Campbell: SaaS firms spend under 10% on retention and zero on pricing
Patrick Campbell · The Current State of SaaS Companies, Subscriptions, and Retention in 2021 | ProfitWell Founder & CEO · Feb 18, 2021 · at 5:20
ProfitWell Founder & CEO Patrick Campbell breaks down benchmark data on SaaS spending allocations across pricing and retention.
0:00 / 0:10exact quote · 10.3s
▶ Watch the full episode on YouTube → 720p mp4 · rendered on demand · StarZero watermark
“When we looked at other pieces such as monetization, basically no budget, no time, no head count was going to pricing. And then ultimately retention was a little bit better about five to 10% of a budget.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Patrick Campbell
Campbell: Pre-expiration warning emails increase SaaS cancellations by 10% to 20%
“Right now, most people sending emails before the point of failure, it increases active cancellations by 10 to 20%. And we've seen that pretty unequivocally.”
Campbell: Improving monetization or retention 1% has a 4-8x revenue impact
“If you improve your revenue per customer, your monetization, or your overall retention by about one percent, you're actually going to see about a four to eight X impact on your revenue.”
Campbell: Product leaders should treat customer research like prosecuting attorneys, not blindly obey it
“When you're doing customer research, you are not making decisions based on what your customer says. That's not your job. Your job is to get the information, understand where they are, almost being a prosecuting attorney, and then filtering that information and…”
Campbell: Top SaaS companies get 20%+ of new monthly revenue from expansion
“The best subscription companies, specifically SAS companies out there, 20% or more of their revenue each month is, or new revenue each month is coming from their existing customer base through add ons expansion, some sort of add on.”
Campbell: Multi-product SaaS companies grow 30-50% faster than single-product peers
“Multi-product companies between 10 and a hundred million in annual revenue, they typically grow at a 30 to 50% higher growth rate than those folks who are single product.”
Campbell: Features used by under 40% of users should become paid add-ons
“Any feature or functionality that is used by 40% or less of your customer base or that particular group so a tier, if you have a feature in there, anything that's used 40% or less, that's a really strong candidate to pull out and basically sell across the whol…”