FastSpring

SEPTEMBER 16, 2022

But what about pricing? When FastSpring’s Chief Product Officer Kurt Smith worked with growth-stage to Fortune 100 companies at Accel-KKR, he consistently saw pricing as one of the most essential growth levers they employed to meet their next revenue goal. Why You Shouldn’t Trust How Your Competitor’s Price.

Pricing 110

Pricing Payment Solutions Payment Services SaaS Payments 110

User Pilot

OCTOBER 24, 2023

From the messaging, positioning, and pricing models, every little detail needs to be perfect for product-led growth to take off. TL;DR Usage-based pricing is a consumption-based pricing model that charges customers based on how much they use a product (instead of at a flat monthly rate). What is usage-based pricing?

Pricing 103

Pricing Payment Solutions SaaS Payments Payments 103

OpenView Labs

FEBRUARY 9, 2021

This is why we’re seeing more and more SaaS companies—Datadog, Twilio, AWS, Snowflake, and Stripe, to name a few—find success with product led growth paired with usage-based pricing. Usage-based pricing will be the key to successful monetization in the future.”. Usage-based pricing is in all layers of the tech stack.

Scale 98

Scale Pricing Scaling AWS 98

The SaaS CFO

MAY 23, 2023

Average Cost of Service (ACS) is an important but obscure SaaS metric for SaaS finance. I reference this metric when speaking with SaaS founders and finance teams about the balance between their cost structure and pricing plans. It’s also a component of my SaaS Scalability Index (SSI).

Scaling 98

Scaling Finance Metrics Pricing 98

SaaStr

DECEMBER 17, 2021

Pricing is one of the most challenging elements to get right for SaaS companies. How much should you charge, and what pricing model works best? In an era of empowered buyers, vendors should take care to remove obstacles from the pricing process or risk losing the customer to a competitor.

Pricing 197

Pricing Scale Retention AI 197

SaaStr

APRIL 19, 2024

Today that would be a dream, but in 2011, people didn’t understand the metrics around recurring revenue businesses, so investors weren’t sure it was a good business. You Need A Business Model with Economies of Scale As you’re trying to reverse engineer whether your business model makes sense, you have to look at your business model.

Engineering 237

Engineering Business Model Pricing Scaling 237

SaaStr

NOVEMBER 25, 2022

Scale-ups are exciting. Scaling to satisfy customers’ demands depends on innovation and foresight combined with enterprise-ready technology and the right partners. On top of considerable dedication, creating a scale-up requires a functional edge—a unique and unreplicable capability compared to the players in the industry.

Scale 214

Scale Scaling Marketplace as a Service Entrepreneurship 214

SaaStr

OCTOBER 11, 2023

Eran Zimman, monday.com’s co-founder and co-CEO, shares his secrets to scaling and growth in an unpredictable market. Serve customers a CRM or project management first, and as they scale and use it more, they’re exposed to more features. They kept doing it after the economy changed, and they also scaled it. It’s cheap.

Scale 164

Scale Sales Hiring Scaling Banking 164

SaaStr

MAY 17, 2021

We overindex on the inside information, and how quickly we assume they could scale up … and because of that, we let their other weaknesses slide in candidates we otherwise wouldn’t hire. Sales reps don’t have to scale in a day. So a rep with a $120k OTE has to eventually close at least $480k at scale. Giving Reps Too Much Time.

Scale 224

Scale Sales Hiring Scaling Sales 224

SaaStr

MARCH 27, 2024

To me, this is just the impressive metric of all. Despite raising prices and selling more products, HubSpot ACV is basically flat at $11,365. Clearly, even SMBs are working to moderate spend, even as vendors increase pricing. So price increases don’t always automatically lead to an ACV / ARPU bump. #4.

Scale 232

Scale Cloud Scaling Pricing 232

Intercom, Inc.

SEPTEMBER 10, 2020

Applying data and science to scaling has become easier because of the shift that’s happened in the software industry over the past 15 years, from outside sales to inside sales. Or, even if they’re leaning towards the latter, they’re often not using the right metrics. A data-driven framework for scaling.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

Baremetrics

AUGUST 8, 2021

For most, the easiest ways to increase customer acquisition rates are to offer a freemium model or price your product on the lower end of the spectrum. However, to keep your business afloat, you’ll need to effect a SaaS price increase. Ensures You Attract the Right Customers When Should You Increase Your Pricing?

