Happy Monday! This week’s SaaS roundup includes great tips on reducing SaaS customer churn, tracking revenue recognition, properly implementing SaaS Chatbots and more! Let’s dive in…
While this may sound like “just another cautionary churn tale”, it’s actually much more. This is not Ben Cotton‘s first appearance on our weekly SaaS roundup series, and for good reason. Ben’s perspectives, tips and advice are always brilliant. In his latest blog post, he shares some highly educational statistics, charts and actionable strategies to reduce customer churn today.
Retention truly is the foundation of growth for software as a service (SaaS) companies, but oftentimes, it is overlooked and undervalued. This is always a huge mistake. High churn is a corollary of poor retention – but it can creep up unannounced, and rather than deal a single fatal blow, it causes death by a thousand small cuts.– Ben Cotton
Redpoint‘s Tomasz Tungaz likes to keep his articles short and sweet, but never skimps on the quality. If you had one marketing dollar to spend on your startup’s growth, would you spend it on acquiring a new customer or on expanding an existing customer? Tunguz advises you to spend that marketing dollar on new customer acquisition, and explains why.
Best in class companies typically achieve 120% negative net expansion. But in the early days, maximizing account value shouldn’t be the focus.– Tomasz Tunguz
Though it’s the harder path, spending that marketing dollar on new customer acquisition is the better way to build value for venture-backed startups.
Steve Eveleigh of Gripped published a great piece comparing freemium and free trial marketing approaches. In this article, Eveleigh outlines the pros and cons of these uniquely different options, and arms readers with the information needed to decide which is best for them.
Although it is critical for most SaaS businesses to keep their marketing and sales costs low, it is equally important to invest in visibility. One of the most cost-effective ways to do this is to invest in content marketing. Unlike paid forms of advertising, content marketing sticks around long after you paid for its creation — it’s evergreen. In fact, well-written content will continue to grow in value as it collects views, likes, shares and comments.– Steve Eveleigh
Whether you’re brand new to Chatbots or jaded from fruitless Chatbot implementation, this article will take you from A-Z on proper Chatbot implementation in under 5 minutes. And who better to explain Chatbots than Chatbots Magazine? If you didn’t know Chatbots could be so beneficial to your SaaS business, don’t stress – neither did we! Now you know.
By asking the right questions, your Chatbot can retrieve useful information that can help you define your audience and build your Customer Avatars — or at least have a better understanding of what are the essential characteristics of your audience.– Georgios Chasiotis
Zokri‘s Matt Humphreys shares the 5 most common reasons for failed software adoption, and offers 5 simple ways to get company-wide buy-in and adoption of that software. Not good enough? Humphreys also includes 7 tips for implementing those methods! His sage advice will have your customers and your team up and running in no time.
In the eyes of your teams, adopting new Tech means more work added to their busy schedule – hence why accepting new tools and software is often met with a frosty response. It would be like saying farewell to a trusted team member and have them replaced with a stranger who they haven’t met or don’t know anything about.– Matt Humphreys
Last but not least comes yet another brilliant offering from our friends at ChartMogul. Giving their ongoing SaaS Metrics Refresher series a booster shot with this study on revenue recognition, Ed Shelley adds a much-appreciated cornerstone to an already terrific series of articles. If you haven’t read Refreshers 1-6, you can find those here.
Revenue recognition is a critical piece of accounting for any business.– Ed Shelley
For a SaaS or subscription business, revenue recognition can be complex, mainly because of the service-oriented nature of the product. While your customers may pay you a lump sum upfront for a year’s worth of usage, you won’t be able to categorize that entire amount of cash as revenue right away.
That’s it for this week’s SaaS roundup! Thanks so much for reading, and we hope to see you here next Monday!