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churn

Churn:  Net-First or Sum-First?

Churn:  Net-First or Sum-First?

By Dave Kellogg on November 10, 2014

While I’ve already done a comprehensive post on the subject of churn in SaaS companies and some perils in how companies analyze it, in talking with fellow SaaS metrics lovers of late, I’ve discovered a new problem that isn’t addressed by my posts. The question?   When calculating churn, should you sum first (adding up all the […]

Posted in Business, Featured Posts | Tagged churn, Churn rate, Metrics, SaaS, software as a service

You Can’t Analyze Churn by Analyzing Churn

You Can’t Analyze Churn by Analyzing Churn

By Dave Kellogg on July 28, 2014

One thing that amazes me is when I hear people talk about how they analyze churn in a cloud, software as a service (SaaS), or other recurring revenue business. You hear things like: “17% of our churn comes from emerging small business (ESB) segment, which is normal because small businesses are inherently unstable.” “22% of our […]

Posted in Business, Featured Posts | Tagged churn, Churn rate, Cloud, Halo Effect, Metrics, SaaS | 1 Response

Measuring SaaS (or Cloud) Renewal Rates: Way More Than Meets the Eye

Measuring SaaS (or Cloud) Renewal Rates: Way More Than Meets the Eye

By Dave Kellogg on October 4, 2013

I love cloud computing. I love metrics. And I love renewals. So when I went looking on the Web for a great discussion of SaaS renewals and metrics I was surprised not to find much. Certainly, I found the two classics on SaaS metrics: The Bessemer Venture Partners 10 Laws of Cloud Computing white paper, […]

Posted in Business, Featured Posts | Tagged ARR, churn, Churn rate, Cloud, leaky bucket, SaaS, software as a service | 1 Response

Measure Your Churn.  But What’s Even More Important is to Measure Your Almost Churn.  5 Tricks to Help You Here.

Measure Your Churn. But What’s Even More Important is to Measure Your Almost Churn. 5 Tricks to Help You Here.

By Jason M. Lemkin on March 14, 2013

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? […]

Posted in Business | Tagged churn, Churn rate, Entrepreneurship, Net Promoter Score, SaaS, startups | 2 Responses

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