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2 stories tagged #nrr.

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SaaS

SaaStr: Stop Pushing Multi-Year Contracts in Age of AI

SaaStr states that shorter contracts are now the norm across B2B and AI. According to SaaStr, three-year contracts dropped from 28% of new logos in 2023 to 23% in 2026. Sub-one-year contracts jumped from 4% to 13% in the same period. The publication frames this shift as rational buyer behavior rather than a negotiating tactic.

AI replacement cycles compress every 18 months. A three-year contract signed today might lock buyers into a category that is obsolete by year two.

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RevOps

Legacy Vendors Face NRR Pressure on Renewal Discounts

A customer who had used Adobe Marketo for nearly two decades and served as a reference account decided to churn after the vendor raised pricing at renewal with no new features and a more limited API.

The customer cited broken unsubscribe handling, daily API rate limits, a six-month history cap, and general hostility to agents as reasons for leaving. Three foundation models all indicated they would not send email through Marketo because they could write a better one themselves.

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