We know churn is bad for our SaaS company. Yes, we are losing customers and revenue. This impacts growth, metrics, and cash to name a few. I’d like to dive into the financial details as to why churn is a SaaS killer. We hear a lot of rules of thumb in SaaS. Those can be […]
Churn
Five Critical Reports to Manage Your SaaS Business
There are hundreds of reports that we could create to manage our SaaS businesses. In fact, I’m sure our CRM, accounting, and BI systems are littered with reports that no longer see the light of day. With so much data trapped in our SaaS business, it can be extremely hard to limit our focus to […]
How to Calculate Churn and Retention in SaaS
Guide to Churn and Retention Metrics You’ve often heard that churn is a company killer for SaaS and subscription businesses. To be more specific, high customer churn and long CAC payback periods will most definitely burn through your cash and ultimately lead to the demise of your business. Therefore, it’s critical to track, monitor and […]
Two Key SaaS Metrics that Predict Your Company’s Potential Size
Two Key SaaS Metrics that Predict Your Company’s Potential Size I remember as a kid when doctors would try to predict your full-grown height based on a few measurements. Well, what if I told you I can do the same thing for your SaaS company but with more accuracy? Give me three numbers, and I […]
Achieving Profitability in SaaS
Achieving Profitability in SaaS Underneath the hood, SaaS economics can get a little tricky and nuanced. Based on the economic realities of your business, do you know how fast (or slow) you are achieving profitability in SaaS? How fast a SaaS company can reach gross margin profitability is based on key SaaS metrics such as […]