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? Finding an effective price helps you solidify your position, build trust with your customers, and achieve your business goals.

Pricing 52

Pricing Subscription Payment Features Strategy 52

OpenView Labs

FEBRUARY 4, 2020

Segment CEO and Co-founder Peter Reinhardt was recently reflecting on what were his top lessons learned from changing packages and pricing. While Segment may be an extreme case, the business is far from unique in learning that it was leaving money on the table due to its pricing. Pricing Is Your Best Shot at Growing 25% Faster.

Pricing 60

Pricing Scale Technical Review Software Review 60

Tom Tunguz

SEPTEMBER 21, 2014

This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we’ve looked at in the past have been purely SaaS businesses.

Benchmarks 100

Benchmarks SaaS Payments Metrics Scale 100

Stax

FEBRUARY 21, 2024

And because of the digital nature of SaaS businesses and their subscription-based business models, the ability to collect data on how the company is performing is easier and faster than ever. It helps businesses understand the effectiveness of their customer acquisition and retention strategies.

SaaS Payments 88

SaaS Payments Payments Payment Services Stax 88

OpenView Labs

SEPTEMBER 17, 2019

This week we released our third annual Expansion SaaS Benchmarks report. But benchmarks alone are not enough. We’ve got to make the leap from benchmarks to action. Here’s our advice on how to use the benchmark data to grow even faster in 2020. Lack of segmentation leads to weak product-market fit.

Benchmarks 41

Benchmarks Underperforming Technical Team Scale SaaS 41

FastSpring

SEPTEMBER 16, 2022

Valid question, and I’m going to answer it — because the reasons (plural) we have for investing in this initiative may not be as simple as the most cynical among us assume. As a business person yourself, you know how it works. But you might still be wondering, “But what’s in it for FastSpring?”. Position Yourself as an Expert.

SaaS Payments 133

SaaS Payments Payment Solutions Merchant Services Software Review 133

Baremetrics

AUGUST 1, 2021

Acquiring customers for SaaS is a completely different ball game altogether than, say, for the traditional business models (think: eCommerce, for instance). In the SaaS industry, acquiring new leads through short-term marketing promotions will not cut it--which works as a killer strategy for the eCommerce business model.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

OPEXEngine

MAY 18, 2021

Contracted expansion revenue i.e. add-ons or upgrades that affect the annual subscription price of the customer should be included. . Conversely, EBITDA is more highly valued for a $500M company than for a $5M recurring revenue company were investing in Sales & Marketing, and systems to scale the business are critical to future success.

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

OPEXEngine

JANUARY 13, 2021

Large tech companies are expected to be very active in M&A in 2021, as they build out SaaS offerings and platform strategies, especially given high stock prices. From the middle: traditional tech companies, even hardware companies, are entering SaaS markets with new offerings and models. Is this the year of vertical SaaS break-out?

Sales Recruiting 52

Sales Recruiting Sales Hiring SaaS Benchmarks 52

OPEXEngine

JANUARY 25, 2022

With 331 SPAC deals enthusiastically closed in 2021, and the collective pool now trading on average 42% below purchase price— we are living in a far different landscape of capitalization opportunities than we were this time last year. Investment Scrutiny. But it’s not all bad news. . Speed to Market. G&A Spend in IPO Year.

Venture Capital 52

Venture Capital Cybersecurity Forecasting Finance 52

OPEXEngine

JUNE 11, 2020

The terms aren’t universally understood, nor are the implications of each on the financial model of a company, so the following is an effort to provide an overview. At OPEXEngine, we pull apart the different nuances of each business model to make sure we are benchmarking companies correctly.

SaaS Payments 52

SaaS Payments Payment Solutions Subscription Payment Features 52

ChurnZero

MARCH 18, 2022

Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021. Their report shares the results from a survey of private SaaS companies which KBCM Technology Group’s software investment banking team conducted in June and July 2021.

Customer Success 98

Customer Success Metrics SaaS Banking 98

OPEXEngine

FEBRUARY 22, 2022

Being “stuck in the middle” drives SMM SaaS companies to invest in one of two strategies. The first option is to move up the value chain by improving product features, functionality, and quality to maintain Average Selling Price and to compete effectively with higher-end players. Financial Profile of SMM SaaS Companies. Direct Sales.

