RESOURCES - ARTICLES

Measuring churn rates is crucial for SaaS companies as it helps them understand how many customers they are losing over a given period and why. RevTEk Capital explains measuring Churn Rates in SaaS and how to calculate your Churn Rate, Types of Churn and how to Churn Rate in SaaS affects your business. Measuring churn rates is an ongoing process and should be regularly monitored to ensure that SaaS companies are continually improving and retaining their customers.

Until the recent past, business and marketing models have been built around companies trying to sell a physical product. They want you to buy the newest car, the best watch, or even that tendy, eco-friendly, hand printed tee.

These all have one thing in common: they are items.

In the world of items, a one-time purchase is all you need to close a sale and call it a success. Sure, repeat customers are important, but they are not necessarily the backbone of your business operation– especially as the price per item rises.

In SaaS, the game changes.

Recurring revenue is a key metric for SaaS companies because it provides a predictable and stable source of income. It allows companies to plan for the future and invest in growth initiatives, knowing that they have a steady stream of revenue coming in.

Most startup owners depend on investors for funding in their new business. As mentioned in this article, there are many types of investors who have their own resources, capabilities, and motivations. You might prefer one type of investor over another depending on the strategy, capital needs and the company’s size. In addition to this, the company preferences would change over time, and the progress of the company would change as well.