Posts Tagged ‘SaaS’

Last week I shared the results from Part 1 of our survey  in which 300+ SaaS companies shared data on their growth and go-to-market strategies. This week we dive into the results from Part 2 of the survey where we compare application delivery methods, operational costs and gross margins, contract terms, churn rates,...

For the third year in a row, we worked together with Pacific Crest Securities, an investment banking firm with a specific focus on SaaS, to survey 306 SaaS companies. This represents nearly double the # of respondents from last year, giving us deeper benchmarking data and insights to share on the growth and operations...

Intro This page is a supplement to the the SaaS Metrics 2.0 blog post. It provides detailed definitions for each of the key metrics used in that post. Calculating LTV and CAC for a SaaS startup Unit Economics is a very powerful way to analyze the long term profitability of a SaaS business. I am often asked for the...

Traducido por Alberto Peralta. Introducción Esta página complementa el artículo Métricas SaaS 2.0 – Guía para medir y mejorar lo que importa. Proporciona la definición detalladas para cada una de las métricas principales que se que se usan en ese artículo. Calculando el LTV y el CAC para una startup SaaS. Las finanzas...

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 how...

“If you cannot measure it, you cannot improve it” – Lord Kelvin This article is a comprehensive and detailed look at the key metrics that are needed to understand and optimize a SaaS business. It is a completely updated rewrite of an older post.  For this version, I have co-opted two real experts in the field: Ron...

This page is a supplement to the SaaS Metrics 2.0 blog post that provides a comprehensive study of the key metrics to understand and optimize a SaaS business. It is designed to be read in conjunction with that post.   More detailed information on the definition of these different metrics can be found here.

The Bridge Group have recently published a report titled: Inside Sales for SaaS Metrics and Compensation Report for B2B technology companies   The report is based on a survey of 197 B2B technology companies, and covers topics such as: Ramp and Retention Compensation and Quota Activity and Infrastructure Inside Sales...

Summary: Illustrates graphically why churn is a huge problem as a SaaS company gets larger. It also looks at a very surprising factor that can massively accelerate SaaS growth: negative churn. (This article  is applicable to any recurring revenue business, not just SaaS.) Introduction As a SaaS company becomes larger,...

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 from your...

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 your trial conversion...

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...

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.