This week’s SaaS roundup features tips for accurate SaaS pricing, combatting churn, better understanding your customer’s needs and much more! Let’s get started…
Lola CEO Mike Volpe took to the Openview blog last week to speak on the topic of SaaS pricing. Admitting that pricing tends to be one of the most complex topics in all of SaaS, Volpe shoulders the weight of this brilliantly insightful list of SaaS pricing strategies beautifully. Though this article is a little too dense for any summary to do it justice, Volpe’s 3 steps are simple: Find a pricing structure that works with your business model, bring in a multi-dimensional element to help maximize revenue, and lastly – you must continuously assess what’s working and what’s not. Sounds simple, right?
You want to look at your customer’s experience and be able to define clearly how they can be more successful with and because of your product. Being able to convey that potential effectively and help your customer experience it first hand will give you all the conviction you need to charge a premium in even the most competitive market.– Mike Volpe
The “Elastic Billing” experts at Chargify published a fantastic guide to combatting churn at every stage the customer lifecycle. Penned by an anonymous guest writer, the article delves into even the most subtle aspects of SaaS customer churn, detailing each with a revealing series of charts and other data intended to help counter churn in all six stages of the customer lifecycle. We’ve seen similar churn guides in the past, but Chargify’s latest offering is a worthy addition to the ongoing battle against customer churn.
Churn is part and parcel of running a SaaS company. Some customers won’t get enough value out of your product. Some will switch to a competitor. Some will go out of business. It’s unfortunate, but it’s also inevitable.– Chargify
Beamer‘s Mariano Rodríguez thinks that the needs of the customer should be at the center of every SaaS company, and we couldn’t agree more! To outline his customer-centric vision more clearly, Rodríguez authored a fantastic guide to help SaaS companies understand their customers better. The folks at Beamer are widely known for their dedication to meeting every customer’s individual needs, so finding an article like this among their latest blog posts was no surprise. And while this article serves as something of a love letter to SaaS customers of all kinds, it also serves up a powerful dose of customer-centric strategies and concepts that can help improve your adoption and retention today!
Customer needs are what should drive the product planning and product marketing for long term growth.– Mariano Rodríguez
Sammy Abdullah of Blossom Street Ventures keeps his thoughts short and sweet, and his readers love that about him. At times his articles read more like news briefs or cheat sheets as opposed to the long and deeply personalized dramas sometimes found on Medium. This article is no exception, serving up the 12 most important “commandments” of customer success, and nothing more. Focused, enlightening, and enjoyable. We always look forward to Sammy’s posts!
The Customer Success Team is not the only group in charge of customer success. Preventing churn is everybody’s job.– Sammy Abdullah
Redpoint‘s Tomasz Tunguz opens his latest blog post with this statement: “When we published the results of the freemium survey earlier this year, we noticed respondents targeting the enterprise observed higher net dollar retention and lower churn than those startups targeting other segments. I wondered if we could observe any other patterns about enterprise businesses, so I produced this analysis of public companies with ACVs (annual contract values) of $100k or greater.”
With his mission clearly defined, Tunguz offers some of the most powerful data we’ve seem come across his blog in a while. Organized into five charts, the data presented here shows that the difference between enterprise companies and the rest of the public software population is smaller than many of us may have thought. Why is this important? Tunguz explains it best in his own words.
The only meaningful difference between enterprise companies and the rest of the public software population is a slightly lower gross margin – about a 10% decline – relative to others.– Tomasz Tunguz
ProfitWell‘s Patrick Campbell asks an important question, and offers an equally important answer. What is recurring billing, and who does it benefit? While most of us in SaaS understand that recurring billing is designed to benefit businesses and customers alike, Campbell suggests there’s a little more to it than that. If you’re like me, your click-bait alarm might go off when you first see a title like this. But I can assure you that Campbell has a real point to make, and he makes it beautifully.
Any product or service that a customer purchases on a regular basis can be a great candidate for recurring billing, from internet or cable bills to gym memberships and household consumables like cleaning supplies or pet food.– Patrick Campbell
Thanks so much for joining us for another SaaS roundup. We hope to see you here again next Monday!