Vatsal Shah’s Post

The single reason why so many SaaS companies struggle. The addiction to shiny objects and instant gratification. New customer acquisition is to get the foot into the door. Sustainable growth and profit come from existing customers. That's how the SaaS business model works. It does not change because you wish it would. #saas #customersuccess #customervalueledgrowth

The single reason why so many SaaS companies struggle. The addiction to shiny objects and instant gratification. New customer acquisition is to get the foot into the door. Sustainable growth and profit come from existing customers. That's how the SaaS business model works. It does not change because you wish it would. #saas #customersuccess #customervalueledgrowth

💡 What key metrics and KPIs should SaaS companies focus on in their RevOps function? In this insightful discussion, Zachary Lukasiewicz emphasizes two crucial metrics for SaaS companies: 1️⃣ MRR (Monthly Recurring Revenue) - The cornerstone metric for tracking subscription revenue. 2️⃣ Usage Metrics - As seen with companies like Intercom and HubSpot, understanding and tracking usage can lead to substantial growth by maximizing customer returns. Don't miss the full video for a deeper dive into these metrics. Watch it via the link in the comments! #SaaS #RevOps #Metrics #MRR #UsageMetrics #Growth

Is your revenue model holding back your SaaS business? Discover how the right strategies can drive growth and stability. 📈 In this guide, we explored the essential differences between revenue modeling for subscription-based businesses and traditional non-subscription models and how these critical distinctions can transform your financial planning and enhance predictability. Uncover strategies on managing deferred revenue effectively, understand the implications of different billing schedules, and learn how to adapt to customer needs with flexible pricing tiers. 💡 Whether you're fine-tuning your existing model or planning a major overhaul, understanding these key concepts will position your company for stronger, more predictable growth. 📖 Explore our complete guide to SaaS Revenue Modeling here: https://lnkd.in/gm5PxEe7 #SaaS #B2BSaaS #RevenueModeling #PricingModels #SubscriptionModels #SaaSGrowth

SaaS benchmarks are essential reference points for any SaaS business wanting to grow and succeed. By aligning your goals with these benchmarks, you can optimise your strategies, and drive growth and profitability. But figuring out the right benchmarks to use can be challenging... Luckily, we've done the homework for you 🎓 🤯 We've put together the ultimate list of SaaS benchmark resources to help you set better goals and achieve greater outcomes. Whether you're focused on revenue and growth, customer acquisition, sales, customer service, or marketing, this list has everything you need... 👀 Check it out (Link in comments 🔗 👇 ) #SaaS #GoalSetting #BusinessGrowth #PerformanceMetrics #Benchmarking

The average #Onboarding #Checklist Completion rate in #SaaS is 19.2%. For #Fintech - it’s 24.5%! Can you beat them? Read our SaaS Product Metrics Benchmarks Report and learn the benchmarks for your industry + how to improve your key product metrics: https://lnkd.in/eqQdDjsg

Dan Balcauski puts it succinctly — “Value-based pricing is the North Star that every SaaS business should strive for, although like the North Star, it’s a destination you can never fully reach.” Under a value-based pricing model, your customers only pay for the value your product provides and the benefits they get from using it. While the inherent value of the product has an incremental and ongoing ROI, your buyers will gladly continue to pay this price. By virtue of its own nature, it does take time to fully nail value-based pricing, but it is certainly worth the time and effort long-term. To discuss value-based pricing more in detail, we are hosting Dan tomorrow, the founder and CPO of Product Tranquility on our next webinar. Over the last 15 years, Dan has managed multiple products throughout the product life-cycle — from new concept incubation, product launch, product maintenance, platform transitions, and end of life. Saurabh Agrawal, our Cofounder and CPTO, will moderate the webinar. In the past, Saurabh had built in-house billing, with hands-on experience on various different pricing models. In the webinar, we will touch upon – 1. The true meaning of ‘value’ and how to effectively measure it within the context of your SaaS business. 2. Developing expertise in identifying key value metrics, pricing metrics, and calculating customer willingness-to-pay for your products. 3. Making informed pricing decisions and evolving your pricing strategies as your SaaS matures and grows over time. See you there! Find the link to register for the webinar in the comments below. #SaaSPricing #PricingStrategy #Webinar #SaaS #CFO #Finance

Hello Readers In my previous post, I shared a list of key SaaS metrics for SaaS CEO or CFO to track in their company (Recap: https://shorturl.at/ghjoH). Now, I am going to explain each metric in detail starting with Annual Recurring Revenue (ARR). Meaning: ARR is a helpful tool for assessing how well your subscription-based business is doing. It is the annual contract value of all your clients subscription considering, new contracts, upgrades, churns and downgrades. Its not the same as the top-line item of a Company's P&L statement. Rather, it refers to the annualized revenue that a Company expects to earn on a recurring basis at a given point. How to calculate: ARR = Monthly recurring revenue (MRR) * 12. MRR = Monthly subscription fee of all your existing clients + Monthly value of new contracts + Monthly value of expansion - Monthly value of lost contracts - Monthly value of contracts downgrades in a month. Uses of ARR: Since ARR is the revenue that is expected to repeat, it enables measurement of company's growth and forecasting revenue. Following are some of its use cases: - A tool to value a business by using a multiplier - Benchmarking with similar businesses - Insights into customer retention & loyalty In simple words, higher the ARR, the more successful a company is. Limitations: ARR is a handy tool for assessing the growth of a business model that relies on recurring revenue. Keep reading for quick learning on SaaS metrics!! #Saas #saasmetrics #saascommunity #SaasAccountant #ARR

If you have no clue how your SaaS metrics compare to the industry standard, stop. Remove: -Guesswork -Irrelevant comparisons -Vanity metrics -Outdated data Instead: ↳ Use reliable benchmarks ↳ Focus on relevant KPIs ↳ Compare against similar companies ↳ Update your data regularly ↳ Simplify your analysis Be informed with your metrics. We've analyzed 6 Product Metrics from 547 SaaS companies to get the latest industry benchmarks. Curious to see how you stack up? If you want our SaaS benchmarks report with results from 547 companies across 6 different industries, like this post & comment 'saas' below.

Learning Business Growth: The Question 44 Out of 45 SAAS Executives Couldn't Answer This question holds the key to potentially doubling your business, a secret often used by PE companies to 3x companies in just 3 years. 🔍 The Question: What's the average deal size of the top 20% of your customers? 🔧 How to Answer: Export your revenue data for the last 12 months into a csv. Compare the average contract value of the top 20% with your overall average. 💡 How to Execute: Allocate at least 50% of your time, energy, and resources to the lead flow and sales channels that those top 20% deals originated from. 📈 The Results I've Seen: Deal sizes doubling to quintupling year over year A whopping 100x increase in deal size for your largest customers Quicker and more successful conversions, reducing time to close. It's a simple yet powerful lever to pull for boosting revenue. #BusinessGrowth #SaaS #RevenueStrategy #SalesOptimization #CustomerInsights #PECompanies #RevenueGrowth #DealSize #weblozy