Measure Your Churn. But What’s Even More Important is to Measure Your Almost Churn. 5 Tricks to Help You Here.
Churn is a paramount topic in SaaS, as we all know. If every dollar of ARR is worth $6+ in the long term, including upsells and second order revenue … then of course, by the same token, for every dollar of ARR that churns … you’re losing $6 of notional ARR. Lose a $100k customer? [...]
Can We Ignore Churn Early On at a SaaS Company?
Jason Lemkin has my juices flowing again. He’s published a blog post with the suggestion that you should ignore churn and length of sales cycle as key management metrics when a SaaS company is young. I’m with him on the Sales Cycle–it’ll be all over the map in the early days. But on churn? Nope, [...]
Freemium Mechanics
I read an interesting blog post by Ruben Gamez titled Why Free Plans Don’t Work. If you are interested in freemium business models or any of the variations on the theme, this is well worth reading however I take issue with a couple of points. First and foremost, Gamez uses a statistics breakdown (in %) [...]
