A Smart Bear: Startups and Marketing for Geeks

OCTOBER 4, 2016

The single most important SaaS metric is retention , because cancellations indicate lack of product/market fit, no matter the cause (price, features, severity of need, duration of need). If it cannot be fixed, it means the business is a failure even if other metrics are stellar. So, retention is most-important, regardless of stage.

Metrics 270

Metrics Retention Revenue Equity 270

View from Seed

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. Revenue growth rate of 82% year over year. 10M+ daily active users (DAUs). So Slack generated $1.43

Lock-up Period 168

Lock-up Period Retention Azure .Net 168

Steve Blank

MARCH 4, 2014

The Enterprise: Business Model Execution We know that a startup is a temporary organization designed to search for a repeatable and scalable business model. The corollary for an enterprise is: A company is a permanent organization designed to execute a repeatable and scalable business model.

IRR 335

IRR Startup Business Model Agile 335

YoungUpstarts

OCTOBER 10, 2012

Consider the superb results companies are getting from this new way of thinking about customers: - Customer salespeople achieved, in effect, 80 percent close rates for Salesforce.com , which was key in growing their business in the face of much bigger, better-funded competitors. - First, they’re loyal — that’s the price of admission.

Customer 154

Customer Fractional CTO Canada Technical Review 154

Agile VC

MAY 16, 2019

One of the key questions for me was how might Slack stack up against other great SaaS companies when it comes to average revenue per user (ARPU), and how ARPU and total addressable market (TAM) might drive Slack’s long run market cap. You can see this both by looking at a cohort “layer cake” graph or by examining the net dollar retention.

Lock-up Period 100

Lock-up Period Retention Azure .Net 100

David Teten

AUGUST 6, 2015

More reasonable: a company with a direct sales model may drive revenue growth based on the number of productive sales reps and a quota, with a target that is higher over time. A more mature organization may project future revenues based on their actual sales pipeline, with a probability adjusted percentage based on stage.

Balance Sheet 60

Balance Sheet Software Review Forecast Acquisition 60

Tim Keane

MARCH 9, 2011

If, on the other hand, there is some near term prospect of cash flow (say within six months or a year) but no ability to repay in the meantime, then the entrepreneur may try and find a way to finance his “pre-revenue period” using friends and family money that accepts a somewhat lower payment in recognition of a relationship beyond just investing.

Finance 83

Finance Bootstrapping Startup Equity 83

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 17, 2011

“LTV” means “the total revenue you’ll get from a customer over its lifetime.” ” For a simple subscription business model the formula is easy to write but hard to compute : [LTV] = [monthly revenue] × [number of months in lifetime]. So total expected revenue is $RN/ p.

Business Model 245

Business Model Metrics Engineer Technical Review 245

Growthink Blog

MARCH 1, 2016

Especially this time of year - when so many of us are assembling and committing to our professional resolutions and goals, questions arise as how to best develop financial (growth, revenues, and profits) projections for our businesses. to proposals, to sales, to retention, to ongoing revenue. H istoricals. M arket size.

Conversion Ratio 48

Conversion Ratio Business Model Retention Revenue 48

Growthink Blog

JANUARY 20, 2015

Especially this time of year - when so many of us are assembling and committing to our professional resolutions and goals, questions arise as how to best develop financial (growth, revenues, and profits) projections for our businesses. to proposals, to sales, to retention, to ongoing revenue. H istoricals. M arket size.

Conversion Ratio 48

Conversion Ratio Venture Capital Business Model Retention 48

ConversionXL

SEPTEMBER 28, 2017

Macro conversions are the primary goal of your website, to convert user traffic into revenue. On the other side of the coin, micro conversions are actions a user completes that are either on the path to revenue-generating macro conversions or not directly related to revenue-generation at all. 1) Revenue per visitor.

Metrics 121

Metrics Acquisition Conversion Revenue 121

ConversionXL

JULY 21, 2022

How did Outreach grow in just a few years to 50,000 monthly active users , $10 million in new bookings, and net revenue retention (NRR) of more than 140%? Apply these lessons to align your teams and drive revenue growth. NSM must: Lead to revenue; Reflect customer value; Measure progress. Defaulting to revenue.