SaaS Payments 52

SaaS Payments Payment Services Payment Methods Marketplace as a Service 52

Neil Patel

MAY 4, 2021

Data as a service is beneficial to any business model informed by data. Here are a few ways you can use this data to improve your marketing tactics : Benchmarking Reports. Workday is one data as a service provider offering exceptional benchmarking tools. Business Intelligence Sharing. Consider your business needs.

Marketplace as a Service 76

Marketplace as a Service Data Technical Review Marketing 76

OPEXEngine

FEBRUARY 1, 2022

A robust tech stack lays the foundation for future growth, providing the regulatory and reporting framework you need, as well as automated data management to increase the flexibility and scalability your business requires. Measure what matters and invest appropriately.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

Totango

AUGUST 25, 2022

For software service providers, customer engagement SaaS strategies play a central role in a successful business model. Proactive interactions with your customers can increase satisfaction and retention, driving repeat business and referral revenue. How much time are users investing in your service ?

Engagement 96

Engagement Strategy SaaS Scale 96

The Angel VC

JUNE 13, 2014

In fact, according to this Bloomberg story , Uber's new valuation sets a record for investments into privately-held tech startups. Price: The company's budget option, UberX, is cheaper than normal taxis. Huge congrats to Bill Gurley and his partners at Benchmark for betting on Uber early! at a $17B valuation.

Payment Solutions 104

Payment Solutions Marketplace as a Service Payment Services Payment Methods 104

ProfitWell

JULY 21, 2020

These two metrics work together to reveal the overall health and sustainability of your business model. Your LTV:CAC ratio is the return on investment for each customer. One last action item : optimize your pricing. LTV:CAC reveals the overall health of your business and sustainability. click here. click here.

Customer Lifetime Value 54

Customer Lifetime Value B2B Acquisition Forecasting 54

ProfitWell

OCTOBER 16, 2019

Churn rates for subscription companies vary widely across both external dimensions (like the market you’re in and your target customers’ willingness to pay ) and internal dimensions (like your chosen pricing structure , contract lengths, and company age). Churn can also vary widely based on your pricing. Longer contracts reduce churn.

Churn 55

Churn SaaS Payments Payments Payment Methods 55

Baremetrics

MAY 7, 2019

More recently, the concept of “fund-strapping,” aka taking outside investment or external funding options with the intention of not having to raise any more funding again, has become another viable option for businesses. Build your startup in a way that you don’t need investment. The primary investment is usually time.

Finance 111

Finance Startup SaaS Payments Payment Methods 111

OPEXEngine

JULY 28, 2020

Creative software is still Adobe’s core, but the company is now a leader in market analytics and web development technology, and it is currently investing in artificial intelligence and machine learning. Since 2008, its revenue has tripled and its stock price has soared 14-fold in response. It also involves adopting a new mindset.

Payment Solutions 52

Payment Solutions Strategy Payment Services Scale 52

OPEXEngine

NOVEMBER 17, 2020

If you are an early-stage or growth SaaS company, most likely all your sales and marketing expenses are invested in acquiring new customers. I was speaking recently with a new FP&A director at a SaaS company, and we reviewed the company’s KPIs compared to benchmarks. As a SaaS company scales, your CAC components will change.

Systems Review 52

Systems Review Technical Review Payment Features Scale 52

ChurnZero

OCTOBER 22, 2020

When you opt to build your own Customer Success software, you miss out on the collective insights a vendor gains from working with thousands of customers of varied sizes, industries, and business models. There’s also the competitive aspect to weigh. But, do your due diligence and weigh the pros and cons of each side.

Software Review 59

Software Review Technical Review Outsourcing Services Customer Success 59

SaaStr

OCTOBER 31, 2019

It was around that time about 12 years ago that Jeff Bezos launched AWS, and some of you may remember that, when he did this, Wall Street analysts were looking at him and saying, “Why would you take what’s already a very unprofitable business and drive it further into the red by investing in this AWS initiative?”

Cloud 100

Cloud Scale AWS Machine Learning 100

Sales Hacker

SEPTEMBER 11, 2018

The difference between good and great SaaS businesses. The optimal pricing strategy to IPO. What Data To Look At When You’re In Series A Investment [26:02]. He invests in early-stage software and infrastructure companies. What Data To Look At When You’re In Series A Of Investment. What You’ll Learn. Welcome Tomasz!

Scale 42

Scale SaaS Investment Construction 42

CustomerSuccessBox

NOVEMBER 9, 2021

The SaaS Business Model. Here are 7 customer success metrics to record if you are a SaaS business. Why SaaS Business Model works? It should also be noted that the LTV can also make it possible to enhance a business through the value of its customer portfolio. SaaS vendors do not play on the same court.

