2011: More of the same. only worse

Practical Advice on SaaS marketing

What's new for 2011? Bottom line, don't expect a huge marketing budget windfall in 2011. For you existing SaaS vendors, prepare yourselves: sharpen your value messages, hone the customer acquisition process, and engage your existing customers. customer acquisition IT concerns marketing spending SaaS marketingNot much, really. If you were looking for my "top ten" list of dramatically new trends for the new year, sorry to disappoint you.

What we look for in early-stage SaaS startups

The Angel VC

To put it as simple as possible, the health of a SaaS business is mainly determined by two factors: Customer lifetime value (CLTV) and customer acquisition costs (CAC). I recently wrote that investors (myself included) should do a better job of making their investment criteria transparent to founders. Today I'd like to tell you a bit more about what we at Point Nine Capital are looking for in SaaS startups (other sectors are something for another blog post).

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Where to start with SaaS marketing

Practical Advice on SaaS marketing

Any of these tactics might work in your customer acquisition plan, so they may be the place you end up. customer acquisition lead generation SaaS marketing value propositionSo you say you want to launch a software-as-a-service (SaaS) solution. And you need to find some customers. So where do you start? If you're like a lot of folks, your first thought will be about a web site, search engine optimization, and adwords. Or maybe a webinar series or a social media campaign.

What do you mean by "marketing?"

Practical Advice on SaaS marketing

Marketing supports the entire customer acquisition process: generating awareness building interest attracting leads nurturing leads into qualified opportunities converting opportunities into paying customers. SaaS firms in particular can't afford to pay for ineffective customer acquisition. If the role of marketing is too narrowly defined and doesn't span the entire customer acquisition and retention process, it will be difficult for a SaaS business to succeed.

SaaS Marketing Lessons from ShamWow!

Practical Advice on SaaS marketing

customer acquisition lead generation SaaS marketing value propositionI've never bought a ShamWow! , but I love their TV ads. The hyper-enthusiastic pitchman, Vince, tells me precisely who should buy the product, what it does, why I desperately need it, and how to buy it. all in 60 seconds! And what's true for super-absorbent towels is often true for software-as-a-service (SaaS) solutions.

Old marketing tools in a new marketing world

Practical Advice on SaaS marketing

Though events can be expensive - exhibit space, booth set-up, shipping & drayage, plus travel expenses - they can be effective if you clearly understand where events fit in the overall customer acquisition process. customer acquisition lead generation marketing spending SaaS marketingI was talking yesterday with a friend who I know from the old days doing public relations.

SaaS advantages in a volatile market

Practical Advice on SaaS marketing

customer acquisition explaining SaaS SaaS marketing value propositionFor the last few years, NASCAR, Indy car, and Formula One drivers have been wearing a special head restraint, known as a HANS (Head and neck support) device. It's designed to prevent severe injuries from violent whiplash when the race car suddenly decelerates, as in a crash.

Feeding the content monster

Practical Advice on SaaS marketing

customer acquisition lead generationMarketers beware! There's a ravenous beast on the loose in marketing land, and it's hounding us mercilessly - days, nights, weekends & holidays - with an insatiable craving. Feed me. Feed me. Feed me." This beast inhales tasty blog posts for breakfast, devours hearty white papers for lunch, and feasts on entire websites for dinner. And in between meals, it snacks on a bottomless bag of tweets. The name of this voracious beast - the Content Monster.

SaaS 100

Good news & bad news about SaaS

Practical Advice on SaaS marketing

As long as the subscription fees cover customer acquisition expenses and other costs, the model should support a profitable, growing business. customer acquisition customer support renewals SaaS marketingThe good news about the SaaS subscription model: long-term paying customers. The bad news about the SaaS subscription model: long-term paying customers. With the software-as-a-service (SaaS) business model, vendors can build a sustainable source of long-term, predictable revenue.

