INDUSTRY INSIGHTS YOUR PEERS ARE READING
percent average conversion rate. 5 percent monthly churn rate. I’ve seen hundreds of startups pitch to angel investors and venture capitalists, and most of them—at best— are just okay. MORE
Conversions, leads and churn rate. Nick is the founder and CEO of Delmondo. He works with brands and startups improving their digital marketing and social media strategy, focusing on branded content. MORE
If a VC meets with 40 eCommerce companies and has the data room on all of them (downloaded on to his or her system) then when they DO finally dig in on an investment opportunity they can compare information such as CACs, LTVs, churn rates, margins, etc. MORE
Calculating Your Customer Retention Rate. If you’ve been doing business longer than a few months pay attention to your customer retention rates. In order to calculate your customer retention rate you need to know: Number of customers at the end of the period – E. MORE
Your churn rates are too high. Last year I wrote a blog post on entrepreneurs with a chip on their shoulders. I think it’s an important read. MORE
Customer happiness is the lifeblood of any business — after all, happy customers mean lower churn rates, increased word-of-mouth marketing, a boost for internal morale, and so much more. by Allison Yount, Director of Customer Success at Scout RFP. MORE
Your churn rates are too high. You Need to Find Your Mojo A Chip On Your Shoulder A few years ago I wrote a blog post on entrepreneurs with a chip on their shoulders. I think it’s an important read. MORE
Churn and Churn Rate. Churn is the number of customers that cancel your service in a given month – when they leave, they’ve “churned out” and are no longer subscribing to your service. Churn rate is the percentage of customers that leave every month. MORE
“The customer” will renew with some fixed probability equal to the average retention rate. So let’s say that a group of 100 people all join a mobile phone plan in the same year and that the overall retention rate is 85%. MORE
These metrics can be obtained through analysing a conversion rate. Another kind of metric in this group is the churn rate which shows all the losses, e.g. in revenue, customers, etc. by Beata Green, Director of HeadChannel. MORE
especially about churn rates and your high CACs last quarter relative to the previous year. You had an amazing meeting with an investor. Your product demo crushed. The dialog was great. They told you how much they loved your space. MORE
Reduce churn. Churn is essentially your cancellation rate. The percentage of your paying customers that cancel is your churn rate. Obviously, a lower churn rate is better. Improve signup rates. MORE
There are various reasons as to why fast-growing startups spend time monitoring their customer success rate. But the major reason they do it is because they have experienced and survived what we call a company killing churning crisis. When customer churn spikes, it creates a panic. MORE
StartupCFO , May 6, 2010 Great look at important metrics for SaaS and the importance of churn rate Continuing my series of posts that I’ve been collecting that live at the intersection of Startups, Startup Development and being a Startup CTO. Here are a couple of the other collections: 16 Great Startup Posts from March , Startup CTO Top 30 Posts for April. MORE
If, for example, the business objective is to significantly lower the customer churn rate, then that’s the team’s mission. Reducing the churn rate can definitely be a hard problem, and there are likely any number of ways to approach fixing this. In my last article I discussed the trade-offs between the sometimes conflicting goals of team autonomy versus leverage. MORE
Our churn was pretty bad. Our total number of customers immediately began falling; fewer people signed up while our churn rate remained the same. Let me restate that: with the same amount of churn and fewer signups, we made more money. MORE
Totango SaaS Executive Dashboard captures the current SaaS best practices around monitoring customer engagement and customer success and tracks visitors, signups, activations, conversions and your SaaS churn rate. MORE
The biggest driver for high LTV is repeat purchase behavior (in an e-commerce business) respectively a low churn rate (in a SaaS company). In addition, churn tends to rise as a company grows. News $100 million Churn rate e-commerce Facebook LTV marketplaces network effects Software as a service viral coefficient Viral marketing Zynga MORE
More importantly, a subscription business model enables you to manage the cash flow, upgrade your business planning and optimize metrics such as churn rates, the lifetime value of a customer, expansion, and more. by Stefan Pretty, founder of Subbly. MORE
And they realized that the use of the Tidepool software could reduce the device companies’ customer churn rate by at least 1%. We talk a lot about Customer Development, but there’s nothing like seeing it in action to understand its power. MORE