Metrics 120

Metrics Acquisition Revenue .Net 120

Reid Hoffman

MARCH 19, 2019

What makes this tricky is that markets evolve, and an innovative technology or business model can transform a normal market into a Glengarry Glen Ross market. Google realized that being the way to find the world’s information was a blitzscalable market, thanks to the network effects in its AdWords revenue engine. The difference?

Cofounder 28

Cofounder Business Model IPO Non-Compete 28

ConversionXL

JUNE 2, 2022

In this article, you’ll learn how to define your ABM strategy so you can target the right accounts and increase your revenue. Think of it as a filter that helps you find the highest chance of return on investment, revenue potential, and profitability. ABM takes you from fishing with nets to fishing with a spear. Coordinated.

Customer 98

Customer Marketing Channel Acquisition 98

ConversionXL

FEBRUARY 7, 2014

When a business increases it’s webinar attendance by 1000% & net $40,000 in the first 3 sessions, you should probably listen to what they’re doing right. KISSmetrics also segments their data to find their customer’s company size, industry, business model. Increase the average order size.

Software 93

Software Churn Rate eCommerce Flash 93

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Team, Product, Traction, Business Model and Market.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Startup Lessons Learned

OCTOBER 19, 2013

They''ll typically appear to do well early on, but won''t have enough of a passionate following to achieve meaningful growth or revenues. The second question is known as the Net Promoter Score, where you ask your users, "On a scale from 0-10, how likely are you to recommend us to your friends?"

Mobile 167

Mobile Developer Technical Review Lean 167

Ben's Blog

MAY 15, 2020

Finally, we’ll zoom out and assess the big picture: how various categories of company may be impacted long-term, how this crisis compares to 2008 (and what that means for early-stage founders), and the industries and business models that are now prime for growth. We’re not going to book any revenue for the next 12 months.

Founder 36

Founder Conversion Technical Review Cash Position 36

ConversionXL

APRIL 7, 2021

Sorry, but ABM is not B2B, nor is it right for all markets, business models, or companies (just like every company should not be running freemium aka PLG for acquisition.) Is ABM right for your business? Second, you’ll want to know everything you can about big pharma company HQ, their revenue, and other relevant information.

IP 98

IP Marketing Technical Review Software Review 98

ConversionXL

OCTOBER 30, 2019

What about stages three through seven, which can generally be grouped under the “ retention ” umbrella? We know how important and valuable retention is. We’re all familiar with the classic retention stats: Acquiring new customers is 5–25 times more expensive than retaining existing customers. Speed to first value experience.

Retention 101

Retention Metrics Churn Rate Acquisition 101

ConversionXL

AUGUST 12, 2016

A flowing sales funnel is crucial in any business, but even more so with SaaS businesses… Unlike other business models, revenue is generated over an extended period of time. Monthly Recurring Revenue (MRR). MRR is probably the most critical metric for any subscription business. Revenue Churn.

Software Review 48

Software Review Metrics Revenue Acquisition 48

ConversionXL

OCTOBER 30, 2019

What about stages three through seven, which can generally be grouped under the “ retention ” umbrella? We know how important and valuable retention is. We’re all familiar with the classic retention stats: Acquiring new customers is 5–25 times more expensive than retaining existing customers. upgrading plans) or not (e.g.,

Retention 48

Retention Metrics Churn Rate Acquisition 48

maplebutter.com

JANUARY 8, 2013

Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. I would focus on one product and set a goal to generate $1M in yearly revenue from it. I don’t have any formal business training and I actually think it’s served me well.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

ConversionXL

NOVEMBER 17, 2022

In thinking about the bigger goal of digital transformation, 46% say they have been able to identify and create new product and revenue streams, and 45% of organizations are now using data and analytics to develop new business models. The company once had the market’s highest churn rate and lowest Net Promoter Score (NPS).

Analytics 106

Analytics Metrics Channel Campaign 106

ConversionXL

MARCH 5, 2014

The origins of this myth can be traced back to the 1980′s when the Technical Assistance Research Project published research that stated the cost of customer acquisition vs the cost of customer retention was significantly higher. It appears that LTV should be about 3 x CAC for a viable SaaS or other form of recurring revenue model.

Customer 133

Customer Churn Rate Retention Acquisition 133