The health of a SaaS business is directly tied to its ability to retain its customers and prevent churn. To do this, they have to ensure that their customers are happy. That means making sure they get the promised business benefits they signed up for. This blog post discusses how to measure customer happiness, and […]
We worked together with Pacific Crest, an investment banking firm with a specific focus on SaaS, to survey 155 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. The goal of the survey is to provide useful operational and financial benchmarking data.
Pacific Crest, an investment banking firm with a strong focus on SaaS, has surveyed a 70 SaaS companies with very interesting results. There is some great data on topics such as growth rates, cost of customer acquisition, churn/retention, expense models, capital efficiency, etc. The full survey, which was put together by David Spitz and his team […]
In this article I interview Aaron Ross, co-author of a new book, Predictable Revenue. Aaron discusses his experience at Salesforce.com starting a new group that used an innovative outbound prospecting approach (involving no cold calls) to create new leads. Aaron’s group came up with several important breakthroughs which enabled them add over $100m in incremental […]
Best practices for inside sales managers. An interview with Mark Roberge, VP of Sales at HubSpot, discussing how he blends science and process with the art of selling. HubSpot is a SaaS company selling Inbound Marketing software. HubSpot has grown revenue over 6,000% in the last four years, placing them #33 on the Inc 500 […]
Customers hate being sold to. They don’t mind getting expert help when they want to buy something. But much of the time they are not ready to buy, and one of the most irritating things is to have a salesperson try to get them to buy when they aren’t ready. Unfortunately too many people in […]
Scalable pricing is a powerful tool to grow revenue in a SaaS or software business. It allows you to capture more of the revenue that your customers are willing to pay, without putting off smaller customers that are not able to pay high prices. It also provides a great way to continue to grow revenue […]
The goal of a SaaS CEO should be to increase the profit they make from each customer (LTV), and lower the costs in sales and marketing that it takes to acquire each customer (CAC). Measuring Customer Engagement is a key tool that will help you achieve that goal, as it will allow you to increase […]
How to make sure your sales forecast has been properly validated so it will stand up to test of time (and investor scrutiny). This blog post looks at the process that I would use as a board member or investor to validate a bookings forecast, checking to see if the key elements that are needed to support that forecast have been thought through properly.
An interview with Lesley Young, who was the VP of worldwide Sales for MySQL, and then head of sales for the MySQL division within Oracle. Few products are as well known as the ubiquitous MySQL database. The company behind the database was also one of the great success stories in the Open Source world, and […]
I presented the following set of slides to the Mass TLC group as the keynote for the “SaaS Business Model Update — Creating and Managing Revenues” event. The slides should be useful for anyone interested in learning about the key drivers for a SaaS business, including the SaaS cash flow trough, cost of customer acquisition, […]
Discusses the cash flow trough that happens to SaaS, or other subscription/recurring revenue businesses when they decide to scale their business by ramping sales and marketing. Provides an Excel spreadsheet model and PowerPoint slide deck that can be used by readers to model their own data.
Provides SaaS entrepreneurs with an Excel spreadsheet model and graphs that show the cash flow trough that happens to SaaS or subscription businesses that use a sales organization
This post looks at how sales complexity impacts the cost of customer acquisition (CAC) in B2B software and hardware companies. It also introduces a zone system for evaluating different startup sales models.
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