SaaStr

SEPTEMBER 29, 2023

One of the open secrets behind a lot of great SaaS companies is going multi-product. There are advantages beyond higher pricing, with higher pricing being the smallest advantage. With the second product, Lattice had a higher price point per customer, which everyone expects, but it doesn’t always happen.

Scale 223

Scale Scaling Startup Sales Hiring 223

SaaStr

JULY 24, 2023

So price increases have been the name of the game in SaaS for the past 12 months, in many (not all) cases to help make up for slowing growth: Zendesk up 16% Salesforce up 9% Google Workspace up 20% HubSpot up 12% Webflow up 16% Shopify up 33% Slack up 10% And some of them like Slack and Salesforce hadn’t raised list prices in quite some time.

Pricing 203

Pricing Software Review Churn SaaS 203

SaaStr

JULY 10, 2021

Q: Dear SaaStr: Should I Publish My Pricing? Transparent pricing has many advantages: It makes the sales process simpler. And it places you app in pricing context with other apps. Do pricing right, and a number of customers who aren’t a great fit qualify themselves out. If you aren’t sure — then yes.

Scale 274

Scale Pricing Enterprise Scaling 274

FastSpring

APRIL 11, 2022

What’s the ideal number of subscription tiers for a SaaS company? That’s not what we found when we studied the pricing plans of 50 best-in-class SaaS companies for our 2022 pricing pages report. From Zero to 23 Plans, Best-in-Class SaaS Companies Customize Their Subscription Options.

SaaS Payments 139

SaaS Payments Pricing Strategy Scale 139

SaaStr

AUGUST 27, 2020

Q: Will SaaS prices drop due to competition from developing countries? I can’t think of too many examples at scale, but for a long time, Zoho took advantage of its low cost basis in India and did just that. Most SaaS products start out cheap. Most SaaS products start out cheap. There are so, so many SaaS apps.

Scale 171

Scale Pricing SaaS Branding 171

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 135

Pricing Payment Solutions Payment Services SaaS Payments 135

SaaStr

FEBRUARY 1, 2022

We’ve been doing the 5 Interesting Learnings at SaaStr for quite a while, looking at many of the public SaaS leaders and pulling out the top learnings for founders and SaaS execs. And that challenge some of your assumptions on how to scale. And that challenge some of your assumptions on how to scale.

Scale 341

Scale SMB SaaS Scaling 341

How To Buy Saas

MARCH 7, 2024

One of the main elements you should take into account whilst choosing the Software as a Service (SaaS) solution that makes the best selection for your business is cost which is the most critical statistic for you. The tiered price system can be applicable either to separate feature sets or to levels of service for different price ranges.

Pricing 52

Pricing SaaS Payments Payment Solutions Payment Methods 52

Tom Tunguz

MARCH 16, 2022

Is charging by consumption (usage-based pricing) a superior model for a business? Often, the effort probably isn’t worth it, unless the company’s stated strategy is to differentiate on price structure. What should my unit of pricing be? The unit of pricing is the crux to unlocking that puzzle. AppDynamics.

Pricing 257

Pricing Scale Banking Startup 257

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.

AWS 237

AWS SaaS Pricing Acquisition 237

SaaStr

NOVEMBER 28, 2022

These two departments are a SaaS company’s most important; without their alignment, there is no growth or scale. Prakash Raina, Co-Founder of Subskribe, and Leslie Hui, VP of Accounting Operations and Finance Transformation at Okta, break down the secrets to unifying SaaS teams, processes, and systems. Era 2, SaaS 2.0:

Scale 196

Scale Finance Sales Hiring Scaling 196

SaaStr

NOVEMBER 8, 2022

You know what’s back in fashion today in SaaS? And that’s a lot rarer in SaaS. But so many SaaS leaders aren’t really profitable at $1B ARR even, Why not? And it’s not just public SaaS companies that are often struggling to get profitable. I’m an investor in maybe 30 SaaS startups. So is SaaS cursed?

Scale 275

Scale SaaS Banking AWS 275

Baremetrics

AUGUST 8, 2021

For most SaaS businesses, customer acquisition is one of the most challenging stages of growth. 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.

Pricing 111

Pricing SaaS Scale Churn 111

SaaStr

JANUARY 24, 2024

Mark Roberge , SaaStr fan-favorite and Co-Founder and Managing Director of Stage 2 Capital brought together some of the top CROs in SaaS during the SaaStr Annual to share some of their greatest learnings and pivotal moments leading some of the Cloud 100 SaaS companies. Attune sellers for one or the other. How do you define your ICP?

Scale 220

Scale Sales Hiring Scaling Revenue 220

SaaStr

AUGUST 30, 2020

For most of us, as we build up our confidence, the best initial pricing strategy to start is the Low End of Normal. There is no commodity pricing in SaaS. Price at 80% of that, to start. If that looks too low, raise the price a smidge. Other strategies include: Identical Pricing. Yes, pricing matters.

Pricing 256

Pricing Scale Enterprise Branding 256

USIO

JUNE 3, 2024

In the dynamic world of Software as a Service (SaaS), staying ahead of the curve means continuously evolving and integrating new functionalities that enhance user experience and streamline business operations. As a SaaS CEO, understanding and implementing integrated payments can be a game-changer for your business.

Payments 130

Payments Payment Solutions Payment Services SaaS Payments 130

SaaStr

APRIL 17, 2024

But now a second SaaS security leader has filed to IPO, Rubrik. Is this the new bar to IPO in SaaS? New Customers Still Growing 22% at Scale. For me, Net New Customer Count has become the metric I obsess the most about at scale. For me, Net New Customer Count has become the metric I obsess the most about at scale.

