OpenView Labs

JANUARY 12, 2021

Editor’s Note: This is a conversation between Kyle Poyar, VP of Market Strategy at OpenView, and Steven Forth, Partner at Ibbaka. . Back in another lifetime—exactly one year ago—Kyle and I offered up our pricing transformations for 2020. Pricing as a part of the customer experience (CX). Pricing for value adoption.

Pricing 53

Pricing Scale Outsourced Development Market Segmentation 53

ProfitWell

JANUARY 30, 2020

Choosing a product pricing strategy is a momentous decision for any young SaaS company. Not only does it define your early monetization strategy, but it also heavily influences what market segments you’re likely to appeal to directly and how your product will be perceived. One way to do that is through price skimming.

Pricing 52

Pricing Payments SaaS Payments Market Segmentation 52

SaaStr

MARCH 25, 2021

Shopify is #1 in so many market segments, but for “bigger” SMBs BigCommerce (and perhaps less-custom enterprise deployments) is arguably #2 to Shopify. It’s much smaller than Shopify, at $170m ARR vs $3B+ ARR, but it’s still plenty big for us to learn a lot from this big but not #1 player in the market.

Outsourcing Services 200

Outsourcing Services Payments Merchant Services SaaS Payments 200

ProfitWell

FEBRUARY 24, 2020

We’ll go over the different types of discounting, the pros/cons, some alternatives, and if you should consider discounting in your SaaS pricing strategy. What is discount pricing? Discount pricing deducts a certain percentage off the original market price. The pros and cons of a discount pricing strategy.

Pricing 78

Pricing Strategy Market Segmentation Churn 78

Tom Tunguz

SEPTEMBER 12, 2012

When serving B2B customers, your pricing will be dictated by your customers' margins. Most businesses fund new initiatives including marketing and technology projects from profits. The more profits a company generates the greater their willingness to pay for services and ultimately the larger the market size for a startup.

Market Segmentation 100

Market Segmentation Marketing Technical Review Software Review 100

ProfitWell

FEBRUARY 5, 2020

The SaaS field is intensely competitive, and like everyone else, you’re looking for a sales strategy that will help your product bring in more revenue than your competitors. One simple way of doing this is to just charge more for your product—also known as premium pricing. Of course, premium pricing is not without its challenges.

Pricing 67

Pricing Branding Strategy Market Segmentation 67

OpenView Labs

JANUARY 29, 2020

The much-discussed pricing strategy took over the SaaS world and helped fuel the phenomenal success of SaaS pioneers like Dropbox, Evernote, SurveyMonkey and Hootsuite. Not satisfied with reaching $1 billion in annual revenue, Atlassian furthered its commitment to product led growth by jumping on the freemium bandwagon.

Pricing 82

Pricing Payments SaaS Payments Payment Solutions 82

SaaStr

MARCH 8, 2020

2 often has a better product, at least for some market segments. #2 Just revenue growth. It simplifies things and makes it easier to rally sales, product and marketing. #2 And that does maximize short-term revenue. If you’re #2, you don’t need to necessarily cut your prices. 2 Can Go Down Market Easier.

Innovation 244

Innovation Market Segmentation Pricing Branding 244

ProfitWell

NOVEMBER 12, 2019

Your core is a lot like pricing in SaaS companies. Like your core, pricing is a wildly untapped growth lever. Building a strong pricing strategy starts with hiring a professional team to conduct a pricing audit. Building a strong pricing strategy starts with hiring a professional team to conduct a pricing audit.

Payments 45

Payments Pricing Underperforming Technical Team SaaS Payments 45

OpenView Labs

APRIL 20, 2020

Before reading on, please take this survey if you haven’t already: What pricing actions are you taking in response to the COVID-19 crisis? If you want to reflect more deeply on how market dynamics and value propositions are changing, please take this survey: What scenarios are you planning for? Building a pricing action portfolio.

Pricing 52

Pricing SaaS Payments Payment Solutions Payment Methods 52

User Pilot

OCTOBER 26, 2023

TL;DR Growth initiatives are strategies aimed at expanding a company’s customer base, market share, revenue, or profitability. Market Development involves selling existing products to new markets. Market Penetration focuses on selling more existing products within the current market.

Acquisition 105

Acquisition Scale Onboarding Marketplace as a Service 105

Totango

NOVEMBER 15, 2023

This is why we are so proud to have received multiple leadership awards from TrustRadius in the customer success category, including: TrustRadius Best Relationship: Highlights companies that follow through on their sales and marketing promises, deliver on implementation expectations, and identify customers who would buy again.