SaaS marketing, baseball and the batting order

Practical Advice on SaaS marketing

It's about the customer acquisition and retention process. There's a tendency to focus too narrowly on individual pieces of the customer acquisition funnel or even more tightly on particular tactics: Does this individual keyword draw more traffic? customer acquisition lead generation SaaS marketingI recently read " Three Nights in August, " a wonderful book about the "game inside the game" of baseball. The author, Buzz Bissinger, shadowed St.

Marketing numbers can lie

Practical Advice on SaaS marketing

customer acquisition lead generation marketing spending SaaS marketingI barely passed an accounting course in college. The only thing I remember was a joke about "debits by the window and credits by the door." I didn't understand the joke then, and I'm still confused by T accounts now. Thankfully, in a stint as a bank credit analyst, I did finally gain some fluency with business numbers.

How not to calculate a SaaS marketing budget

Practical Advice on SaaS marketing

A few bad outcomes are possible: Under-funding: A business fixated on measuring marketing as a percentage of annual revenue is likely to under-fund marketing and choke off the fuel for customer acquisition. Over-pricing: To bump up annual revenues to better cover customer acquisition expenses, the company may over-price their solution relative to the value perceived by the customer. customer acquisition marketing spending

Social media is a good fit for SaaS

Practical Advice on SaaS marketing

All of this holds down your customer acquisition costs and accelerates your sales cycle. customer acquisition customer experience renewals SaaS marketingNPR's Fresh Air host, Terry Gross, recently interviewed Biz Stone, the co-founder of Twitter. She asked him, once the founders created Twitter, how did it catch on. Stone's candid answer, "Well, it didn't at first."

Please don't sell me stuff I don't need

Practical Advice on SaaS marketing

customer acquisition lead generation SaaS marketingMy regular readers can skip the next two paragraphs. I need a minute to talk to my brethren in the PR community. privately. To the PR folks who have been pitching me on stories about computer viruses, streaming music to cars, online advertising solutions, and 3D mice, please stop. If you've read my blog or newsletter , you'd know that I do not write about these topics.

Saying "no"

The Angel VC

In their “6Cs of Cloud Finance” article they say, referring to the Customer Acquisition Costs Ratio of SaaS companies: “Anything above one means you should invest more money immediately and step on the gas (and please call Bessemer immediately because we want to fund you!) Being an angel investor is a fantastic job. Every day you meet great new people, cool products, exciting technologies and interesting new business models.

SaaS makes a mess of the org chart

Practical Advice on SaaS marketing

But the SaaS model requires an ultra-efficient customer acquisition process, and there's a penalty to pay for that kind of friction. Given the high cost of customer acquisition , SaaS companies usually can't afford to win customers more than once. SaaS messes up organization charts. It takes those boxes that represent separate departments and it smushes them together. Let me give some examples.

Customer Acquisition Spending: Lessons from Workday

Practical Advice on SaaS marketing

Specifically, it illustrates the need for software-as-a-service (SaaS) companies to spend money - lots of it - on customer acquisition. times more on customer acquisition than annual revenues, and in 2007 it spent nearly 18 times more than annual revenues. Though the cost of customer acquisition relative to annual revenues has declined steadily, on-going customer acquisition expenses will continue to keep Workday in the red for some time.

Disrupting the Desk Phone: How and Why We Made a $50M Acquisition with Dialpad (Video + Transcript)

SaaStr

Thanks so much everyone for joining us for our fireside chat today, disrupting the desk phone: how and why we made a $50 million acquisition. But even just this past week, I learned so much more of the inside scoop of this acquisition, and that’s why we’re really excited to share more today, both about why some acquisitions … A lot of them you don’t hear ever of how they turn out. And when I was at Google, we did a couple acquisitions.

Power Laws: A Look Back To Where 20 SaaS Break-Out Companies from 2012 Are Today

SaaStr

Let’s take a look back at where HubSpot, Upwork, and others were in 2011 GAAP revenue — and where they are today. Learnings for this year, for 2011 GAAP revenue (Inc. in 2011 GAAP revenue. in 2011 GAAP revenue. in 2011 GAAP revenue.