Churn. The rate at which a customer cancels over a given year indicates whether your value proposition is resonating with your customers. They’ll segment their customers to analyze churn by category. Enterprise startups should aim for an annual churn rate under 10 percent. MORE
You can find the full 2017 survey results here: Part 1 shares growth rates, go-to-market trends and cost structure Part 2 covers application delivery methods, operational costs, gross margins, contract terms, churn rates, capital requirements and accounting methods. The third annual forEntrepreneurs SaaS Survey Infographic shares top highlights from this year’s SaaS Survey results! MORE
According to an article published by Forbes, metrics that play a critical role in any startup management includes revenue run rate, average revenue per user, customer acquisition rate, churn rate, and operation efficiency. by Cameron Johnson. MORE
CAC and payback period are key inputs into the financial model which works out how much cash a company will burn each month at a given growth rate, and therefore whether a company can get past key revenue milestones before they need to raise their next round. MORE
Professional services = higher rate of successful rollouts. The more your product is integrated with other systems the lower your churn rate will be. Professional services + systems integration = lower churn. This article initially appeared on TechCrunch. MORE
Churn Rate. But many first time SaaS merchants overlook churn or don’t even know what churn is. We will explore the ins and outs of churn and tell you how to fight it. What is churn rate? In a perfect world, churn wouldn’t exist. MORE
Following Lincoln Murphy’s post on SixteenVentures.com (talking about conversion average rate for free trials, pricing pages or Freemium for SaaS or Web Apps), conversion rate average figures will do no good, as it doesn’t reflect the whole picture and usually lacking context. MORE
Products that are critical to the daily workflow, like business management software and collaboration tools, tend to have the lowest churn rates. Photo credit: Wade Brooks Repeat usage is one of the most important success factors for building a large, stand-alone company. MORE
We worked together with Pacific Crest, an investment banking firm with a specific focus on SaaS, to survey 155 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. Business Model SaaS CAC churn MORE
High churn rates. High return rates. High referral rates. When I wrote last night about Growing the right way I said that startups should aim to grow sustainably. MORE
Reducing churn rate. So you can more safely worry about fewer metrics on an eCommerce site, like increasing AOV or conversion rate (not that it’s easy to increase these). However it comes with its own set of challenges, like retention and churn. Churn. MORE
On the flip side of engagement, we can look at churn as a measure of the number of individuals moving out of a collective group over a specific period of time. Churned users can be segmented as follows: Total Churned Users = New Churned Users + Old Churned Users. MORE
It may include profitability, but it more likely will focus on increasing growth, or reducing churn rate, or driving up engagement, or driving revenue, or any number of other possible goals. One question that I continue to get from many company leaders is whether or not product managers should be given P&L responsibility for their products. MORE
Providing proper expectations will minimize the churn rate. Let’s say you have zero traction, an unknown product, and no budget to speak of. Perhaps not the most desirable position to be in, but at least you have some resources to tap into: time and creativity. MORE
This week we dive into the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates, capital requirements and accounting […]. Last week I shared the results from Part 1 of our survey in which 300+ SaaS companies shared data on their growth and go-to-market strategies. MORE
Building for Success SaaS Sales & Marketing Machine Startup Help churn churn rate Cost of Customer Acquisition customer engagement SaaS business SaaS churn SaaS churn rate SaaS customer engagement saas marketing SaaS sales SaaS VCThe goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC). MORE
But it’s surprising to me how many companies with recurring/subscription revenue don’t understand the interactions between the elements that make up customer acquisition cost (CAC), churn and lifetime value (LTV). (Guest post by Gordon Daugherty. MORE
Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%? MORE
But if you don’t – now you have many cynical VCs lining up critiquing your CAC/LTV ratios, your churn rates, your poor performing cohorts. VC funding. Our perspectives on the topic wax and wane with market cycles. MORE
