Software Platform Consulting

SaaS Metrics for Enterprise-Driven B2B Networks (Buyer-Supplier Revenue Mix)

Software Platform Consulting

There are many great articles about SaaS metrics on the web (e.g., see here , here and here.) There are also great resources for metrics specific to marketplaces (see here ). But much of my work is with a special kind of network, where one side of the platform is an enterprise buyer (or supplier) and on the other side is their supply base (or customers). Typically one side’s enterprises tend to be much larger than the other side’s. That’s why I call them enterprise-driven.

Change Healthcare’s Intelligent Healthcare Network

Software Platform Consulting

Change Healthcare is going public (again). The IPO provides another opportunity to examine a massive B2B inter-enterprise network, Change Healthcare’s Intelligent Healthcare Network. I previously wrote about this network when it was called Emdeon ( see here ). It’s a story of how a small EDI player became an impressive company through acquisition and organic growth. Every network entrepreneur should know this great story.

Insiders

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SaaS Metrics for Enterprise-Driven B2B Networks (Bookings)

Software Platform Consulting

Source: [link]. This is the third in my series on SaaS Metrics for Enterprise-Driven B2B Networks. I spend very little time on issues of compensation on this blog. But it turns out, this is a really important issue for Enterprise-Driven B2B Networks. As discussed in the prior post , many networks of this type, subsidize one side of the network, to make money from the other side.

How well do Governments Buy Catalog Items?

Software Platform Consulting

As taxpayers, we should want to know how well our dollars are spent. At the Federal level, most of these dollars are spent on social security, healthcare, and defense (see below). Articles about spending in these areas are easy to find, but the price of F-35s or my dad’s medicare is too complex for this blog. Instead, let’s focus on the prices paid for common commercial catalog items that we can all relate to. Government Catalog Spend.

Insiders' Guide to Self-Service Analytics

Self-service analytics are vital for how your users interact and engage with your application. As you explore analytics solutions for your application, see why self-service analytics can prove critical to the adoption and stickiness of your application.

Fleetcor Acquisition of Nvoicepay Yields Insights on B2B Payments

Software Platform Consulting

Fleetcor (FLT) closed on its acquisition of privately-held nvoicepay on April 1, 2019. Fleetcor’s first quarterly earnings report since the acquisition provides insight into the economics of the B2B payments space. Nvoicepay. Nvoicepay is interesting, in part, because it is a pure-play payments provider. The company takes a payment file from a buyer. It then disburses the funds to the buyer’s suppliers in a manner nvoicepay has determined in negotiation with the supplier.

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Gartner 2019 Magic Quadrant for Procure-to-Pay Suites (with Valuations)

Software Platform Consulting

Gartner recently published its 2019 Magic Quadrant for Procure-to-Pay Suites. Once again , I have superimposed valuation information onto the Magic Quadrant. (I I still don’t understand why Gartner has not varied the size of the “dots” to add more information to the charts. For instance, each vendor’s dot could be sized in proportion to their NPS scores, revenue, or valuation. See Spend Matters’ Solution Maps.).

The Phreesia Triple Threat

Software Platform Consulting

My last post was partly about healthcare payments in the form of Change Healthcare’s Intelligent Healthcare Network. I did not set out to write another post about healthcare payments, but reading Phreesia’s S-1 compels me to. Phreesia has three “businesses” in one: SaaS applications, payments, and life sciences advertising. Phreesia Threat #1: SaaS Applications. If you have been to a doctor you have some idea of what Phreesia’s SaaS applications do!

SaaS Metrics for Enterprise-Driven B2B Networks (Buyers per Supplier)

Software Platform Consulting

Welcome to the last, and most important, in my series of posts on metrics unique to Enterprise-Driven B2B Networks. The last metric, buyers per supplier, is easy to calculate if your platform is architected as a network. (If If you did not architect your platform so suppliers have one account for all buyers, shame on you.). Suppliers Per Buyer. Every enterprise-driven B2B network proudly tells you they are great at enabling your enterprise’s suppliers.

