In this article, I’ll define net revenue retention, show you how to calculate it, explain why it’s important, and show you how to use it to manage your SaaS company. What Is Net Revenue Retention in SaaS? Net revenue retention (NRR) is a key performance indicator that measures the combination of two things: How well […]
Net Revenue Retention and Why It Matters Read More »
Customer lifetime value is a metric that adds up all the sales expected from a customer over the lifespan of their relationship with your company. This metric is abbreviated as CLV or LTV. CLV is extremely useful in businesses that have subscription billing models and/or high repeat-purchase rates. What Is LTV in SaaS? In SaaS, lifetime value
The Incredible Impact of Customer Lifetime Value in SaaS Read More »
In this briefing, I’ll share my thoughts on how SaaS companies can prepare to navigate a potentially inflationary environment. Before I do so, let me share my background on this topic. I received an undergraduate degree in quantitative economics. My macroeconomics professor was the #2 economist at the Federal Reserve and was one of those
How to Run a SaaS Business During Inflation Read More »
Venture debt has become an increasingly popular way to finance SaaS businesses. Venture debt lenders typically lend more than a traditional bank loan or line, but they require a higher interest rate (and often warrants to buy stock in your company) in exchange for the higher risk. There is a time and place for debt financing.
When to Use SaaS Venture Debt Financing Read More »
When you have a product that works, it solves the customers’ problems, and the customers are happy, congratulations, you’ve just achieved product-market fit. The question is: What’s next? The obvious but slightly simplistic answer is to generate sales. While this is certainly true, how you generate sales makes an enormous difference in whether you’ll be
After Minimum Viable Product (MVP) Read More »
Many SaaS companies have a demand generation function within marketing. I think the term “demand generation” is terribly misguided. There is no such thing as generating demand. Demand either exists or does not. If demand exists in the marketplace, it can be channeled to your company via lead generation mechanisms — such as cold calling,
SaaS: Demand vs. Lead Generation Read More »
