Learn more about business with this collection
How to create a successful onboarding process
Why onboarding is crucial for customer retention
How to measure the success of onboarding
What's a Good or Bad North Star?
• Bad: Mostly measuring price paid as opposed to value delivered • MRR, paid seats
• Good: Measures value delivered in bulk • MAU, DAU, messages sent
• Better: Unquestionably indicates Product-Market fit has been reached with the customer • Number of users with L28>=16 • Messages sent w/in 30 days of signup.
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Churn is one of the most coveted and analyzed SaaS metrics on the internet so I won’t go into details here but just share this table by Tomasz Tunguz:
You can probably be even more demanding for the Enterprise segment and expect a 0–0.5% monthly customer churn (and you generally measure En...
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High Churn and lack of account expansion can kill even the fastest growing companies.
This is where the SaaS Quick Ratio comes in handy.
SaaS Quick Ratio = (New MRR + Expansion MRR) / (Churned MRR + Contraction MRR)
A Saas quick ratio superior to 4 will excite Vcs, between 2 an...
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Some companies find their PM fit faster than others. The T2D3 framework shows what it takes to grow your revenue from $1M — $2M to around $100M Arr in 6–7 years. The vast majority of Saas startups will never reach this level of growth and that’s completely fine. If you talk to “traditional” Saas ...
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Ltv stands for lifetime value and Cac stands for the customer acquisition cost. VCs expect that a customer generates at least 3 times what it cost you to acquire him (it’s a minimum).
This ratio mixes many aspects from sales and marketing efficiency to your ability to keep users (linked to ...
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The 40% rule is that your growth rate + your profit should add up to 40%. So, if you are growing at 20%, you should be generating a profit of 20%. If you are growing at 40%, you should be generating a 0% profit. If you are growing at 50%, you can lose 10%. If you are doing better than the 40% rul...
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