Upwork Versus Fiverr: Battle of the Freelance Marketplaces?

Software Platform Consulting

Fiverr, a marketplace for freelancers just joined the parade of software companies going public. The Fiverr filing sets up a comparison of Fiverr versus Upwork, the grand-daddy of freelancer marketplaces. Upwork went public last year.) (See See here and here ). Upwork Versus Fiverr: A Different Approach to Services. The most basic difference between Upwork versus Fiverr is fascinating. On the Upwork platform, buyers issue RFQs for projects and invite freelancers to bid on those projects.

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9 Steps to Hosting Your Most Successful Virtual Event

The step-by-step Virtual Event Handbook from Thryv gives you all the tools you need for planning, setting goals, marketing, pricing and – don’t forget this one – event etiquette. Plus, the handy checklist will help you pull it all off without a hitch.

B2B Payments Economics Courtesy of Bottomline Technologies (Paymode-X)

Software Platform Consulting

Last week I wrote a post about Fleetcor’s acquisition of Nvoicepay. The acquisition represented an opportunity to learn more about the economics of B2B payments. The acquisition also prompted me to review Bottomline’s financial reports. Bottomline owns Paymode-X, the largest B2B payment network in the US. Paymode-X boasts payments of more than $200 billion annually and over 400,000 payees. Nvoicepay, by contrast, processed payments of approximately $20 billion annually.).

Two-Sided Markets and a Two-Sided Supreme Court: The Amex Case

Software Platform Consulting

Yesterday, the Supreme Court of the United States ruled in favor of American Express (Amex) in an antitrust case 11 states had brought against Amex (see here ). If you are interested in two-sided markets, platforms, and pricing you will want to read the Supreme Court’s decision written by Justice Thomas and the dissent written by Justice Breyer (see here ). Full disclosure: There’s a fair bit of legalese, so I skimmed it. But, it sounds cool to say I read a Supreme Court opinion.)

When Business Models Collide: HomeAdvisor and Angie’s List

Software Platform Consulting

Established in 1995, Angie’s List was the pioneer in the home services marketplace. Home Advisor (IAC) announced last week it is acquiring Angie’s List (ANGI) for more than $500 million. This price represents a 44% premium over Angie’s List’s depleted closing stock price (see below)). I am sad to see Angie’s List go. Triumph of the One-Sided Pricing Plan. Angie’s business model was a prominent differentiator from its competition in the home services market.

As Software Platforms Grow, So Do the Oligopolies

Software Platform Consulting

I love the word “oligoply” It’s a fancy word for a market structure in which a few companies have the large majority of market share. The recent news reminds me just how many markets are becoming oligopolistic–especially those dominated by platform software. Before We Get to Software… Warren Buffett recently announced that he was buying airline stocks. This is a man whose greatest quotes include many disparaging remarks about the airline industry (see here ).

3 Templates for Uncomplicating Your Product Management Process

In this workbook, you’ll find a comprehensive set of templates product development and cross-functional teams can adopt to better leverage your existing skills and your data.

Taulia Discloses A Few SaaS Metrics Relevant to Networks

Software Platform Consulting

Early (and Fuzzy) Saas Metrics From B2B Networks. Until a B2B Network catches on, the metrics can be gloomy. (The The first few years of the Ariba Network were pretty dismal, for instance.) The result is that for the first few years of a B2B network’s life you tend to see silly press releases from these networks touting their growth in all manner of odd metrics: percentage growth versus growth in absolute numbers (always huge when you start from zero). new partnerships. awards.

Uber for Truckers: Cargomatic and the Perils of B2B SaaS Marketplaces

Software Platform Consulting

Sunday’s Business Insider had a great article on, Cargomatic, a company promising (as do many others) to be the “Uber for Truckers” By that, Cargomatic means it will match shippers with goods to ship with truckers with excess capacity. On paper it is a great idea in a huge market: less than truckload (LTL) shipping.