Scale 219

Scale Pricing Scaling Cloud 219

SaaStr

MAY 27, 2022

They aren’t scientific, but they do poll out 25,000+ LinkedIn followers, who consist mainly of SaaS executives. Notwithstanding the drama in the public markets, most SaaS companies and startups are growing faster than ever. #6. 59% of you have raised prices this year. So there’s something to them. At least. #23.

Sales Hiring 279

Sales Hiring Pricing Scale Interviewing 279

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 200

Pricing Scale Retention AI 200

SaaStr

OCTOBER 25, 2021

Q: What billing or pricing tactic have you found in the end just wasn’t worth it? “Unless your product has a huge TAM to cast your net in, no-touch onboarding, and an obvious first “wow” moment you’re trying to reach, free trials and/or freemium pricing does not work well.” Jason, ed. : Jason, ed. :

Pricing 277

Pricing Scale Enterprise Onboarding 277

Tom Tunguz

AUGUST 28, 2021

Should you price your SaaS per seat or per use? The first thing to state is that massive companies have been built using both pricing structures: Salesforce and Adobe bill per seat while Snowflake and Twilio charge per use. When to use per seat pricing. Would they switch if the pricing weren’t predictable?

Pricing 266

Pricing Strategy Startup Scale 266

SaaStr

OCTOBER 17, 2023

PST — Former VP of Customer Success and current founder and Managing Partner at Success Venture Partners, John Gleeson, shares his lessons learned scaling customer success from $1M to $300M in ARR. In SaaS, you have three ways to make that curve stand out. An ability to scale through a couple of stages of growth.

Scale 159

Scale Sales Hiring Customer Success Scaling 159

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. Now we’ve had more than 2,200 SaaS companies participate. There’s still untapped opportunity to improve pricing. In the early days, most companies are under-priced.

Pricing 115

Pricing SaaS Sales Hiring Scale 115

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

SaaStr

MAY 15, 2024

So with public SaaS companies continuing to grow, but revenue multiples often at relative lows, it can make sense in some cases to “go private”, invest in more growth for a few years, and try to IPO again down the road. Qualtrics did it, nCino just did it, and the latest is Squarespace. 5 Interesting Learnings: #1.

Scaling 227

Scaling Subscription Payment Features Pricing 227

User Pilot

JULY 4, 2023

Read on to discover how to cross the chasm and scale your technology company. Getting the right positioning, messaging, key features, and pricing is vital before entering the mainstream market. Use loyalty programs and rewards to encourage users to leave reviews, increasing your SaaS’s word-of-mouth promotion.

Scale 77

Scale Scaling Technical Review SaaS 77

SaaStr

JANUARY 24, 2023

As SaaS founders are looking to scale and raise funding, it can be confusing and stressful to navigate in the uncertain market of the past few years. In the SaaS space, revenue growth was the king of metrics for many years, but that has changed. Stay mindful of efficiency metrics as you scale, and be careful with spending.

Scale 218

Scale Scaling Software Review Operational efficiency. 218

SaaStr

JANUARY 4, 2024

In 2022, revenue growth held up for many leaders, but share prices and multiples cratered. It was mixed actually, even if startups didn’t seem to get a breather, it wasn’t so bad for most public SaaS leaders. And yet … it wasn’t all bad, for the bigger guys: The median SaaS and Cloud stock was up 41% in 2023!

Startup 171

Startup SaaS AI Pricing 171

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 159

Scale Sales Hiring Scaling Banking 159

SaaStr

MARCH 11, 2022

Multiples are too low today, given that the best SaaS and Cloud companies not only are growing faster than ever, but are even accelerating at scale. Multiples are too low today, given that the best SaaS and Cloud companies not only are growing faster than ever, but are even accelerating at scale. than at $1B in ARR.

Scale 256

Scale SaaS Cloud Pricing 256

SaaStr

JANUARY 1, 2024

So one thing that’s changed radically in SaaS over the past few years if everyone has realized to truly scale, you need to be multi-product. But net net, the average public SaaS compay has 35,000 customers. An add-on can drive up the ACV of your customer, and that’s important to scale.

Scale 283

Scale Scaling B2B Enterprise 283

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

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

FEBRUARY 15, 2022

In SaaS, there are a lot of great “rules” that do make sense overall but can be confusing or borderline misleading at times. But maybe not while you are scaling, you can often afford to invest more if you have funding. This is pretty much where most of us end up at, at scale. More on that below.

Scale 243

Scale Customer Success Sales Hiring Scaling 243

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. A data-driven framework for scaling. Mark’s latest ebook, The Science of Scaling , outlines a precise framework for success. Next comes go-to-market fit.

Scale 226

Scale Scaling Sales Recruiting Sales Hiring 226

Zuora

MAY 1, 2024

Consumption-based pricing models are rapidly transforming how businesses approach monetization, particularly in high-tech and SaaS sectors. These models, which charge customers based on their actual usage, help align costs with the value delivered and they offer flexibility to scale services according to user needs.

Pricing 52

Pricing Scale Scaling SaaS 52

SaaStr

MARCH 27, 2024

So we’ve probably covered HubSpot more than any other SaaS and Cloud leader on this 5 Interesting Learnings series, but there’s a good reason for it: First, HubSpot is a lot like most of us. So many SaaS companies just run out of new customers by $100m ARR or so. It sells sales, marketing, support and more tools.

Scale 233

Scale Cloud Scaling Pricing 233