The Salesforce/Mulesoft Acquisition is a Bellwether for the 2018 M&A Market

Tomasz Tunguz

Year of Acquisition. If we compare this acquisition on other dimensions, we see that Mulesoft is the second fastest growing at the time of acquisition, next to SuccessFactors in 2011. In the first three months of 2018, we’ve witnessed two multibillion dollar software acquisitions. The data suggests that these acquisitions will be completed at some of the highest multiples of the last decade, especially for the fastest growing companies

The Concur Acquisition in Context: A SaaS MegaExit

Tomasz Tunguz

Yesterday, SAP announced it would acquire Concur for $8.3B, the single largest SaaS acquisition in history in dollar terms. To put this acquisition in context, I looked at six other public-to-public acquisitions, where one publicly traded company acquired another. As the chart above shows, the Enterprise Value/Trailing 12 Month Revenue (EV/TTM Rev) multiple SAP paid for Concur is tied for the highest among any public-to-public SaaS acquisitions. Year of Acquisition.

We?re About To See a Lot More SaaS Debt

SaaStr

With the Salesforce IPO in 2004, we saw the first sign that institutional investors were comfortable with a standard set of SaaS metrics: Churn, sales efficiency , ARPU, LTV, customer acquisition cost , and so on. . Things started changing in 2011.

The top SaaS companies ruling the East Coast

SaaStock

Founded: 2011. Founded: 2011. By making sense of the data, businesses can increase their customer acquisition and retention. Founded: 2011. Founded: 2011. As we wrote in our launch post about expanding SaaStock New York into SaaStock East Coast , our main aim is to foster a community of top SaaS companies that spans all the way from Florida to Quebec.

SaaS 214

18 investors fueling Latin America’s SaaS superstars

SaaStock

Founded: 2011. To help out founders on the way, Astella Investimentos’ mentors provide guidance in the most crucial areas, such as customer acquisition, product development, and company training, as well as creating a roadmap for scalability and all stages of business development. Founded: 2011. As we showed you in the list of SaaS companies coming out of Latin America, the region has no shortage of SaaS superstars. How did this come about, though?

The Blockbuster Software M&A Market of 2018

Tomasz Tunguz

Billion-dollar plus acquisitions in 2018 have commanded a median 17.7x In fact, there is not a single acquisition in that range. That small decline is driven by Cisco’s acquisition of Broadsoft earlier in 2018, but does nothing to change the conclusion that acquirers prize growth. Consequently, I expect substantially more acquisitions of the scale and at these multiples through 2018. 2018 is a blockbuster year for software M&A multiples.

The SaaS superstars of the East Coast

SaaStock

Founded: 2011. Founded: 2011. By making sense of the data, businesses can increase their customer acquisition and retention. Founded: 2011. Founded: 2011. As we wrote in our launch post about expanding SaaStock New York into SaaStock East Coast , our main aim is to foster a SaaS community that spans from Florida to Quebec. The SaaS industry’s beating heart will probably always be New York, and it will also be the home of SaaStock East Coast on June 4-6.

The 3-Step Startup Marketing Framework We Created to Grow KISSmetrics

Hitenism

According to Google Trends, the term didn’t become a hot search item until 2011. (We CAC (customer acquisition cost) was low. It was 2008, and I was having a classic founder moment. I had no idea what I was doing. But at least I was doing! I was founding a SaaS business, KISSmetrics. Like any startup, we were flailing, failing, and on fire, all at the same time. It was a wild, insane, and ridiculously exhausting experience.

WP Engine passes $100M in revenue and secures $250M investment from Silver Lake

A Smart Bear

People said there’s no money in hosting. WordPress is just a toy. After the success of Smart Bear, I should be setting my sights on something big, not this. I’m sure people said similar things to Heather when she joined as our CEO. The Silicon Valley-oriented technology press outlets don’t cover us because we’re not in San Francisco, even though we’re more successful than most of the startups they cover.

Trends in the Startup Acquihire Market

Tomasz Tunguz

Year 2010 2011 2012 2013 2014. Or it could be caused by a delay in the announcement of these acquisitions. Q2 2010, Q2 2011 and Q2 2012 all saw similar drops before the levels rebounded. Instead of acquiring companies after the Series A, as they did in 2010 and 2011, these corp dev groups are pursuing talented companies after the seed.