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Ferreting out Suppliers’ “Dirty Little Secrets”

Software Platform Consulting

Three separate events last week reminded me that every spend category has its “dirty little secrets” Suppliers can exploit these “dirty little secrets” to squeeze a little more from buyers than buyers bargained for. Not all of these secrets are nefarious, but all reflect the inherently deeper category knowledge suppliers have and the limited resources buyers have to “sweat the details” in every category.

Angie’s List and Two-Sided Market Pricing

Software Platform Consulting

For those of us who follow pricing strategy in two-sided markets, last week was a milestone. Angie’s List, which invented the home services marketplace (in 1995) announced it would drop its “paywall” The paywall charged buyers to search its directory and reviews before communicating with contractors. Angie’s List will now offer a freemium model for homeowners (buyers) and will continue to offer a freemium model to contractors/service providers.

Realizing the Benefits of Automated Machine Learning

How are organizations using machine learning and artificial intelligence (AI) to derive business value? Renowned author and professor Tom Davenport explains the rise of automated machine learning, its benefits, and success stories from businesses that are already using it.

Take Rates for B2B Marketplaces

Software Platform Consulting

The two questions I’m most often asked are: 1. How do you keep your hair looking so lush and luxurious? How much can a B2B Marketplace or Multi-Sided Platform charge for its services? Some folks call this the platform’s “take rate” ). The answer to the former question will need to remain a mystery, but the answer to the latter follows. B2B Marketplace Services.

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10 B2B Blogs Every Software Nerd Should Read

Software Platform Consulting

The vast majority of tech press is about B2C software companies or software for IT department (e.g., databases, security, performance monitoring and other stuff) that does not excite me. But, there are a few good b2b blogs and newsletters those of you interested in enterprise cloud business applications should follow for inspiration. My nominations, in no particular order, are as follows: Price intelligently.

B2B 40

The More Enterprise You Are, the More Visible the CEO Should Be

SaaStr

Yes for sure. I also think, as a case study, @jenntejada is a great example of CEO that adds value to the product itself like @levie. Being out there & inspiring people about your mission, I think makes customers on balance choose you. and keep you top of mind much more often.

Your Step-by-Step Guide to A/B Testing with Google Optimize

The Daily Egg

A/B testing can be as simple as reciting the alphabet.

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Digital Trends Report 2020

As part of our goal to continue helping our community during these times, we wanted to share with you this critical data on the state of digital products across industries and provide context on how businesses are responding to the changing winds.

A Few Thoughts On How To Think About Dilution

SaaStr

Over the past few weeks, I’ve been fortunate enough to catch up with several Unicorn++ founders who, relatively speaking, had not raised that much vs their peers. We talked about a lot of things from scaling, to IPOs, to the journey, and more.

HubSpot’s Growth Accelerates to 41% at $1.1B in ARR. And New Customers Grew Even Faster.

SaaStr

Hubspot didn't just grow an incredible 41% in Q1'21 to $1.1B in ARR. It accelerated. Revenue growth accelerated from 32% to 41% * And new customer growth accelerated to a crazy 45% YoY * All while keeping ACVs constant at ~10k. They did it the hard way, with SMBs.

SMB 276

How to Avoid Being Replaced as CEO by Your VCs

SaaStr

Worried about a bunch of VCs replacing you? You should be a little worried, probably. A ways back, a CEO that I know fairly well was fired by a VC. Strange thing was, the VC didn’t talk to the rest of the board. Who didn’t agree. So he got un-fired. Awkward.

5 Interesting Learnings from Monday.com at $240,000,000 ARR

SaaStr

So Monday.com has filed to IPO with some pretty incredible numbers, especially considering just how competitive the space is. At $240m in ARR, they are growing a stunning 85% year-over-year!