Pricing 111

Pricing SaaS Scale Churn 111

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. But because SMBs are rarely digital-first, their recent challenges allowed HubSpot to leverage their years of experience in marketing automation, as it became a core feature of how these companies worked to scale.

Scale 215

Scale SMB Scaling Innovation 215

Baremetrics

JANUARY 24, 2021

This article will discuss the relationship between price change and customer retention. If I raise the price, will customers leave? The biggest challenge that leaders face is understanding how to think about price optimization and customer retention with the right framework. Does my new price make customers unsubscribe sooner?

Retention 126

Retention Pricing SaaS Subscription 126

Baremetrics

SEPTEMBER 28, 2021

Penetration pricing is one of the many pricing strategies employed by companies in an attempt to increase their revenue and/or profit. Penetration pricing is the strategy of offering extremely low prices when entering a market to entice customers to try a product or service. The advantages of penetration pricing 2.

Pricing 90

Pricing Scale Branding Scaling 90

Tom Tunguz

AUGUST 26, 2019

To put the company’s stellar trajectory in context, I’ve plotted its metrics relative to two other incredible monitoring companies: NewRelic (NEWR) and AppDynamics (APPD). DataDog is 2x the scale of New Relic but growing just as fast. An amazing feat to be growing fast at scale and profitable. as of this morning.

Metrics 189

Metrics Benchmarks Scale User Experience 189

User Pilot

APRIL 23, 2023

Do you know which product health metrics to track to achieve long-term success for your SaaS business? The right metrics and data will offer valuable product growth insights to help you make data-driven decisions about optimizing your products’ performance. What are product health metrics? Let’s start!

Metrics 91

Metrics Customer Lifetime Value SaaS Scale 91

OpenView Labs

APRIL 8, 2021

While many of the most successful public and private SaaS companies were already usage-based, there wasn’t a clear playbook on the complexities of scaling a usage-based business. The response since the usage-based pricing playbook has far exceeded my expectations. Pure usage-based pricing isn’t for every product.

Pricing 97

Pricing Scale Subscription Payment Features 97

Clouded Judgement

APRIL 19, 2024

Subscribe now Rubrik IPO Update This week Rubrik launched their IPO with an initial pricing range of $28 - $31 / share. NTM revenue multiple for a business growing >40% (at significant scale) that is operating at roughly breakeven. The table below lays out a few stats at different share prices. NTM revenue multiple.

Cloud 141

Cloud Scale Subscription Payment Features 141

User Pilot

OCTOBER 31, 2023

Pricing page best practices are particularly important since complicated pricing drives away leads that would otherwise contact sales. In this guide, we’re going to go over 13 best practices for designing a pricing page that converts! Mailchimp has a comparison table on its pricing page to help visitors compare plans.

Pricing 95

Pricing Scale SaaS Payments Payments 95

Chart Mogul

JUNE 1, 2023

So if you are keeping a close eye on your retention metrics this year, you’re not alone. Retention is one of the most important metrics when building a successful SaaS business. So if you are keeping a close eye on your retention metrics this year, you’re not alone. faster than their peers in 2022.

Retention 90

Retention Metrics Benchmarks SaaS 90

SaaStr

MARCH 7, 2023

PST, to unveil the data behind effective scaling. What are companies doing today to scale efficiently? This is why there’s no one-size-fits-all advice for scaling efficiently because every company is different. It was a tough growth environment, but it feels like it’s changing in 2023. 80% of companies are slowing hiring.

Outsourcing Services 164

Outsourcing Services Scaling Venture Capital Forecasting 164

SaaStr

APRIL 26, 2023

Self-serve products can and should be quite profitable at scale. Most of the website / presence growth came from price increases, which saw limited churn as a result. Churn was modest from their price increase, leading to material growth. A tough metric. And subscriber growth of only 3%. 5 Interesting Learnings: #1.

Scale 219

Scale SMB Churn Pricing 219

Kellblog

MAY 19, 2021

.” — Me responding to Ray calling me the Yoda of SaaS metrics. Just a quick post to highlight my recent appearance on the Metrics That Measure Up podcast, hosted by Ray Rike , founder and CEO of RevOps^2 , a firm focused on SaaS metrics and benchmarking. How metrics vary with scale. Rangaswami.

