This week’s roundup includes a thorough guide to building a channel sales strategy, tips on bootstrapping your SaaS company, aligning your SDR and sales teams and more!
Let’s get started…
For those of you who don’t know, bootstrapping is a subject that is very near to our hearts here at SaaSX, so naturally this article caught our eye. ABEL Finance founder Rob te Braake shares a fantastic guide to the financial complexities of bootstrapping your SaaS company, and offers some great advice on overcoming the hurdles that commonly arise along the way.
When addressing issues relating to churn, many SaaS founders have this mindset: regardless of what I do, I’ll never be able to completely eliminate churn. So why bother? I have other problems to focus on.– Rob te Braake
That said, this isn’t the right approach to take. While it’s true that you can never reduce churn to zero, it’s still important to minimize churn as much as possible.
SaaS content marketer Steph Knapp returns to the ChartMogul blog as a guest writer, discussing how you can identify and use weaknesses to optimize your overall onboarding and customer engagement strategy. Steph is a brilliant writer and we’ve included some of her articles in our roundups in the past. Her latest offering is right on par with what we’ve come to expect from her writing – concise, actionable, and deeply beneficial.
Churn is calculated after a user has left your service, but what if you could use it for a proactive measures instead of reactive tactics? Instead of looking at your churn rate as a whole and shooting in the dark in an attempt to lower it, you can use metrics to upgrade your onboarding and engagement efforts in an organized way. Let’s explore.– Steph Knapp
Acquiring good-fit customers is a crucial part of maintaining great customer success. In his latest article, Kilterly‘s Chris Arringdale digs into the differences between good-fit customers, bad-fit customers and stretch customers. Arringdale explains the positive and negative effects each of these customers will have on your SaaS business, and answers the question “is every customer a good customer?”. Spoiler: the answer is no!
Knowingly acquiring bad-fit customers significantly hurts an organization’s customer success efforts. Your relationships with these customers are doomed from the start and will never let your desired outcome be achieved because they don’t have success potential at that time.– Chris Arringdale
In one of our favorite Openview articles to date, Liz Cain tackles the subject of channel sales for SaaS companies and leaves no stone unturned in the process. To say this article is thorough would be in understatement. If you’re not familiar, channel sales refers to the process of partnering with third parties to get your product into the end user’s hands. Cain covers every aspect of what that means for a SaaS company, when it works, how to build yours and much more. We highly recommend giving this article a quick read!
While there are many benefits to incorporating a channel element into your go-to-market strategy, it’s not the perfect fit for all companies. In addition to considering how channel marketing aligns with certain attributes of your organization, it’s also important to consider timing. There is definitely a “right moment” at which to add channel sales into the mix.– Liz Cain
Bigfoot Capital’s Tim Sprinkle takes a look at SaaS churn metrics, and discusses the three ways these numbers are often misunderstood. It should go without saying that tracking churn is a somewhat-useless measure if you don’t fully understand what the numbers are telling you. The idea that you could be overlooking something highly detrimental to your SaaS company even when it’s right in front of you is what motivated Sprinkle to write this piece – and we’re so glad he did! If you think there may be some flaws in your churn-tracking process, this article is for you.
If you’re growing faster and faster your churn will show improvement when it’s really not improving.– Tim Sprinkle
The pricing power of 9 is the marketing tactic of ending your prices in a 9 rather than a 0 or a 5. It’s a tactic commonly used in retail products and environments, and in this short video, ProfitWell‘s Neel Desai examines how effective this approach is when pricing your SaaS product.
What you’ll notice in the data is that conversion tends to be 15 to 20% higher for lower ARPU products, those that are selling for less than $200 per month in particular. As you get over that dollar amount this conversion power starts to diminish and basically trends to 0 with some natural variation, especially when you get into products over five thousand dollars per month.– Neel Desai
Costello’s Teresa Weirich sat down with our co-founder Anna Talerico before her appearance at Salesloft‘s Rainmaker conference to discuss how to align your SDR and sales teams for success. In this interview, Anna shares many of the tactics she has used to align these teams at various companies over the years, the importance of putting yourself in your buyer’s shoes, and explains how to perfect the SDR to AE handoff.
Huge thanks to the great people at Costello for taking the time!
For both sides of a handoff, it’s about reading between the lines. SDRs should inherently know how to tell the story of an account that hits the right points, while sales reps should listen to what SDRs are saying – and not saying – about the account. SDRs and sales reps have to listen to each other, ask great questions and tell good buyer stories. That makes for an elegant handoff.– Anna Talerico
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!