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Not even sure how to count churn. Then we’re going to put it into a rate where were not sure what to divide it by and then we’re going to invest $50M based on that. Building blocks – learn this stuff from the bottom up. Retention rates, cohort-based – correct/forward vs. survivor-biased/backward
Story of changed payment terms (bi-annual) in a down economy – billings drops, looks like renewals crash. Reality is different.
Renewals processed by legal are worst case – you probably won’t sue your customers and they’re not getting the love/tracking from customer success
Adoption/renewal – parallel systems, 100% adoption up until they turn it off. On accidental renewals, tough question – obviously prefer to see as second chance to save. In the end, the world is small and for apps at least you may well see the person again Begs tough question: do you “be nice” and offer sub-1-year renewal?
During World War II, the statistician Abraham Wald took survivorship bias into his calculations when considering how to minimize bomber losses to enemy fire. Researchers from the Center for Naval Analyses had conducted a study of the damage done to aircraft that had returned from missions, and had recommended that armor be added to the areas that showed the most damage. Wald noted that the study only considered the aircraft that had survived their missions—the bombers that had been shot down were not present for the damage assessment. The holes in the returning aircraft, then, represented areas where a bomber could take damage and still return home safely. Wald proposed that the Navy instead reinforce the areas where the returning aircraft were unscathed, since those were the areas that, if hit, would cause the plane to be lost.[not in citation given] His work is considered seminal in the then-fledgling discipline of operational research.
Key is what is the CSM role and how do you hire for it? Increasing people are hiring account managers (farmers with shotguns) … not “your best friend” CSM. then CSM role becomes more escalation manager.
SaaStr18 Dave Kellogg Ten Non-Obvious About Scaling SaaS