What is a good SaaS Churn Rate?

SixteenVentures

Churn is the reason that – though you acquired a lot of new logos in 2012 – you had no significant year over year growth from 2011. Is 5% a good monthly SaaS Churn Rate?

Churn 103

The Sudden Shift in SaaS Product Pricing

Tomasz Tunguz

The typical SaaS company going public in the last three years has a 77% smaller average revenue per customer than companies in 2010 – 2011. In contrast, 2011 companies logged a median customer value of $96,000. Second, this trend demands the the sales process evolve from an education sale to an execution sale, from a push to a pull sales process , where customer support and success meaningfully reduce cost of customer acquisition.

Engineering Your Own “Luck”: The 3 Key Rules of Building Globally Distributed Teams with Eventbrite (Video + Transcript)

SaaStr

I’ve been with the company since 2011. A little more about me, as I’ve said, I’ve been with Eventbrite since 2011. I started right at the end of 2011, and I started in the role of VP of engineering. This was what Eventbrite was in 2011 when I started. This was the reality of the situation that I walked into in San Francisco in 2011, and we were still able to grow. First off, in 2013 we made our first acquisition.

SaaStr Podcasts for the Week with Domo and Gorgias — April 24, 2020

SaaStr

John joined Adobe through the company’s acquisition of Omniture in 2009, where he served as executive vice president of marketing, driving all marketing efforts to strategically advance the industry’s largest standalone web analytics business.

The First Generation of the Talent Software Wars

Tomasz Tunguz

Both companies eventually offered talent acquisition, performance management, and learning tools for human resources teams. in December 2011, and Oracle bought Taleo for $1.9B At the time of their acquisitions, SuccessFactors was growing more quickly than Taleo, likely contributing to the 2x premium the company commanded in the M&A market. In the late 1990s, two of the dominant talent management platforms were founded.

The best way to organize your marketing stack

Vero

The Chief Marketing Technologist blog began keeping track of all the marketing tech available back in 2011, with an updated number each year. This scale is even more impressive when you compare it to the fact that there were 150 martech tools in 2011.

The Decline of New SaaS Company Formation

Tomasz Tunguz

In addition, the sheer size of the Martech landscape growing to more than 3500 companies up from 150 in 2011 implies torrid growth as well. Subverting those incumbents is going to require a meaningfully better product or substantially more effective customer acquisition channel. The rate of new software company formation seems to have declined materially in the past few years. In 2011-2013, about 1450 software companies were founded each year on average.

What is pricing power? How the power of pricing determines success

ProfitWell

New customers will also become more profitable faster, which helps offset customer acquisition costs (CAC) and increases lifetime value (LTV). The most expensive option outside of Huawei’s new entrant to the market was a Samsung phone clocking in at $1,980—three times greater than the phone’s initial price in 2011. Smartphone price increases since 2011 via Bloomberg. Deciding when to adjust your pricing is never easy.

Now’s the Time to Revisit Your Pricing

OpenView Labs

The main benefit of freemium is its role as a low-cost acquisition strategy—it removes the barrier to trying out a product before buying it. Example : Back in 2011, HubSpot sold its software only in Good-Better-Best packages.

A Guide to Retention Marketing

SmartKarrot

While this form of marketing works in tandem with acquisition marketing, its intention is quite a contrast. They grew from 10 percent of total users in 2011 to 46 percent in 2018. You have a solid product. Naturally, you want new users to experience it.

How To Manage A Sales Team: 12 Expert Tips For Success

Sales Hacker

500 list of Fastest Growing Companies for 2011, and Mark was ranked #19 in Forbes’ Top 30 Social Sellers in the World. Andrew is currently VP of Field Sales at GuideSpark and the former VP of WW Sales Development + Pipeline at Responsys, where he helped lead the company to an acquisition by Oracle for $1.6 If you want to learn how to manage a sales team, you’ve come to the right place.