Software Platform Consulting

MAY 28, 2019

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. Often, as with P2P, payments, Order to Cash, and EDI networks, there may be a significant time lag between: the bookings or cash—if any—coming from one side, and. Source: [link].

SaaS Payments 56

SaaS Payments Enterprise B2B Metrics 56

Software Platform Consulting

MAY 6, 2019

There are many great articles about SaaS metrics on the web (e.g., There are also great resources for metrics specific to marketplaces (see here ). Invoicing and payment (e.g., SaaS Metrics Unique to Enterprise-Driven B2B Networks. This post and subsequent ones will cover four metrics: Buyer-Supplier Revenue Mix.

Payments 60

Payments Enterprise SaaS Payments Metrics 60

OPEXEngine

JANUARY 11, 2022

Many companies want to migrate their subscription or perpetual business to consumption pricing models; however, it doesn’t always result in incremental business. Companies need to be able to track granular usage data and model usage patterns to support their invoicing, internal sales crediting, and forecasting. This is no small task.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

Kellblog

JANUARY 2, 2024

Customer retention came into sharp focus in 2023 and with it a new, balanced view relying on both NRR and GRR as key retention metrics. While UBP companies were hit harder, as this slightly confusing slide from Iconiq demonstrates [1], they nevertheless grew faster than their subscription counterparts in 2023. Retain is the new add.

AI Search 109

AI Search Technical Review Technical Advisors ChatGPT 109

Baremetrics

AUGUST 11, 2021

Revenue recognition, as per GAAP, states that payment is recognized as revenue after delivering the product or service in its entirety. In the SaaS industry, subscription fees are paid as monthly recurring revenue (MRR) and can be paid in advance for up to a year. Of course, that’s not how SaaS revenue works. (We

Payment Methods 59

Payment Methods SaaS Payments Payment Features Payment Services 59

User Pilot

MARCH 25, 2024

Introduces key metrics that can affect your company’s value. Metrics that can affect SaaS business valuation include Monthly /Annual Recurring Revenue, Customer Acquisition Cost , Customer Lifetime Value , Net Revenue Retention, Total Addressable Market, and YoY Growth Rate. To calculate the metric, add all 4 of them.

SaaS 90

SaaS Customer Lifetime Value Acquisition Metrics 90

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

SaaSOptics

MAY 22, 2018

Magazines, newspapers, life insurance, phones, security services, and a long list of products and services have been sold for decades using the subscription model. The difference now is how important and meaningful the subscription model has become to the national economic engine. What has changed?

Subscription 40

Subscription Payment Features Technical Review Airlines 40

Buffer Resources

FEBRUARY 15, 2024

The program is part of a broader effort by TikTok to enhance monetization opportunities , including other avenues such as LIVE Gifts and subscriptions , TikTok Series , and TikTok Pulse. per 1,000 views, the Creativity Program aims to rectify this by offering enhanced compensation, potentially reaching up to $8.00

Payments 94

Payments Payment Services Payment Solutions Payment Methods 94

OpenView Labs

FEBRUARY 9, 2021

But growing with a usage-model is not as straightforward as traditional subscription SaaS. It requires shifts in go-to-market strategy, sales compensation, financial planning, billing, and much more. Some folks might have feared that investors would hate usage-based pricing because customers aren’t locked into a subscription.

Scale 98

Scale Pricing Scaling AWS 98

SaaSOptics

JANUARY 20, 2022

If your organization is using spreadsheets to manage compensation plans and account for sales commissions, you may be doing a lot of rowing without getting very far. Managing commissions and compensation plans in spreadsheets is a common practice, but it’s also inefficient and outdated. Where Are We Going and Who’s Driving the Boat?

Compensation 77

Compensation Scale compliance Forecasting 77

OPEXEngine

DECEMBER 17, 2019

In the many years I’ve worked with SaaS companies, I continue to observe a surprising lack of standardization of SaaS metrics and performance reporting. My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. The Value of Benchmarking.

Benchmarks 40

Benchmarks Metrics Headcount SaaS 40

Clouded Judgement

JULY 21, 2023

When new products are being built and engineers are hired you’re paying those engineers compensation when the products they’re building aren’t generating any revenue (because they haven’t been built yet…). Companies that do not disclose subscription rev have been left out of the analysis and are listed as NA.

