This week’s roundup includes great tips for configuring your SaaS company for customer retention, boosting paid advertising ROI, building a SaaS company system of record and more! Let’s get started…
First up, Medium writer Adhya Sethuraman discusses the importance of configuring your SaaS company for customer retention, and teaches you how to do it right. Over the course of this 8-minute read, Sethuraman explains why customer retention is an important aspect of a SaaS company, and how to measure customer churn and revenue churn by doing a cohort analysis. She closes the article with four retention strategies to help lower your attrition rates, and makes sure to leave readers with quite a bit to think about when it comes to the importance of increasing retention, and how to properly go about it.
Every point of contact with the customer is an opportunity for innovation and improvisation. Try and tweak these interaction points because even a small increase in your retention rate has a massive impact on the company in terms of the revenue they bring along.– Adhya Sethuraman
We stumbled upon the Cobloom blog at the beginning of last week and fell in love with their work. Much of their content lands a little left of center, shedding light on some of the lesser-known aspects of building, running and growing a SaaS company. Their latest piece is a great example of this effort, delving into four pay-per-click (PPC) secrets for boosting your paid advertising ROI. Cobloom’s Ryan Law takes readers on a detailed journey through these four steps, making it easy to understand the flaws in their current approach to paid advertising and to make the necessary improvements.
Paid advertising is one of the most powerful tools in a SaaS company’s marketing arsenal, especially when you’re looking to generate right-fit leads in a relatively small window of time.– Ryan Law
Blissfully‘s latest blog post acts as something of a cautionary tale for SaaS companies lacking an effective system of record, or worse – who may have no system of record at all. For those who may not know, a system of record is the authoritative data source for a given type of information, and the software that maintains this data becomes the organizational foundation for certain business processes. While many options exist for systems of record for single-lane disciplines like sales, HR and finance, SaaS is one area of business operations that many organizations have not yet systematized. The anonymous author behind this article explains why having a strong system of record is important while clearly outlining the risks SaaS companies may face without one. Does your SaaS company have a system of record? If not, this article is a great place to start the process of putting yours together.
The consequences of ignoring systems thinking in SaaS management could be severe. Recent research from Blissfully shows that the average 200-500 person company uses 123 apps, and has more than 2,700 app-to-people relationships. These relationships could span from billing owners, to admins, to day-to-day users. For example, if someone with admin status leaves an organization and isn’t properly offboarded from an app, the organization could risk critical data loss and reputational damages.– Blissfully
It’s been said many times and many ways: Customer Success (CS) is the lifeblood of a SaaS company. Or rather, CS is what keeps the blood flowing through a SaaS company. So with this in mind, it should go without saying that maintaining a good grasp on CS and where it’s going is extremely important when building and growing your SaaS business. This is where Medium writer Sumeru Chatterjee comes in. Last week, Chatterjee attended a panel with Index Ventures‘ Byran Offutt and Redpoint Ventures‘ Travis Bryant at a WeWork in beautiful downtown San Francisco. The session was moderated by John Gleeson of KeepTruckin and discussed the deeper aspects of Customer Success, where it’s going, where’s it’s been, and what this all means for the future of SaaS. Chatterjee collected what he considers to be the seven most important takeaways from the Q&A portion of this CS MeetUp, and does a brilliant job of summarizing the highlights into a truly beneficial 9-minute read.
Ultimately, VCs care about Net Revenue growth, which combines attacking new clients and segments and defending (and expanding) existing revenue from current clients. If CS teams can show real ROI for the business using data, they will continue to flourish in the modern company landscape.– Sumeru Chatterjee
This is something that doesn’t get discussed enough, and Copper‘s Grace Lau has done the SaaS industry a service by surfacing this issue to its less-experienced marketers. In this presentation, Lau addresses the rising lack of accuracy within the field of SaaS marketing, with much of the content cluttering the SaaS world citing studies that were carried out improperly, citing biased studies or citing people who should not be cited at all. Lau points out that a “fact” isn’t always the truth, and calls for SaaS content marketers to implement common journalistic practices into their fact-checking process when collecting marketing data. Your company requires accuracy to succeed, and your audience deserves this accuracy. If you’re going to make big statements, back them up. And make sure your citations come from reputable sources. B2B SaaS marketers of all kinds should familiarize themselves with these basic journalistic practices and understand that these “small” details make a bigger difference than many may think.
Whether we like it or not, the line between content and journalism is blurring. It’s sometimes viewed as a bad thing, but I don’t think it should be; if we want to create trustworthy brands that are known for quality content, then we have to understand and be able to navigate basic things like fact-checking and accuracy in our writing. Because yes, while we’re not journalists, this improves the stuff we put out and helps us build trust with our audiences.– Grace Lau
Geoff Roberts of Outseta tackles an important revelation that has been slowly but surely sweeping the SaaS industry for a while now. What is it? The ever-increasing amount of data showing that a small team of “A” players will outperform a larger group of “B” players 9 times out of 10. As start-ups themselves are based on the notion of doing more with less, the implications of this data are hard to ignore. Roberts expounds on these implications at great length, explaining both why they are what they are, and how to enable your company to take advantage of the benefits.
You don’t need more people or more hours, you need fewer hours from better people.– Geoff Roberts
When should you start marketing your SaaS venture? Who should do your startup marketing? When should you hire a dedicated CMO? These questions loom heavy in the minds of young SaaS founders, and the internet can be nothing more than a source of confusion when seeking answers to them. Thankfully Xander Marketing‘s Alex Cohen has put together a fantastically insightful piece on this subject. Though quite short, Cohen’s article is concise and jam-packed with the answers so many new founders are searching for in regards to the questions above. If you feel you’ve hit a fork in the road with growing your SaaS marketing department, this article is for you.
Money is usually an issue for startups, and clearly, one of the reasons for hiring contract, part time or freelance CMOs, or taking the expertise as part of an outsourced agency package is that it costs less than a full-time hire. Should you find yourself in the position where you have the budget for a permanent hire, its often a good move to take the opportunity to make the hiring decision for a full-time permanent CMO.– Alex Cohen
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!