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Why Distributed Tracing is Essential for Performance and Reliability

Speaker: Daniel "spoons" Spoonhower, CTO and Co-Founder at Lightstep

Many engineering organizations have now adopted microservices or other loosely coupled architectures, often alongside DevOps practices. Together these have enabled individual service teams to become more independent and, as a result, have boosted developer velocity. However, this increased velocity often comes at the cost of overall application performance or reliability. Worse, teams often don’t understand what’s affecting performance or reliability – or even who to ask to learn more. Distributed tracing was developed at organizations like Google and Twitter to address these problems and has also come a long way in the decade since then. By the end of this presentation, you’ll understand why distributed tracing is necessary and how it can bring performance and reliability back under control.

CLTV Isn’t The Whole Story. Don’t Shortchange Second-Order Revenue.

SaaStr

Everyone in SaaS talks about CLTV (or LTV, same thing). The lifetime value of your customer. You can see a great detailed analysis of how to calculate it here. And then, everyone goes on to calculate some a metric telling you how much to spend on Sales and Marketing.

The Top SaaS Companies Have An Average of ~350 Integrations

SaaStr

Your API. If you are a B2D company, it’s your product itself, your API. But for most B2B companies, your API, your partner programs, and the like are extensions. Not your core product, but an important layer for improving customer experience.

SaaS 282

Is it Really ARR? In 2021+, Yes. As Long As NRR is > 100%

SaaStr

A lot of our SaaS older times don’t quite know what to make with a lot of B2B startups these days, let alone some public SaaS companies. So many startups these days are claiming they have “ARR” from revenue that … doesn’t recur.

The #1 Way to Accelerate Your Career Growth

SaaStr

Everyone of us that are hyper-driven wants to grow our careers faster. We’re impatient. We want to learn, grow, manage more, earlier. Let me share my best hack. My uber-learning: Find the best boss you can; and. Take on every initiative, project, task and endeavor you possibly can for them.

The Connected Journey: Developing your Empathy to Strengthen Strategies for Customer Relations

Speaker: Esther Kieft, Delivery Manager (Group Technology) at Domino's Pizza Enterprises

It is well known that empathy is a key ingredient in creating lovable products, yet not all products offer the best customer experience. From meeting stringent deadlines to insufficient resources being available to carry out customer research, there is a range of reasons why customer empathy could be missing in product development. Join Esther Kieft, as she breaks down using empathy at a distance to evaluate the problems that customers are experiencing during this global health crisis.

How to Get Ahead in SaaS Sales in 7 Easy Steps

SaaStr

For someone just starting out in SaaS sales (entry-level Salesforce in November), what are your tips to accelerate growth/ability in early stages? A few thoughts to excel as someone new to SaaS sales: Really learn the product cold. As fundamentally as you can.

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4 Tips To Earn Respect as a Young SaaS CEO

SaaStr

While age ultimately doesn’t matter — results do — in SaaS, starting off as younger-than-average can create stress in a sales- and customer-driven environment. But Aaron Levie started Box at 19, Mark Zuckerberg and Bill Gates dropped out at 19-ish, you know all this.

SaaS 247

CRM Strategy – The Complete Guide

The Daily Egg

There are many businesses that implement CRM solutions with the belief that they will magically solve all of their problems. But adoption does not necessarily guarantee success. It’s not even just about investing in the right software; your CRM efforts could still fail for a number of reasons.

Yes, You Need to Fundraise 52 Weeks a Year. The 1-and-30 Rule.

SaaStr

“I don’t want to meet [That VC]. I don’t need money now and it’s distracting.” ” — most founders, post Seed round. …… There’s a superpower some founders have.

The Best Sales Forecasting Models for Weathering Your Goals

Every sales forecasting model has a different strength and predictability method. It’s recommended to test out which one is best for your team. This way, you’ll be able to further enhance – and optimize – your newly-developed pipeline. Your future sales forecast? Sunny skies (and success) are just ahead!