Cloud 130

Cloud Software Sales Hiring Scale 130

OpenView Labs

MARCH 16, 2021

But the shift from pure subscription to usage-based pricing is nearly as complex as going from on-premise to SaaS. SaaS companies exploring a usage-based model need to plan for both go-to-market and operational challenges spanning from pricing to sales compensation to billing. Selecting the right usage metric.

Pricing 52

Pricing Payments SaaS Payments Payment Solutions 52

OpenView Labs

SEPTEMBER 8, 2021

The complexities of pivoting from traditional seat-based subscriptions to usage-based pricing are analogous to making the leap from on-prem to SaaS in the first place. . New Relic has even taken this a step further where sales compensation is now 100% consumption-based , a notable change from their previous compensation structure.

Pricing 64

Pricing Customer Success Scale Compensation 64

Incredo

NOVEMBER 1, 2019

From sales & marketing alignment to SaaS salespeople compensation. If you are satisfied with your sales model and need to learn about employee compensation model, just skip the first article. (3 SaaS Sales team compensation . This is why you always need to look at this metric by comparing one sales rep to another.

SaaS Payments 157

SaaS Payments Payment Methods Sales Recruiting Sales Hiring 157

Baremetrics

SEPTEMBER 8, 2021

If you want to see your business metrics on an easy-to-use dashboard, sign up for the Baremetrics free trial and get started. According to this approach, to value an equity stake in a private company, an interested person looks for a similar, but publicly-traded company to compare specific financial growth metrics. Table of Contents.

Payment Methods 81

Payment Methods SaaS Payments Compensation Payment Services 81

Chargify

SEPTEMBER 10, 2019

The underlying foundation for these new capabilities starts with the ability to add/manage reps and associate them to subscriptions that run through Chargify. . Once a rep-to-subscription association is created, you have instant access to a wealth of revenue data for any given rep. Compensating Other Revenue Generators.

Payments 61

Payments SaaS Payments Scale Compensation 61

Baremetrics

SEPTEMBER 24, 2021

Baremetrics is a business metrics tool that provides 26 metrics about your business, such as MRR, ARR, LTV, total customers, and more. Baremetrics integrates directly with your payment gateways, so information about your customers is automatically piped into the Baremetrics dashboards. Want to try it for yourself?

Finance 98

Finance Venture Capital SaaS Payments Payments 98

Totango

DECEMBER 3, 2020

This continues a trend of high reliance on CS teams in the past few years, and with it has come an evolution in the compensation structures for these team members. In this article, we will breakdown the factors shaping today’s CS compensation structure and discuss how these elements come to impact a business’s revenue and overall success. .

Customer Success 64

Customer Success Compensation Scale Onboarding 64

Kellblog

AUGUST 7, 2019

I’ve been asked about this a few times lately, less because people value my accounting knowledge [1] but rather because people are curious about the CAC impact of such deals and how to compensate sales on them. The question on my mind is how do I look at this from a new ARR bookings, ending ARR, CAC, and sales compensation perspective?

Deferred Revenue 74

Deferred Revenue Pricing Payments SaaS Payments 74

OpenView Labs

APRIL 8, 2021

Yet pivoting from traditional subscriptions to usage-based can be just as big of a shift as making the leap from on-prem to SaaS. Even if customers are asking for usage-based pricing, some companies just don’t have a great usage metric they can use for their pricing. Pure usage-based pricing isn’t for every product.

Pricing 97

Pricing Scale Subscription Payment Features 97

Neil Patel

JUNE 15, 2021

While there are other strategies for tracking your analytics on Medium, the platform offers metrics to help you track your content’s performance. You can view your metrics by clicking your profile picture and then “Stats.” ” From there, you can access a ton of metrics that could provide insight into your content.

Payments 144

Payments Payment Methods Advertising Payment Services 144

ChurnZero

OCTOBER 5, 2021

Another one of our favorite moments was our Founder, You Mon Tsang’s well attended session on the “ Top Customer Metrics For Your Board and Investors and How to Nail Them with ChurnZero’s CEO.” Are your compensation plans setting your business up for longer-term success or subscription contraction?

Customer Success 95

Customer Success Scale Customer Lifetime Value Compensation 95

Chart Mogul

SEPTEMBER 15, 2023

These materials will take you from the basics SaaS Metrics — 101 to more advanced topics like Go-To-Market and Product-Led Growth (PLG). Here is a comprehensive list of SaaS blogs that goes through the most common metrics and terms. Only a handful of metrics really matter. I’ve tried – just ask my in laws.