For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. If you’re running a subscription business , you’ll want to track churn rate, monthly recurring revenue, lifetime value, and so on. What Is Cash Burn Rate? MORE
Calculating your loan-to-value ratio (LTV) requires clear data, including revenue collected from a customer in a given period, profit margin, churn rate, and retention costs. by Hagan Major , president and chief operating officer of YellowHammer. MORE
This week I’m sharing the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates, capital requirements and accounting methods. Last week I posted the results from Part 1 of our survey in which 300+ SaaS companies shared data on their growth and go-to-market strategies. MORE
One of these was around churn – he asserted that one of the clear weaknesses of the business was the high churn rate. He didn’t have a high churn rate at all – in fact, his churn rate after a customer was paying for three months was minimal. Instead of articulating a powerful story about low customer acquisition costs with minimal downstream churn, he lead with “the worst problem with the business is our high churn rate.” MORE
In my mind some of these key variables include new bookings, growth of deferred revenue, churn rate, cost of acquiring new customers, and obviously cash. Another area that is quite important is churn rate. If your company churns or loses 5% of customers every month, then during the course of the year the company will have to replace a significant number of customers just to maintain status quo. MORE
Churn Rate Related Topics 
YoungUpstarts
APRIL 5, 2013
Churn Rate. But many first time SaaS merchants overlook churn or don’t even know what churn is. We will explore the ins and outs of churn and tell you how to fight it. What is churn rate? In a perfect world, churn wouldn’t exist.
For Entrepreneurs
SEPTEMBER 19, 2011
Building for Success SaaS Sales & Marketing Machine Startup Help churn churn rate Cost of Customer Acquisition customer engagement SaaS business SaaS churn SaaS churn rate SaaS customer engagement saas marketing SaaS sales SaaS VCThe goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC).
Version One Ventures
SEPTEMBER 19, 2012
The biggest driver for high LTV is repeat purchase behavior (in an e-commerce business) respectively a low churn rate (in a SaaS company). In addition, churn tends to rise as a company grows. News $100 million Churn rate e-commerce Facebook LTV marketplaces network effects Software as a service viral coefficient Viral marketing Zynga
Guy Nirpaz
SEPTEMBER 14, 2011
Following Lincoln Murphy’s post on SixteenVentures.com (talking about conversion average rate for free trials, pricing pages or Freemium for SaaS or Web Apps), conversion rate average figures will do no good, as it doesn’t reflect the whole picture and usually lacking context.
Guy Nirpaz
OCTOBER 10, 2011
Totango SaaS Executive Dashboard captures the current SaaS best practices around monitoring customer engagement and customer success and tracks visitors, signups, activations, conversions and your SaaS churn rate.
For Entrepreneurs
SEPTEMBER 4, 2013
We worked together with Pacific Crest, an investment banking firm with a specific focus on SaaS, to survey 155 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. Business Model SaaS CAC churn
For Entrepreneurs
OCTOBER 31, 2017
You can find the full 2017 survey results here: Part 1 shares growth rates, go-to-market trends and cost structure Part 2 covers application delivery methods, operational costs, gross margins, contract terms, churn rates, capital requirements and accounting methods. The third annual forEntrepreneurs SaaS Survey Infographic shares top highlights from this year’s SaaS Survey results!
For Entrepreneurs
OCTOBER 22, 2014
This week we dive into the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates, capital requirements and accounting […]. Last week I shared the results from Part 1 of our survey in which 300+ SaaS companies shared data on their growth and go-to-market strategies.
Feld Thoughts
MARCH 10, 2012
One of these was around churn – he asserted that one of the clear weaknesses of the business was the high churn rate. He didn’t have a high churn rate at all – in fact, his churn rate after a customer was paying for three months was minimal. Instead of articulating a powerful story about low customer acquisition costs with minimal downstream churn, he lead with “the worst problem with the business is our high churn rate.”
Up and Running
OCTOBER 3, 2014
Churn and Churn Rate. Churn is the number of customers that cancel your service in a given month – when they leave, they’ve “churned out” and are no longer subscribing to your service. Churn rate is the percentage of customers that leave every month.
The Next Web
FEBRUARY 21, 2015
Conversions, leads and churn rate. Nick is the founder and CEO of Delmondo. He works with brands and startups improving their digital marketing and social media strategy, focusing on branded content.