Customer Success 112

Customer Success Software Review Technical Review Enterprise 112

Tom Tunguz

APRIL 24, 2017

The story behind Fleetmatics and Geotab illustrates the way two companies pursued the SMB logistics market in radically different ways, but built roughly similar sized businesses. Based in Massachussetts, the company generated $320M in revenue in 2016. How did a business at this price point scale, especially with an inside sales team?

Sales Hiring 186

Sales Hiring Strategy Venture Capital Marketing 186

Navint

APRIL 3, 2019

There is a correlation between business performance and the maturity of your recurring revenue business, but correlation doesn’t always turn out the way you would expect. We’ve developed a Recurring Revenue Maturity Curve that we use to help clients navigate these potential pitfalls and enable recurring revenue growth.

Revenue 45

Revenue Scale Compensation Innovation 45

SaaStr

MARCH 8, 2024

With everything in AI moving so rapidly, what’s the best way to price Artificial Intelligence products or SaaS tools with custom AI features and integrations? So we asked the expert, Sandhya Hegde, General Partner at Unusual Ventures to share her best practices and trends for pricing and packaging AI products. Why is pricing so tricky?

AI 181

AI Artificial Intelligence Pricing SaaS 181

SaaSOptics

AUGUST 11, 2022

So far this year, only 42 companies have priced IPO offerings. With the current market looking less than optimistic, how should you plot your next move? The acquirer gets an opportunity to grow market share without doing the heavy lifting of growing and scaling an existing business. Reevaluate your billing and pricing models.

Scale 97

Scale Scaling Technical Review Venture Capital 97

Sixteen Ventures

JULY 17, 2020

In line with my experience, Bessemer Venture Partners says an “acceptable” SaaS churn rate is in the 5 – 7% range ANNUALLY , depending upon whether you measure customers or revenue. His goal is to double his business over the next 12 months… to 2x their current revenue. Is 5% Monthly Churn Good?

Churn 133

Churn SaaS B2C Pricing 133

SaaStr

OCTOBER 6, 2019

Competition in core deals is the root cause of systemic high sales & marketing expenses. You start to become a break-out leader, and there’s a target on your back: Competition leads to price cutting. Referrals and second-order revenue are working. This tends to drive X% growth in leads and Y% growth in revenue.

Sales Hiring 219

Sales Hiring Scale Sales Venture Capital 219

FastSpring

AUGUST 2, 2023

To take advantage of our Contextual platform, its subscription and pricing capabilities, B2B offerings, and advanced reporting tools, just open a ticket with our support team here: [link]. saw their quarter-over-quarter revenue go up 11.87% when they switched to Contextual ! Read how Walls.io

Payment Solutions 136

Payment Solutions Payment Methods Merchant Services AI Search 136

Chaotic Flow

JULY 21, 2015

If the multi-tenant, cloud-based technology isn’t enough, there’s the recurring revenue model which creates all kinds of challenges from accounting to sales compensation to funding. Then, there’s the marketing. The Cloudy Nature of SaaS Pricing. SaaS pricing isn’t that hard to do.

Acquisition 133

Acquisition Scale SaaS Pricing 133

ProfitWell

MARCH 27, 2020

Accurate SaaS reporting will answer some important questions about your business, such as: Has your revenue increased? Revenue is clearly the most important metric, but understanding your revenue flow involves more than just looking to see if it is up or down. Every business has seasonal revenue fluctuations.

Metrics 80

Metrics Software SaaS Churn 80

Baremetrics

APRIL 30, 2021

Examples of Behavioral Segmentation How Baremetrics Can Help with Behavioral Segmentation Analysis. What is Behavioral Segmentation? Behavioral segmentation is one of four types of marketing segmentation. It examines consumers' decision-making processes and shopping activity. Why do your customers buy?

Social Media 105

Social Media Sales Funnel Market Segmentation Subscription 105

SaaSOptics

MAY 19, 2022

Not only is it one of the main drivers of revenue growth for early-stage companies, but it’s a primary goal for SaaS businesses across market stages. More customers = more revenue. Again, corresponding variables such as customer acquisition cost ( CAC ) and customer revenue all tie back to your acquisition strategy.

Acquisition 59

Acquisition Scale Strategy Software Review 59

ProfitWell

MARCH 24, 2020

It’s simple: the subscription revenue model benefits both customers and companies. Meanwhile, companies offering subscriptions can scale with confidence, with predictable revenue and deeper relationships with their customer base. Their pricing ranges from $15-$199 a month for credits varying in value that can be redeemed for classes.

