Greetings, Ben Murray here with another edition of SaaS Metrics School! In today's video, we are diving into the latest trends in net dollar retention (NDR) for public SaaS companies. We'll be examining data from the Meritech Software Pulse newsletter, which provides frequent updates on public software company metrics.
Key Discussion Points:
Public Company Trends:
- Median Net Dollar Retention Trends:
- Q2 2023: 114%
- Q1 2023: 115%
- Q4 2022: 116%
- Previous five quarters: ~119%
- Analysis of the decline in net dollar retention over the last three quarters.
- Importance of measuring net dollar retention in the SaaS industry.
Private SaaS Company Benchmarks:
- Targeting Mid-Market and Enterprise Customers:
- Best-in-class companies operate at 120%+ net dollar retention.
- Smaller Price Point Businesses:
- Aim for 110%+ net dollar retention.
- B2C SaaS Companies:
- Target around 100% net dollar retention.
- Challenges of achieving higher NDR in B2C.
Recommendations:
- Partner with Benchmarkit.ai for custom SaaS metrics benchmarks.
- Ensure proper calculation of net dollar retention and have the right MRR schedule in place.
Understanding net dollar retention is crucial for the success of your SaaS business. Join me as we explore these metrics and discuss how they can impact your business strategy.
📊 Meritech Software Pulse Newsletter: Stay updated with public software company metrics.
🌟 Ray Rikeat Benchmark.ai: Get your custom benchmark set for SaaS metrics.
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