Metrics 88

Metrics Scale Benchmarks Acquisition 88

SaaStr

NOVEMBER 17, 2023

So one thing that has exploded in SaaS in the past decade is the role of Private Equity buying both public SaaS companies (to take them private, “fix” some metrics, and IPO or sell them again), and generally later-stage private SaaS companies. The prices would be lower today for the latter two I suspect. What did he find?

AWS 239

AWS SaaS Pricing Acquisition 239

SaaStr

NOVEMBER 8, 2021

Example Referenceable Slide + Full Deck : Mark Roberge On The Science of Scaling. So when building out your forecast, do the math and work backwards to the top of funnel metrics you need under this 20-20-20 framework. #2 The favorable consumption-based pricing metrics on this Battery slide speak for themselves.

Scale 297

Scale Cloud Forecasting Pricing 297

SaaStr

JANUARY 11, 2023

And while it’s stock price is down from its 2021 peaks, it’s still up 2x since its 2020 IPO. Profitable and capital-efficient is back in fashion: (Still, I’d argue it should be worth much more with these metrics, especially given that it has $212m in cash on its balance sheet). Billion Market Cap.

Scale 329

Scale Pricing Scaling Enterprise 329

OpenView Labs

JANUARY 19, 2021

A few years back, we launched a tool for SaaS companies to assess their pricing maturity and get advice on how to take their pricing to the next level. There’s still untapped opportunity to improve pricing. Our pricing calculator graded companies on a scale from 0 to 100 based on their pricing capabilities.

Pricing 115

Pricing SaaS Sales Hiring Scale 115

SaaStr

DECEMBER 29, 2023

In part two we head into IPO waters, how to incorporate AI into your products, the best way to drive employee performance, pricing models, and much more. Q: As you scale, how metrics-oriented should the company be? Some of his team are more metrics-oriented while others aren’t. Fire anyone that isn’t metrics-oriented.

Scale 221

Scale Sales Hiring Customer Success AI 221

Tom Tunguz

AUGUST 16, 2023

On the other hand, enough uncertainty permeates the market to depress prices. Public software companies’ share prices have fallen 10% on average in the last 30 days dotted with positive notes like the stabilization cloud growth rates for Microsoft & Google. The fundraising market, while active, isn’t fully thawed.

Startup 182

Startup Scale Strategy Forecasting 182

User Pilot

JUNE 2, 2023

Product adoption metrics tell you how well your platform is performing. In this article, we dived into 13 important adoption metrics to measure. 13 Key product adoption metrics and why they matter You regularly need to track several metrics to get a holistic understanding of how users are interacting with and adopting your platform.

Metrics 93

Metrics Customer Lifetime Value Churn Onboarding 93

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. Growth Stage – Scaling the Business, and .

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

SaaStr

JULY 13, 2023

Even today, most SaaS VCs would have trouble believing a $2k ACV product like Monday could truly scale. But scale it has. #4. NRR is the NorthStar metric in SaaS, but we all agreed it can be gamed, to some extent. Price raises can increase NRR, without adding value. Ultimately, at scale, everything is NRR.

SMB 176

SMB Scaling Metrics B2B 176

Clouded Judgement

APRIL 5, 2024

.” For startups, their valuation follows an arc from pure hype based valuations (all on potential) in the earliest days when you’re just a team and and idea, to pure fundamental based valuations in the public markets when you’re given a valuation multiple against a financial metric like revenue or free cash flow.

Cloud 161

Cloud Scale Pricing Revenue 161

OpenView Labs

JANUARY 13, 2022

Welcome to the third edition of the Pricing Transformations series. Pricing Transformations in 2020. Pricing Transformations in 2021. Product-lead growth continues to be one of the best ways to rapidly scale a software company, and best practices are increasingly shared and understood. Take carbon pricing.

Pricing 82

Pricing Payment Services SaaS Payments Payment Solutions 82

SaaStr

SEPTEMBER 29, 2022

As consumer tech growth teams move through this adoption funnel, they evolve their north star metric. This evolution can be described in four stages—each stage with a goal measured by a specific metric. Cost per quality user is the north star metric here. Mistake #2: Scaling sales team disproportionately to growth funnel.

Technical Review 233

Technical Review Technical Advisors Scale Compensation 233

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177