Subscription 72

Subscription Payment Features Payment Methods Payments 72

User Pilot

SEPTEMBER 19, 2023

A good churn prediction dataset will include multiple predictive features that describe your customer – contract type, subscription price, etc. On a larger scale, churn trends can help marketers build customer personas to target a market segment with better messaging and boost customer acquisition.

Churn 105

Churn Machine Learning Artificial Intelligence Data Analysis 105

OPEXEngine

FEBRUARY 1, 2022

It becomes the system of record, even more so today than the CRM or the back-end ERP, because it has the most real-time, accurate, and up-to-date information on the revenue lifecycle. When in hypergrowth, the focus is and should be on revenue growth with healthy unit economics.

SaaS Payments 52

SaaS Payments Payment Services Payment Solutions SaaS 52

User Pilot

JULY 30, 2023

Creating active user segments and providing relevant upgrade prompts to boost customer loyalty and revenue. Segmenting disengaged customers to implement targeted re-engagement campaigns to prevent churn. You can book a Userpilot demo to see how it automates marketing segmentation for your business.

Scale 98

Scale Marketing Onboarding User Experience 98

Tom Tunguz

DECEMBER 3, 2012

They demand different sales cycles, pricing and market positioning - potentially even different team members. Education sales are common when creating a new market (TiVo inventing the DVR) or when bringing existing technologies to new market segments (CRM for restaurants). The Education Sale. The Execution Sale.

Education 100

Education Sales Market Segmentation Consulting 100

Sales Hacker

JUNE 16, 2022

For example, your best, most active customers may pull back on expansion talks or inquire about term or price adjustments. Of course, they don’t want to take their foot off the gas in terms of goals — which leaves a lot of revenue teams grappling to do more with less. That means working holistically, as a revenue team.

Scale 91

Scale Sales Hiring Sales Headcount 91

User Pilot

JANUARY 18, 2024

A pricing survey is the most surefire way to figure out an acceptable price range that maximizes profit without being prohibitively expensive — made possible through the power of user feedback. This guide will help you get to that optimal price point by conducting pricing surveys! What is a pricing survey?

Pricing 105

Pricing Scale Market Segmentation Scaling 105

Andreessen Horowitz

OCTOBER 4, 2023

Introductory calls usually start with the lender seeking out information about, at a minimum: the company’s business overview, market opportunity and revenue model, funding history, valuation of last round, and what the company is looking to achieve with this debt raise. This includes assessments into loan tape (i.e.,

Outsourcing Services 116

Outsourcing Services Software Review Scale Banking 116

ProfitWell

JANUARY 6, 2020

A high churn rate might be indicative of poor product-market fit. Though churn can sometimes be unavoidable, focusing on the correct market segment can dramatically reduce churn. 5 steps to discovering your product-market fit. Your product-market fit may be spot on, but what about your pricing? Churn rates.

Product Marketing 52

Product Marketing Underperforming Technical Team Marketing Advertising 52

OPEXEngine

JANUARY 14, 2020

Price/Revenue Ratio. Source: SEC filings – weighted average by company revenue. Many factors drive the high-growth of SaaS companies, including higher market adoption of SaaS and the structural advantages of the recurring subscription revenue model – see Why SaaS Companies Grow Faster. Public SaaS Companies. -8%.

SaaS Payments 59

SaaS Payments SaaS Scale Customer Lifetime Value 59

ProfitWell

MARCH 24, 2020

It’s simple: the subscription revenue model benefits both customers and companies. Meanwhile, companies offering subscriptions can scale with confidence, with predictable revenue and deeper relationships with their customer base. Their pricing ranges from $15-$199 a month for credits varying in value that can be redeemed for classes.

Subscription 40

Subscription Payment Features Payment Methods Payments 40

FastSpring

JUNE 22, 2022

While this still holds true for finding initial product-market and go-to-market fit, more and more we’re seeing examples of businesses evolving much more quickly into both market segments. Are you making it easy for B2B prospects to understand all your pricing options? That one always hurts.

B2C 124

B2C Payments SaaS Payments B2B 124

Tom Tunguz

JANUARY 16, 2013

Grey arrows represent product pull and green arrows signify revenue flows. Google’s AdSense enables publishers to run ads on their websites to generate revenue. Expensify has adopted a bottoms-up strategy to win their market segment, so they target the end user who values ease of use.

Product Marketing 100

Product Marketing Marketing Advertising Sales 100

SaaSOptics

APRIL 14, 2022

SaaS pricing is typically done on a subscription basis where customers pay a recurring monthly or annual fee to use a company’s software. In recent years, usage-based pricing has become popular amongst growing SaaS companies and their customers—but is it the right choice for your business? Types of Pricing Models.

Payments 98

Payments Pricing SaaS Payments Payment Services 98