Seeing Both Sides
OCTOBER 24, 2015
Since I see a few common patterns of mistakes, I thought I'd add to the LTV literature and point out the top three reasons many investors roll their eyes when they see entrepreneurs present inflated, poorly constructed LTVs: 1) Your churn rate is understated. A monthly churn rate of 1%?
A Smart Bear: Startups and Marketing for Geeks
FEBRUARY 11, 2014
But it’s surprising to me how many companies with recurring/subscription revenue don’t understand the interactions between the elements that make up customer acquisition cost (CAC), churn and lifetime value (LTV). (Guest post by Gordon Daugherty.
YoungUpstarts
DECEMBER 4, 2017
Customer happiness is the lifeblood of any business — after all, happy customers mean lower churn rates, increased word-of-mouth marketing, a boost for internal morale, and so much more. by Allison Yount, Director of Customer Success at Scout RFP.
Steve Blank
DECEMBER 2, 2013
And they realized that the use of the Tidepool software could reduce the device companies’ customer churn rate by at least 1%. We talk a lot about Customer Development, but there’s nothing like seeing it in action to understand its power.
The Equity Kicker
SEPTEMBER 26, 2013
High churn rates. High return rates. High referral rates. When I wrote last night about Growing the right way I said that startups should aim to grow sustainably.
The Equity Kicker
SEPTEMBER 29, 2016
CAC and payback period are key inputs into the financial model which works out how much cash a company will burn each month at a given growth rate, and therefore whether a company can get past key revenue milestones before they need to raise their next round.
Both Sides of the Table
MAY 9, 2018
especially about churn rates and your high CACs last quarter relative to the previous year. You had an amazing meeting with an investor. Your product demo crushed. The dialog was great. They told you how much they loved your space.
Version One Ventures
SEPTEMBER 28, 2015
On the flip side of engagement, we can look at churn as a measure of the number of individuals moving out of a collective group over a specific period of time. Churned users can be segmented as follows: Total Churned Users = New Churned Users + Old Churned Users.
Up and Running
FEBRUARY 12, 2019
percent average conversion rate. 5 percent monthly churn rate. I’ve seen hundreds of startups pitch to angel investors and venture capitalists, and most of them—at best— are just okay.
YoungUpstarts
AUGUST 24, 2017
More importantly, a subscription business model enables you to manage the cash flow, upgrade your business planning and optimize metrics such as churn rates, the lifetime value of a customer, expansion, and more. by Stefan Pretty, founder of Subbly.
YoungUpstarts
AUGUST 2, 2016
These metrics can be obtained through analysing a conversion rate. Another kind of metric in this group is the churn rate which shows all the losses, e.g. in revenue, customers, etc. by Beata Green, Director of HeadChannel.
Version One Ventures
MARCH 13, 2013
Products that are critical to the daily workflow, like business management software and collaboration tools, tend to have the lowest churn rates. Photo credit: Wade Brooks Repeat usage is one of the most important success factors for building a large, stand-alone company.
Both Sides of the Table
AUGUST 20, 2015
But if you don’t – now you have many cynical VCs lining up critiquing your CAC/LTV ratios, your churn rates, your poor performing cohorts. VC funding. Our perspectives on the topic wax and wane with market cycles.
YoungUpstarts
SEPTEMBER 7, 2014
Churn. The rate at which a customer cancels over a given year indicates whether your value proposition is resonating with your customers. They’ll segment their customers to analyze churn by category. Enterprise startups should aim for an annual churn rate under 10 percent.
SVPG
AUGUST 10, 2014
It may include profitability, but it more likely will focus on increasing growth, or reducing churn rate, or driving up engagement, or driving revenue, or any number of other possible goals. One question that I continue to get from many company leaders is whether or not product managers should be given P&L responsibility for their products.
YoungUpstarts
SEPTEMBER 11, 2016
According to an article published by Forbes, metrics that play a critical role in any startup management includes revenue run rate, average revenue per user, customer acquisition rate, churn rate, and operation efficiency. by Cameron Johnson.
