A SaaS company’s culture is a key determinant of its success. To grow a SaaS company really quickly, you need to create a product that customers can’t live without (the “Product/Market Fit”), delight your customers and ensure their success. This requires a superior company culture through Read More
Customers are shifting from purchase software to SaaS subscriptions. They want the flexibility of only spending money for what they need, when they need it, with the advantages of having the most current offerings. They don’t want to be locked into the “stuff they Read More
SaaS companies are growing rapidly due to customer demand for cloud-based solutions. For public SaaS companies, the median growth is 28% while the median loss is 4.5% (Software Equity Group). A survey of private SaaS companies by Pacific Crest Securities reported a median 36% revenue Read More
Growth is a good thing. High growth SaaS companies have higher company valuations, have a better market perception, attract better employees, and can dominate their market. However, SaaS companies incur Sales & Marketing, “Revenue Acquisition Costs” before those costs are recovered by the profits from subscription revenue. Read More
High-growth SaaS companies are often unprofitable, yet financial institutions value them highly. The median net income for Public SaaS companies is negative 4.5%. Yet, despite these losses, the Price to Enterprise Value ratio for SaaS companies is 8.0x compared with 3.2x for Software companies, according Read More
Originally published on SandHill.com. SaaS fundamentally changes the products, services and relationships between SaaS vendors and their customers. Likewise, SaaS changes the role and value added by the SaaS channel partner. Channel partners will need to work differently and more strategically than in the past. Read More
The majority of SaaS vendors will provide both a desktop and mobile application. While HTML5 is rapidly become de rigor on desktop, its use on mobile platforms is situational based on the application requirements. According to Flurry (April 2013), only 20% of the activity on Read More
Customer Lifetime Value or CLV (aka CLTV or LTV) is an essential SaaS metric for quantifying the present predicted value of a revenue stream from a customer. Understanding the Customer Lifetime Value is crucial for understanding how much is prudent to spending on customer acquisition. Read More
The SaaS subscription business model trades high upfront (license) payments for a greater Customer Lifetime Value. This increases the SaaS vendors overall value resulting company valuations over twice those of Licensed Software companies of the same revenue (Software Equity Group 2013). The transition from Licensed Software Read More
SaaS success requires acquiring new customers, growing their account revenue, and retaining these customers – nailing these three areas leads to strong growth in a SaaS company’s reoccurring revenue. The tools provided by Marketing Automation and Customer Engagement Analytics software are essential to driving the Read More
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