Subscription Flow

DECEMBER 15, 2023

The essence of the Subscription Economy lies in its ability to forge lasting relationships between businesses and consumers, transcending traditional transactional models. For instance, subscription businesses observe customer retention rates, customer acquisition, and whatnot.

Subscription 59

Subscription Payment Features Healthcare Technical Review 59

ProfitWell

JANUARY 13, 2020

There’s a question that every startup founder, subscription service provider, and ecommerce store owner, needs to ask themselves on a regular basis: Is this the most effective price for my product or service? Especially if you’re trying to get ahead in today’s highly competitive SaaS and subscription markets.

Pricing 52

Pricing Subscription Payment Features Strategy 52

Subscription Flow

DECEMBER 1, 2023

Recurring revenue models, or subscription models , can be a great way for businesses to generate income while providing customers with the options they want. However, a distinct set of metrics is needed for the subscription business model in order to track and keep an eye on the company’s health.

Subscription 59

Subscription Payment Features Metrics Business 59

SaaStr

SEPTEMBER 19, 2023

Some of the changes we’ve seen in the last year or two include: CAC reduction Headcount optimization Price complexity Quality of revenue A different environment means a different strategy, and Notion Capital lays out four business model changes that could be helpful based on what peers are doing. Then, usage-based pricing took off.

Business Model 284

Business Model SaaS Payments Payments Headcount 284

OPEXEngine

DECEMBER 7, 2021

Dive Brief: Usage-based pricing has grown 32% this year and now 45% of software-as-a-service (SaaS) companies use it all or in part, up from 34%, an OpenView survey shows. The subscription in the earlier model was a little bit more like shelfware,” the company’s CFO, Chitra Balasubramanian, told CFO Dive. Pricing model growth.

Subscription 52

Subscription Payment Features Pricing SaaS 52

Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

Baremetrics

AUGUST 22, 2021

Subscription revenue can be defined most simply as a model which generates income from customers through recurring fees that are paid at regular intervals. Subscription Pricing Models How to Get Subscription Pricing Right The Advantages of a Subscription Revenue Model 1. Table of Contents. Table of Contents.

Payment Features 90

Payment Features Payments Subscription Revenue 90

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Speak to other founders.

Acquisition 105

Acquisition Startup Technical Review Scale 105

SaaSOptics

MAY 19, 2022

What Is Customer Acquisition? Customer Acquisition is the process of acquiring new customers in a business. For subscription-based SaaS businesses, your customer acquisition metrics indicate how effectively you acquire new users via sales, marketing, or a product-led approach like a free trial. Plain and simple.

Acquisition 59

Acquisition Scale Strategy Software Review 59

SaaStr

NOVEMBER 28, 2022

was pretty simplified, mostly made up of annual or monthly subscriptions. From 2010 until 2015, the SaaS world was becoming more complex with the introduction of static bundles and recurring revenue as an addition to the annual/monthly subscription model. While annual/monthly subscriptions still exist, they are more complex than ever.

Scale 232

Scale Finance Sales Hiring Scaling 232

Neil Patel

APRIL 12, 2021

They offer some of the best-known subscription boxes around, reflecting an increasingly popular (and potentially lucrative) business model. Why Should You Launch a Subscription Box? According to MarketsandMarkets , the subscription and recurring billing market will grow to around $7.8 How to Create a Subscription Box.

Outsourcing Services 123

Outsourcing Services Payment Methods Subscription Payment Features 123

Clouded Judgement

JANUARY 12, 2024

It’s better to come to that realization today than grinding for 2 more years only to realize it then when your cash balance has dried up and all of a sudden you have no leverage in an acquisition. An acquisition at $200m can be life changing for founders, or it can be worth nothing if they raised $250m at $1B valuation back in 2021.

Cloud 284

Cloud Venture Capital Acquisition Metrics 284

Clouded Judgement

APRIL 11, 2024

This has all resulted in the median stock price declining 5% YTD. Their ongoing revenue can “fund” new logo acquisition and allow the business to operate profitably at paybacks much larger than what private companies (with smaller ARR bases) can afford. What’s going on with rates (the 10Y has gone from 3.9%

Cloud 177

Cloud Software Azure AWS 177

ProfitWell

MARCH 9, 2020

The subscription business model has seen an immense rise in popularity in recent years, and with good reason. The subscription-based economy grew 350% between 2012 and 2019, and subscription businesses grew revenues about five times faster than S&P 500 company revenues during that time. What is subscription marketing?