SoCal CTO
MAY 18, 2010
StartupCFO , May 6, 2010 Great look at important metrics for SaaS and the importance of churn rate Continuing my series of posts that I’ve been collecting that live at the intersection of Startups, Startup Development and being a Startup CTO. Here are a couple of the other collections: 16 Great Startup Posts from March , Startup CTO Top 30 Posts for April.
The Startup Magazine
MAY 22, 2018
There are various reasons as to why fast-growing startups spend time monitoring their customer success rate. But the major reason they do it is because they have experienced and survived what we call a company killing churning crisis. When customer churn spikes, it creates a panic.
Up and Running
JULY 27, 2016
Reduce churn. Churn is essentially your cancellation rate. The percentage of your paying customers that cancel is your churn rate. Obviously, a lower churn rate is better. Improve signup rates.
Both Sides of the Table
MAY 19, 2018
If a VC meets with 40 eCommerce companies and has the data room on all of them (downloaded on to his or her system) then when they DO finally dig in on an investment opportunity they can compare information such as CACs, LTVs, churn rates, margins, etc.
Up and Running
FEBRUARY 20, 2015
For example, if you have an eCommerce website , you’ll want to measure unique visitors, referrals, bounce rate, and similar. If you’re running a subscription business , you’ll want to track churn rate, monthly recurring revenue, lifetime value, and so on. What Is Cash Burn Rate?
YoungUpstarts
JUNE 3, 2016
Calculating your loan-to-value ratio (LTV) requires clear data, including revenue collected from a customer in a given period, profit margin, churn rate, and retention costs. by Hagan Major , president and chief operating officer of YellowHammer.
BeyondVC
DECEMBER 10, 2009
In my mind some of these key variables include new bookings, growth of deferred revenue, churn rate, cost of acquiring new customers, and obviously cash. Another area that is quite important is churn rate. If your company churns or loses 5% of customers every month, then during the course of the year the company will have to replace a significant number of customers just to maintain status quo.
ConversionXL
MARCH 5, 2014
Calculating Your Customer Retention Rate. If you’ve been doing business longer than a few months pay attention to your customer retention rates. In order to calculate your customer retention rate you need to know: Number of customers at the end of the period – E.
Both Sides of the Table
MARCH 19, 2013
Professional services = higher rate of successful rollouts. The more your product is integrated with other systems the lower your churn rate will be. Professional services + systems integration = lower churn. This article initially appeared on TechCrunch.
SVPG
APRIL 6, 2015
If, for example, the business objective is to significantly lower the customer churn rate, then that’s the team’s mission. Reducing the churn rate can definitely be a hard problem, and there are likely any number of ways to approach fixing this. In my last article I discussed the trade-offs between the sometimes conflicting goals of team autonomy versus leverage.
Both Sides of the Table
JULY 27, 2013
Your churn rates are too high. Last year I wrote a blog post on entrepreneurs with a chip on their shoulders. I think it’s an important read.
Both Sides of the Table
MAY 7, 2016
Your churn rates are too high. You Need to Find Your Mojo A Chip On Your Shoulder A few years ago I wrote a blog post on entrepreneurs with a chip on their shoulders. I think it’s an important read.
Up and Running
MAY 28, 2015
Providing proper expectations will minimize the churn rate. Let’s say you have zero traction, an unknown product, and no budget to speak of. Perhaps not the most desirable position to be in, but at least you have some resources to tap into: time and creativity.
ConversionXL
NOVEMBER 15, 2016
Reducing churn rate. So you can more safely worry about fewer metrics on an eCommerce site, like increasing AOV or conversion rate (not that it’s easy to increase these). However it comes with its own set of challenges, like retention and churn. Churn.
The Next Web
DECEMBER 6, 2013
Our churn was pretty bad. Our total number of customers immediately began falling; fewer people signed up while our churn rate remained the same. Let me restate that: with the same amount of churn and fewer signups, we made more money.
YoungUpstarts
NOVEMBER 4, 2011
“The customer” will renew with some fixed probability equal to the average retention rate. So let’s say that a group of 100 people all join a mobile phone plan in the same year and that the overall retention rate is 85%.
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