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@uifeed.com
Subscribed 4 years, 2 months ago
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What is a good customer churn rate? It depends on who you sell to. The lower the average revenue per account (ARPA), the higher the customer churn rate.
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SaaS Roundup #377
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Hi there,
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<p style="margin:0;margin-bottom:24px">
Today's Roundup has something for everyone.
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<p style="margin:0;margin-bottom:24px">
This week, we cover advice and reads on evolving your sales team, AI pricing, building a consumer subscription business, and how much to pay yourself.
</p>
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Happy reading
</span>
,
<br/>
<strong>
Sid @ ChartMogul
</strong>
</p>
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New from ChartMogul.
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Scaling the Sales Tech Stack
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Peter Curac-Dahl
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<p style="margin:0;font-size:14px;mso-line-height-alt:25.2px;letter-spacing:normal">
Four experts from Segment, Capchase, Accord, and ChartMogul sit down to discuss sales tech stacks, evolving your sales team, and some common mistakes organizations make building sales teams and purchasing software.
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"I think people hire revenue ops way too late. I think a big mistake folks make is trying to piece together lots of different people working on not only the sales tech stack but also the process. It’s really important to have someone who has a bird’s eye view of how all these things connect together."
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Our top SaaS reads.
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Management
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How Much Should You Pay Yourself?
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<span style="font-size:13px;">
Christoph Janz, Point Nine Capital
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“How much should I pay myself?” is a question that every founder needs to answer, and there has been little data or guidance available. Here is a post that shares all the facts and numbers.
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<br/>
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"This analysis is based on 728 data points provided by Figures. As expected, founder salaries depend highly on your stage. At the seed stage, most founder salaries are in the €70–100k range."
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Product
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<a rel="noopener" style="text-decoration: none; color: #1c79ed;" target="_blank">
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How to Build a Successful Consumer Subscription Business
</span>
</a>
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<p style="margin:0;mso-line-height-alt:32.4px">
<span style="color:#999999;">
<span style="font-size:13px;">
Casey Winters, Every.to
</span>
</span>
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<p style="margin:0;mso-line-height-alt:25.2px">
</p>
<p style="margin:0;mso-line-height-alt:23.400000000000002px">
Consumer subscription businesses are hard. Churn is higher, average revenue per customer lower, and net dollar retention non-existent. Here is how you could still build a successful B2C business.
</p>
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"How to overcome the systemic challenges of consumer subscription: i) Leverage network effects to solve retention and acquisition issues; ii) Go multi-product earlier in your lifecycle to make the product stickier and raise the price; iii) Open up less saturated acquisition channels."
</div>
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Pricing
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<span style="font-size:18px;">
<a rel="noopener" style="text-decoration: none; color: #1c79ed;" target="_blank">
How Does AI Actually Make Money?
</a>
<a rel="noopener" style="text-decoration: none; color: #1c79ed;" target="_blank">
</a>
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<p style="margin:0;mso-line-height-alt:32.4px">
<span style="color:#999999;">
<span style="font-size:13px;">
CJ Gustafon, Mostly Metrics
</span>
</span>
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<p style="margin:0;mso-line-height-alt:23.400000000000002px">
AI is all the rage in the SaaS world right now. But how does it help you make money and improve your metrics?
</p>
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</div>
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</tbody>
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"I recommend that you avoid over-indexing on saving time as your value proposition. Among the AI-enabled application vendors who are monetizing, the general trend is toward “hybrid” pricing based on a combination of user seats and overall usage."
</div>
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<strong>
Chart of the week.
</strong>
</h1>
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<div style="font-family:Arial,sans-serif">
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<p style="margin:0;font-size:14px;mso-line-height-alt:25.2px">
<span style="font-size:14px;">
<span style="font-size:14px;">
<strong style="font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-family:'Helvetica Neue',Helvetica,Arial,sans-serif;font-size:14px">
What is a good customer churn rate?
</strong>
<span style="font-size:14px;">
It depends on who you sell to. The lower the average revenue per account (ARPA), the higher the customer churn rate. Generally, B2C companies have ARPA <$25/month while B2B companies have an ARPA >$25/month.
</span>
</span>
</span>
</p>
<p style="margin:0;font-size:14px;mso-line-height-alt:25.2px">
</p>
<p style="margin:0;font-size:14px;mso-line-height-alt:25.2px">
<span style="font-size:14px;">
<span style="font-size:14px;">
<span style="font-size:14px;">
To be among the best, B2C companies should target a customer churn rate of less than 3-4% per month. This goes down to 1-2% for B2B businesses.
</span>
</span>
</span>
</p>
</div>
</div>
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</tbody>
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Source:
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ChartMogul SaaS Benchmarks Report
</a>
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2 years, 8 months ago - sid@chartmogul.com
🚀 SaaS Roundup: Evolving Your Sales Team, Founder Salaries, B2B vs. B2C Churn, & AI Pricing
What is a good customer churn rate? It depends on who you sell to. The lower the average revenue ...