Subscription 64

Subscription Payment Features Payment Methods Marketing 64

ProfitWell

NOVEMBER 6, 2019

The subscription revenue model is hardly new. But in the past few years, subscriptions have seen a bit of a resurgence. In fact, you'd be hard-pressed to find an industry that hasn't seen at least one subscription success story: Cars. Even the humble houseplant doesn’t seem immune to the subscription economy.

Payment Features 74

Payment Features Payments Subscription Revenue 74

Chart Mogul

APRIL 15, 2021

Keeping your pace of growth while going through an acquisition is difficult. He noticed almost right away that it would be easy to re-package what they created for internal use as a product and sell it as subscription-based software. Acquisition by Sage. A similar shift has also occurred in their strategy after the acquisition.

Acquisition 83

Acquisition Data Scale Banking 83

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period. Price comparison engines.

Acquisition 63

Acquisition Retention Social Media Advertising 63

FastSpring

FEBRUARY 13, 2020

A SaaS pricing page does more than attach a price tag to your products. If it’s done right, a pricing page can tell a story of your products and give prospects an insight into what they can gain by purchasing them. If these simple elements of your pricing page aren’t on point, you’ll lose a lot of potential revenue.

Pricing 79

Pricing SaaS Acquisition Enterprise 79

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 97

SaaS Payments Customer Lifetime Value Payment Solutions Acquisition 97

ProfitWell

FEBRUARY 10, 2020

Whether you know it or not, you've encountered the economy pricing model. It’s a pricing strategy employed by businesses to make generic and commodity goods appealing. Store-brand products and generic medications are some of the best examples of economy pricing at work. What is economy pricing?

Pricing 59

Pricing Airlines Advertising Acquisition 59

Chart Mogul

AUGUST 20, 2020

4x entrepreneur Andrew Gazdecki shares how you can better prepare yourself for your startup's acquisition, and make the journey a rewarding one. The better prepared you are for an acquisition, the smoother it’ll go, leaving you financially, operationally, and psychologically stronger during negotiations. Speak to other founders.

Acquisition 52

Acquisition Startup Technical Review Scale 52

ProfitWell

APRIL 2, 2020

If you take a moment to think about it, can you confidently tell somebody how many subscription services you're a member of? Even if you can list off every subscription service you're a die-hard fan of, you may eventually find yourself feeling dissatisfied on a mission to sign up for even more subscriptions.

Subscription 67

Subscription Payment Features Customer Lifetime Value Payment Services 67

SaaStr

OCTOBER 26, 2022

Leaders like ZoomInfo and Paycom that combine strong growth with strong profits have seen their stock prices stay relatively high, often at 15x ARR still. Pure software (“Creative Subscriptions”) has more traditional software gross margins of 61%. Embedded fintech often has a price. #3. But the impact hasn’t been even.

Payments 259

Payments Payment Solutions Payment Methods SaaS Payments 259

SaaStr

FEBRUARY 9, 2024

From a Go-To-Market perspective, Zapier uses a hybrid model that involves a combination of freemium offerings, subscription plans, and partnerships. So when you think about acquisition, retention, and expansion, they all revolve around the product capabilities in a PLG motion. At the same time? The product becomes your sales team.

Scale 299

Scale Sales Hiring Sales Marketing 299

Chargify

OCTOBER 21, 2020

As many leading companies know, customer subscription management isn’t a “set it and forget it” concept. It is important for businesses to constantly analyze the health of their subscription model to make sure it is truly working for their customers and their bottom line. Refine pricing models. Track customer demand.

Subscription 63

Subscription Payment Features Payment Services SaaS Payments 63

Clouded Judgement

APRIL 5, 2024

Competitors start telling prospects you’re competing on that “that company will screw you in the future because their VCs will force them to price gouge you so they can make money.” ” Acquisitions become tougher because the preference stack is higher. This list goes on. The market sold off after this.

