How to Tackle Your Retention Problem | SaaS Metrics School | Retention

Welcome to another edition of SaaS Metrics School with Ben Murray! In this video, we dive deep into tackling retention problems in your SaaS business. Understanding retention is crucial for the success of any SaaS company, and today, we're going to discuss the must-have metrics and strategies to identify and address retention issues effectively.

Key Topics Covered:

1. Must-Have Retention Metrics:

Customer/User Retention: Focus on retaining customers on an account basis rather than just a monetary basis. This gives a clearer picture of how well your SaaS product is engaging and satisfying users.

Gross Revenue Retention (GRR): Measures the revenue retained after accounting for contraction and churn. This metric maxes out at 100% and gives insight into your revenue stability.

Net Revenue Retention (NRR): Takes churn and contraction into account but also includes expansion revenue. The goal is to have an NRR above 100%, indicating healthy growth through upsells and cross-sells.

2. Importance of Benchmarks:
Understanding industry benchmarks is essential. We reference the latest benchmarks released by Ray Reich, founder of Benchmarkit.ai. Knowing where your SaaS business stands relative to these benchmarks can guide your retention strategies.

3. Segmenting Retention Data:
Segmenting your retention data is key to pinpointing where issues may lie. Whether by product line, Ideal Customer Profiles (ICPs), geographical locations, or pricing plans, slicing and dicing your data helps identify patterns and segments with high or low retention rates.

4. Cohort vs. Aggregate Retention:

Aggregate Retention: Examines the total customer base and provides an overall retention rate.

Cohort Analysis: Useful for businesses with higher customer acquisition volumes. It tracks retention over time for specific customer cohorts to determine if retention rates are improving with newer customers.

5. Practical Application:
We discuss real-world examples of segmenting customer data, highlighting how different segments perform in terms of retention. This segmentation allows product and customer success teams to focus on areas that need improvement.

6. Coaching and Course Offerings:
Learn more about retention metrics and benchmarks in our SaaS Metrics Foundation course. Join our next live cohort starting February. Links and more details are available in the show notes.

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Why Watch This Video?

Gain a comprehensive understanding of the key retention metrics for SaaS businesses.

Learn how to segment your retention data effectively to uncover actionable insights.

Understand the importance of cohort analysis in tracking and improving retention.

Access industry benchmarks to evaluate your SaaS business's performance.

Get insights from real-world examples and practical applications.

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