Business Model 52

Business Model SaaS Business Software Review 52

Practical Advice on SaaS marketing

JULY 9, 2016

There are certainly plenty of surveys and published benchmarks on SaaS metrics that try to provide guidance. For example, it’s tough to make the SaaS business model work when attrition exceeds 10 percent. Use caution with rules of thumb But you should be careful not to take these SaaS benchmarks as gospel.

Benchmarks 100

Benchmarks Metrics SaaS Acquisition 100

Sales Hacker

SEPTEMBER 4, 2018

In the buyer-centric digital economy where access to product information is just a touch away, the likelihood of business success depends primarily on the buyer experience. Here are some eye-opening facts: Customer experience will topple the product itself and its price tag as the key brand differentiator by 2020, according to a Walker study.

Customer Success 56

Customer Success Scale Technical Review Systems Review 56

Andreessen Horowitz

MARCH 21, 2024

We believe that AI startups who 1) build for enterprises’ AI-centric strategic initiatives while anticipating their pain points, and 2) move from a services-heavy approach to building scalable products will capture this new wave of investment and carve out significant market share. Measuring ROI is still an art and a science.

Generative AI 145

Generative AI AI Enterprise Artificial Intelligence 145

Buffer Resources

OCTOBER 2, 2023

Business Snapshot Years in business: 6.5 This sounds complicated but it’s really a simple equation to make sure our prices are high enough—especially as we continue to improve our product (which often means higher expenses!). If I need to deny myself investments, I see it as proof that my business model is off.

Payment Methods 116

Payment Methods Sales Hiring Payments Business 116

Chart Mogul

SEPTEMBER 15, 2023

The SaaS Business Model & Metrics: Understand the Key Drivers for Success by David Skok, Matrix Partners SaaS Metrics — 201 A slightly deeper dive into SaaS industry metrics. Benchmarks across the PLG user journey The hardest part of PLG might actually be… marketing?! Because this drives investment decisions.

Scale 52

Scale Underperforming Technical Team SaaS Sales Hiring 52

Unbounce

NOVEMBER 5, 2020

With products extending into virtually every category imaginable, competitive pricing, and guaranteed shipping options, most online shoppers have little reason to look anywhere else. If that’s not feasible for your business model, you can also compete on customer service. Competitive pricing. Opportunity?

Scale 144

Scale Marketing Merchant Services Social Media 144

Totango

JULY 1, 2022

Customer loyalty is a key to repeat business and referral generation for any business model. For B2B SaaS companies, customer loyalty drives subscription renewals and brand advocacy, making it a critical component of a profitable business model. First, we’ll discuss what customer loyalty is.

B2B 107

B2B B2C Underperforming Technical Team Business 107

SaaStr

JUNE 10, 2021

And I’m here to talk about SaaS products and how they can be delivered, and how you build a sustainable business for your own SaaS company as you serve customers. Because the packaging and pricing and thinking of the product will radically influence how successful you can be. If you are One Medical, what is the business model?

Outsourcing Services 140

Outsourcing Services Marketplace as a Service Outsourced Development Scale 140

SmartKarrot

JANUARY 12, 2021

In a typical SaaS product, if the ideal profit margin is around 80 to 90%, it means SaaS COGS benchmark should be around 10 to 20% of the total product price. For running a business, there are two types of costs involved – essential and variable. It’s not a one-time sale of the product you are after in a SaaS business.

Customer Success 10

Customer Success Customer Lifetime Value SaaS Scale 10

yoursales

JUNE 23, 2023

In order to put CRMs to the test as objectively as possible, our CRM testing methodology will benchmark their performance against each of the top 5 problems from the Top 5 Problems Sales Leaders Want CRM to Solve: Storing and organizing customer data , voted on by 59,9% of responders. Are You Different? Is Your Tech Stack Different?

Technical Review 88

Technical Review Systems Review Forecasting Software Review 88

SaaStr

NOVEMBER 21, 2020

How does Rob think through pricing today in a way that encourages land and expand? How does Rob think about usage vs seat-based pricing in SaaS? How should sales and marketing work together on pricing? You look at the forward-looking ARR multiples on the stock price, and they were a lot lower back then.

SaaS Payments 260

SaaS Payments Scale Payment Services Payment Solutions 260