In theory, SMB > Enterprise
More customers, much faster sales cycles, faster PLG and viral cycles
But even 100% NRR is tough to hit with SMBs,
While 120%-140% common in Enterprise
Most SMB SaaS goes at least bit enterprise or at least into more “bigger deals” to balance it out
More customers, much faster sales cycles, faster PLG and viral cycles
But even 100% NRR is tough to hit with SMBs,
While 120%-140% common in Enterprise
Most SMB SaaS goes at least bit enterprise or at least into more “bigger deals” to balance it out
Bill.com + Shopify added payments to get > 100% NRR from SMBs
HubSpot is core SMB, but focused on high value and a $10k ACV. Not low.
Canva, Calendly, etc.’s fastest growing segment is Enterprise despite starting 100% self-service
HubSpot is core SMB, but focused on high value and a $10k ACV. Not low.
Canva, Calendly, etc.’s fastest growing segment is Enterprise despite starting 100% self-service
DataDog has gone from 5% enterprise in early days to 80% now at $1.5B in ARR: saastr.com/5-interesting-…
FreshWorks and Samsara have moved the SMB focus to $5k+ up accounts. E.g., only 25% of FreshWorks customers pay > $5K, but they are 84% of revenue: saastr.com/5-interesting-…
FreshWorks and Samsara have moved the SMB focus to $5k+ up accounts. E.g., only 25% of FreshWorks customers pay > $5K, but they are 84% of revenue: saastr.com/5-interesting-…
Net net: if you sell primarily to SMBs and you’re past say $8m-$10m ARR, your #1 question for 2022 probably should be:
What can you do to drive NRR up, to 100%, 110%, even 120%?
The answer one way or another is to provide >a lot< more value than typical SMB apps
What can you do to drive NRR up, to 100%, 110%, even 120%?
The answer one way or another is to provide >a lot< more value than typical SMB apps
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