This week’s SaaS roundup features the ultimate guide to SaaS pricing models, tips for increasing SaaS sales with live support, a founder’s guide to SaaS accounting software and much more! Let’s get started…
First up, Cobloom‘s Ryan Law jumps head-first into the complex galaxy of SaaS pricing models, aiming to demystify the various tactics and strategies involved with each. Though attempting such a thing would be a tall order for just about anyone, Law does a fantastic job of breaking SaaS pricing models down into 7 simple categories, detailing the pros, cons and subtleties of each. But is it the “ultimate” guide to SaaS pricing models? We’re not sure that such a thing could really exist, but this sure comes close!
Few things impact revenue as much as your pricing. And yet, the average SaaS startup spends just six hours on their pricing strategy. That’s not six hours a week, or six hours a month – six hours, ever, to define, test and optimise everything.– Ryan Law
This article is simply the transcription of an interview between DialSource‘s Andrew Setness and OPEXEngine‘s own Lauren Kelley. The interview was recorded for OPEXEngine’s monthly podcast, which can be found embedded in the article as well. Regardless of whether you’d prefer to read or listen, we do recommend setting aside some time to absorb this fantastic interview. Setness is a brilliant mind, articulate, experienced and well-versed in many aspects of running a SaAS company. In this interview, Setness and Kelley talk about the processes, metrics and systems that change as a company goes from a Series A, to B, to C and beyond – and how to prepare, adapt and grow accordingly.
Having monthly forecasts that you are updating and being able to continually update is very important. It’s more about being agile than it is about having some three year forecast that’s going to be old within a month or two.– Andrew Setness
Have you outgrown your SaaS accounting software? And if so, how do you figure out what new accounting software is right for you? If you’re asking yourself these questions, The SaaS CFO‘s Ben Murray is here to help. There are many reasons for outgrowing your current setup, and over the course of this 13-minute journey through the ins and outs of SaaS accounting software – Murray helps you troubleshoot what your reason is, and find a new solution that meets your current needs.
First, assess the state of your current accounting process. Do you need improved processes and/or technology? If you can’t rely on your financial statements to make decisions, it’s time to upgrade your technology and process.– Ben Murray
If there’s one article on this list that we recommend reading the most, it’s this one. Continuing his ongoing series of quarterly Mergers and Acquisitions (M&A) report, Blossom Street Ventures‘ Sammy Abdullah shares M&A data collected from a record breaking 277 M&A transactions in 2019’s first quarter. Though the research was originally done by Software Equity Group, Abdullah has done a fantastic job of organizing the data into charts and graphs and presenting the key highlights collected from the full report. Highly informative and insightful. This 4-minute read is well worth your time.
If you’re growing under 40% per year or even slower, strive for a 30%+ EBITDA margin. If you’re not profitable, growth needs to be well in excess of 40% to offset, or you’ve got to be able to make a case that you could be profitable if you wanted to be, but you’re re-investing cash in sales and marketing burning cash in order to spike growth.– Sammy Abdullah
SessionStack‘s Alexander Zlatkov takes a look at how live support can increase sales in SaaS, and how to measure the impact it has. Regardless of whether your SaaS is trial or freemium based, investing in live support could substantially boost your revenues. But Zlatkov doesn’t just expect you to take his word for it. Instead, he takes readers on a journey through just about every facet of live support’s benefits, explaining the numerous effects one by one and educating readers on how to properly implement live support into their SaaS companies.
In order to be more precise, the only thing you need to do is track every time a support agent starts a conversation with a freemium user.– Alexander Zlatkov
Afterwards, for each cohort of freemium users that have become paying ones, you can analyze how many of them have been contacted by the support agents.
Customers are a company’s biggest asset. Without customers, any company would fail. So what could be more important than retaining your customers longterm? Pretty much nothing. In this article, Kilterly‘s Chris Arringdale urges readers to take a fresh look at their retention strategies, suggesting that the ultimate retention strategy may be simpler than you think. What is the strategy? As the title suggests, streamlining your cost-effectiveness is the end goal, but Arringdale doesn’t leave things so vague. Rather, he takes you through this process one step at a time, showing you how to truly perfect a strategy you can really believe in. Improve your customer retention strategy today!
The journey doesn’t end when the customer buys the product or signs on for service.– Chris Arringdale
Followers of our Twitter account may have seen this one already as we must have Tweeted it 2 or 3 times last week. But can you blame us? The information in this article is fantastic, and the article’s presentation is among the most articulate we’ve seen in a while. Blissfully‘s anonymous writer tears open the walls around the SaaS Graph, revealing the dimensions within and exposing the hidden relationships transforming IT management. That’s about as detailed as we can be in summarizing this piece. Make sure you check it out for yourself!
The SaaS Graph spans five key dimensions, all of which represent new challenges to stakeholders across the organization. While SaaS has made it much easier for anyone to purchase and deploy new software across teams, these dimensions introduce new, potentially hidden problems and inefficiencies.– Blissfully
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!