SaaS Knowledge 5

Question 1

What is 'net revenue retention' (NRR) and why do investors prioritize it?

Accepted Answer

Revenue retained from existing customers including expansions and minus churn; shows organic growth potential

Answer

NRR above 100% means existing customers generate more revenue over time, allowing a SaaS company to grow even without acquiring new customers.

Question 2

Which compliance framework is most commonly required for SaaS companies handling US healthcare data?

Accepted Answer

HIPAA

Answer

HIPAA (Health Insurance Portability and Accountability Act) governs the handling of protected health information (PHI) and applies to SaaS platforms used in healthcare.

Question 3

What is a 'champion' in enterprise SaaS sales terminology?

Accepted Answer

An internal advocate at the prospect company who drives adoption of your product

Answer

A champion is an internal stakeholder at the buyer's company who believes in your solution and actively promotes it internally to get approval and drive the deal.

Question 4

What does 'churn prediction' modeling help SaaS companies do?

Accepted Answer

Identify at-risk customers before they cancel so teams can intervene

Answer

Churn prediction models analyze usage signals, support tickets, and engagement data to flag customers likely to cancel, allowing proactive retention outreach.

Question 5

In SaaS, what is 'dunning' referring to?

Accepted Answer

Automated communications and retries to recover failed subscription payments

Answer

Dunning is the process of automatically retrying failed charges and sending escalating email reminders to recover involuntary churn from payment failures.

SaaS Practice Test

SaaS Practice Test

SaaS Knowledge 5