der Kooij