[Now Closed] Ask Isabelle Anything: HubSpot's SaaS unit economics expert

maggiebutler
HubSpot Moderator

This AMA is now closed. However, the resources live on! See below for the presentation and check out the Q&A in the thread for more.

 

Resources: Click here for the live webinar recording and click here for the separate slide deck.

 

Big news: Our in-house expert on SaaS economics is taking our for-employees-only training on the unit economics of our business public for the first time ever! During the event, Isabelle Bensimon will explain the unit economics of a SaaS business model and how these fundamental metrics feed into setting HubSpot’s annual plan.

 

Resources: Click here for the live webinar recording and click here for the separate slide deck.

 

During September, you can upvote questions you want answered below or leave your own. Here are some topics you can ask Isabelle about:

 

  • SaaS business models
  • LTV
  • CAC
  • NNMRR
  • PPR
  • Churn
  • C$R
  • RR
  • Install base metrics
  • Annual Planning
42 Replies 42
ibensimon
HubSpot Employee

@msibnseddik wrote:

For a startup that has a yearly subscription, what proxy to use instead of waiting years?


@msibnseddik Sounds like you're asking how to calculate churn rates (for use in the LTV calculation or on it's own), when you're a new business and your customers are on longer contracts. It's a very good idea to install listening devices early on to measure customer happiness and engagement with your product. For instance, are you tracking overall usage of your product or usage of important features of your product? If customers or users are no longer active in your product, this is a strong indication that they will not renew (and will churn). It's also important to start tracking NPS, CSAT, or another regular measure of satisfaction with your product. A low satisfaction score may indicate a high likelihood of churn. Of course, you won't know for certain until the customer comes up for renewal, but if you start collecting these data points early, you'll be able to correlate them with the ultimate churn outcome. At the end of the year, not only will you have a more definitive churn rate, but you'll have great leading indicators/predictors of churn. For example, maybe you'll find that a customer who responded to the NPS question with 4 is 60% likely to churn; or, a customer who is regularly using XYZ feature is 80% likely to renew. You can use these leading indicators to set up alerts and prevent churn.

0 Upvotes
EverettBrady
Participant

Are there recommended tools or methodologies for gathering these metrics?

0 Upvotes
Jennymartin
Participant
Hi I watched this presentation yesterday, it was excellent, thank you! I was wondering when we will receive a recording of it?
Bern
Participant

That would be really great. Thanks for the presentation yesterday!

ibensimon
HubSpot Employee

@Bern wrote:

That would be really great. Thanks for the presentation yesterday!


@Bern Thanks! Recording will be coming your way early this week.

0 Upvotes
Bern
Participant

Thanks again for the great presentation. I valued the simplicity, analytical clarity and focus, which was didactically valuable. Especially for a startup founder the blink into a mature management accounting is worthwhile. Looking forward to reviewing the recording. 

0 Upvotes
maggiebutler
HubSpot Moderator

@Bern wrote:

Thanks again for the great presentation. I valued the simplicity, analytical clarity and focus, which was didactically valuable. Especially for a startup founder the blink into a mature management accounting is worthwhile. Looking forward to reviewing the recording. 


@Bern Thanks so much for your feedback! Are there other topics you'd like to hear about, are there any business challenges you are currently experiencing that would be helpful to deep-dive into? I'd love your feedback, if you have ideas to share - let me know here, or you can private message me. Have a great week!

0 Upvotes
ibensimon
HubSpot Employee

@Jennymartin wrote:
Hi I watched this presentation yesterday, it was excellent, thank you! I was wondering when we will receive a recording of it?

@Jennymartin Just running it through Legal one more time, since it's our first time doing this. Coming your way tomorrow, likely!

0 Upvotes
maggiebutler
HubSpot Moderator

@Jennymartin wrote:
Hi I watched this presentation yesterday, it was excellent, thank you! I was wondering when we will receive a recording of it?

@Jennymartin Hi Jenny, let me know if you didn't recieve it - I will make sure you get a copy.

0 Upvotes
Jennymartin
Participant
Hi there. I haven’t received my recording yet, do you have an eta on that?
Crystelrynne
Participant

Hi, will you be sending on the recording of the sept 17th? 

 

thanks

0 Upvotes
maggiebutler
HubSpot Moderator

@Crystelrynne wrote:

Hi, will you be sending on the recording of the sept 17th? 

 

thanks


@Crystelrynne Hi, wanted to drop by and make sure you recieved the email this week - let me know if you didn't! I'll make sure you get it. 

0 Upvotes
EverettBrady
Participant

Hello Maggie,

I also have not received the recording.  Thank you.

0 Upvotes