Scale 52

Scale Underperforming Technical Team Sales Hiring SaaS 52

Valuize Consulting

APRIL 8, 2022

At the same time, 80% of your revenue as a recurring revenue organization comes from retention and expansion. In the subscription economy, Customer Success is the economic lifeblood of your organization and should be empowered to focus on their area of responsibility: fostering deep and lasting relationships with customers.

Innovation 52

Innovation Underperforming Technical Team Outsourced Development Compensation 52

Tom Tunguz

JULY 14, 2015

Bloomberg, provider of the eponymous financial information terminals, generates roughly $10B annually in subscription revenues, and is wildly profitable. And many of the business’ key metrics are exposed for the first time. I don’t mean to imply that there aren’t terrifically well run private companies.

Compensation 111

Compensation Finance Forecasting Communication 111

Kellblog

MARCH 13, 2020

Back in the pre-subscription era, basically all the revenue — save for a little bit of services and some maintenance that practically renewed itself — came from sales anyway. Then the subscription era came along. The first complication was expansion ARR (annual recurring revenue). New ARR is their metric.

VP of Engineering 98

VP of Engineering Customer Success Sales Recruiting Acquisition 98

OPEXEngine

OCTOBER 5, 2021

The shift to cloud-based subscription models is creating even more value in a thriving sector. In more mature software companies, we see oversized returns for companies that are moving to software-as-a-service subscription models (see Figure 1). Metrics will also change. Sticky after all. Buyers and sellers.

Software Review 52

Software Review DevOps as a Service Software Underperforming Technical Team 52

Chart Mogul

OCTOBER 15, 2021

To grow your business, revenue metrics should be top of mind. At SaaStr, we realized that not everyone has a reliable way to track subscription metrics. And if they do, their metrics are cosmetic and don’t provide enough insight to base decisions on. At the core of growth is understanding your subscription metrics.

Sales Recruiting 52

Sales Recruiting Sales Hiring Travel Compensation 52

Valuize Consulting

NOVEMBER 9, 2021

On the ground level, another way you get the focus and attention of Sales and CS is aligning your compensation for Sales teams around doing the right thing for the customer. In collaboration with your company’s leadership team, you need to understand; where are we at today with our core economic metrics ? Where do we want to go?

VP of Engineering 52

VP of Engineering Technical Advisors Compensation Cloud 52

Chart Mogul

MAY 30, 2019

We also needed to ensure each team and each individual contributor had clear goals and metrics to track success. This will help with determining your success management metrics. Customer Success Management metrics. How do you build a compensation plan for a new customer success team and strategy?

Underperforming Technical Team 78

Underperforming Technical Team Development Strategy Management 78

OPEXEngine

JUNE 29, 2020

Since these companies aren’t growing quickly, they have to compensate with high cash flow and high EBITDA margins if they want to be seen as attractive. So which profit metric should you use? What if your business has a low growth rate?

Benchmarks 52

Benchmarks SaaS Sales Hiring Scale 52

ChurnZero

JUNE 11, 2021

A customer health score is a value that indicates the likelihood that a customer will renew their subscription or service with your company. During that time, health score factors (that are based on features, use cases, processes, leadership, and KPIs) have likely changed which affect the metrics associated with your health score. .

Software Review 96

Software Review Systems Review Scale Underperforming Technical Team 96

Baremetrics

JANUARY 10, 2022

you can buy many games for your PlayStation) the complementary good is a consumable (all those annoying ink cartridges for your printer) With this strategy, you can make enough optional product sales to compensate for the lower price on the main product. Try the free trial today !

Pricing 98

Pricing Airlines Systems Review Outsourced Development 98

Baremetrics

JULY 30, 2020

In order to understand how to improve your MRR growth rate, you need to understand how to calculate the metric. It’s like trying to work out to compensate for your poor diet. If you have Baremetrics, you can find this data under Metrics > User Churn. But stick with me for a second. Sort the table by churn rate.

Churn 125

Churn Acquisition Pricing Revenue 125

ChurnZero

OCTOBER 1, 2022

If you are going to have that mix, consider—and I’m going to go back to compensation, you throw money at the problem and sometimes it works—but think about double spiffing while you go through that change management so that there is not competition while people are figuring out how the wheels work and how the motions work.

Scale 97

Scale Customer Success Revenue Retention 97