Quote Info

We want you to look at pricing the same way you look at other business functions, because at the end of the day pricing is the greatest leverage that you have on your bottom line. �Empower your organization to be in tune with your customers and always be optimizing for profits. If you remember nothing else from this post – remember these few points.

  • Pricing is a constant process that is fueled by tons of customer data

  • A pricing committee is the strong grip of a hand that cranks your pricing lever

  • You should be evaluating every quarter and making sure that your personas are quantified

  • You should be making minor changes every three months, and major changes every six

  • Improve your product so that you can improve your pricing. 1% increases in price yield 11% increases in profit.

PriceIntelligently

More SaaS + Software Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

High-growth companies generate 60% fewer sales opportunities than low-growth companies

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

After $10M in ARR, the median growth rate slows to just under 50%

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

When venture capitalists participate in seed rounds, the average round size is 3x larger

More Growth Strategy Stats

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

47% of millennials want to work at diverse companies, according to a recent study.

56% treat “Existing Customer Renewals” as high priority

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

80% of venture capital investments take place in the enterprise

Is your SaaS business viable?

How To Make Pricing A Constant Process In Your Organization

At Twitter, 10 percent of tech roles are staffed by women