Cloud 161

Cloud Scale Pricing Revenue 161

ProfitWell

APRIL 28, 2020

Many companies are now switching from a perpetual licensing model to subscription-based licensing. This pricing model can be a win-win for both the consumer and the business. In this post, we'll compare the perpetual licensing model with subscription licensing so you can choose the right one for your product.

Subscription 54

Subscription Payment Features Software Pricing 54

ProfitWell

NOVEMBER 13, 2019

The good news is that the most important subscription KPIs are constant across SaaS businesses, whether you’re selling a timekeeping software or an accounting tool. Read on to find out what the top six subscription KPIs are, why you should be tracking them, and how. Why subscription companies need to track KPIs. SaaS Bookings.

Subscription 80

Subscription Payment Features Customer Lifetime Value Benchmarks 80

SaaStr

DECEMBER 27, 2020

If New Relic had even 120% NRR, it’s growth rate with the exact same rate of new customer acquisition would be 137% instead. New consumption pricing model has increased revenue 15% where rolled out. Done right, this sort of anti-SaaS pricing model can lead to significantly more revenue.

Scale 332

Scale Outsourced Development SMB Cloud 332

ProfitWell

JANUARY 24, 2020

But, penetration pricing can help. Based on the idea that everyone loves a good deal, penetration pricing helps you gain footing in a new market by competing on price. Offering a significantly lower price than what people expect helps you acquire customers faster. What is penetration pricing?

Pricing 52

Pricing Wireless Acquisition Entertainment 52

FastSpring

DECEMBER 20, 2018

SaaS Pricing can be difficult to determine for many digital businesses. First, you need to be sure that you’ve priced your product fairly, and second, you want to offer the payment option that will appeal to the largest number of users. Usage-based pricing models, like pay-per-use, certainly have their place.

Payment Features 64

Payment Features SaaS Payments Subscription Payment Solutions 64

FastSpring

MAY 14, 2019

The price you paid at checkout was essentially a perpetual license for the lifetime of the application. Here’s how your company can benefit from switching from a perpetual license to a subscription plan. Reason #1: Subscriptions support product innovation. Reason #2: Subscriptions increase the accessibility of your software.

Payment Features 71

Payment Features Payment Methods Subscription Payment Services 71

Chart Mogul

APRIL 15, 2021

Keeping your pace of growth while going through an acquisition is difficult. He noticed almost right away that it would be easy to re-package what they created for internal use as a product and sell it as subscription-based software. Acquisition by Sage. A similar shift has also occurred in their strategy after the acquisition.

Acquisition 52

Acquisition Data Scale Banking 52

User Pilot

MARCH 25, 2024

An accurate valuation is necessary to secure the right price for the company or adequate funding without diluting its share value. The metric is used by companies with quarterly or yearly subscription plans. ARR is calculated by adding all recurring revenue from subscriptions as well as add-ons and upgrades.

SaaS 93

SaaS Customer Lifetime Value Acquisition Metrics 93

Clouded Judgement

DECEMBER 21, 2023

This matters a lot more when stock prices are going down, and management teams often grant additional shares to make employees whole (thus increasing dilution even more) Net Revenue Retention High net revenue retention is the fourth aspect of a successful quarter, and one of my favorite metrics to evaluate in private SaaS companies.

Cloud 177

Cloud Software Benchmarks Retention 177

ProfitWell

AUGUST 15, 2019

They’re confident in their pricing strategy since they know it’s rooted in real data. Those two crucial bits of information might seem simple on the surface, but they drive the vast majority of pricing mistakes companies make. What are pricing analytics? Why pricing analytics are so important for SaaS companies.

Pricing 41

Pricing Scale Acquisition Customer Lifetime Value 41

ProfitWell

APRIL 29, 2020

Talking about the different pricing methods, for me, is equivalent to a kid in a candy store. Of course, like a candy store, there are many pricing options but you can’t use them all. We of course have our favorite pricing methods here at ProfitWell, but it’s good to understand the differences, good or bad. Value-based pricing.

Pricing 52

Pricing Subscription Payment Features Airlines 52