Everyone talks about hitting 120%+ NRR these days
But truth is, single seat users & very small businesses churn at a high rate. Often 3% a month.
Squarespace has 85% NRR, for example
That hurts. But because it’s so high, just doing >better< can have a huge impact.
5 Ideas:
But truth is, single seat users & very small businesses churn at a high rate. Often 3% a month.
Squarespace has 85% NRR, for example
That hurts. But because it’s so high, just doing >better< can have a huge impact.
5 Ideas:
#1. Add a Team Account.
Most of you do this, but team accounts, done right, usually have 100%+ NRR. We’ve talked a lot about this on SaaStr and @DavidSacks did a great recent piece here too:
sacks.substack.com/p/individuals-…
Most of you do this, but team accounts, done right, usually have 100%+ NRR. We’ve talked a lot about this on SaaStr and @DavidSacks did a great recent piece here too:
sacks.substack.com/p/individuals-…
#2. Make Your Product More Important
Wix and Squarespace added e-commerce, not just websites
Bill added more and more payments functionality (mission-critical), and grew NRR to 110% and then 120%:
saastr.com/5-interesting-…
Wix and Squarespace added e-commerce, not just websites
Bill added more and more payments functionality (mission-critical), and grew NRR to 110% and then 120%:
saastr.com/5-interesting-…
#3. Make Your Free Version Better — & More Free
Slack + Zoom have shown us sometimes its easier to just not even try to monetize very bottom. Instead, let them be happy & upgrade when really need you
I’ve seen also at Mixmax, Algolia, RevenueCat, etc:
saastr.com/free-plans-are…
Slack + Zoom have shown us sometimes its easier to just not even try to monetize very bottom. Instead, let them be happy & upgrade when really need you
I’ve seen also at Mixmax, Algolia, RevenueCat, etc:
saastr.com/free-plans-are…
#4. Allow Effortless Downgrades
A lot of VSBs don’t really leave forever. Just for a while. If you make it even easier to leave than to pay … that dramatically increases odds they pay again when ready
Shopify & others showed us during Covid it works:
saastr.com/as-a-saas-comp…
A lot of VSBs don’t really leave forever. Just for a while. If you make it even easier to leave than to pay … that dramatically increases odds they pay again when ready
Shopify & others showed us during Covid it works:
saastr.com/as-a-saas-comp…
#5. Provide Great Support
This is your superpower as startup. You can pick up phone. You can do live chat. Get back to folks in real-time
Later, sadly, almost everyone gives up on this
But you can throw a few more resources at this. They will stay
saastr.com/to-have-great-…
This is your superpower as startup. You can pick up phone. You can do live chat. Get back to folks in real-time
Later, sadly, almost everyone gives up on this
But you can throw a few more resources at this. They will stay
saastr.com/to-have-great-…
More thoughts on how to drive down churn here:
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