Improve Your Pricing Schedule And Turn More Profit

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.

SaaS & Tech Growth Strategy Articles

• An Applied Innovation Model
  Innovation and creativity are becoming increasingly valuable as the need for unique solutions to business problems becomes more salient. Cognitive psychologist Scott Barry Kaufman argues that the creative process can be viewed in four stages: 1. Preparation – identify the problem and perform research 2. Incubation – passive, unconscious period where innovation “percolates” 3. Illumination […]
• Brand Strategy Framework
  A Framework for Creating A Smart Brand StrategyA brand is so much more than a logo.It's what makes you unique and how you communicate that to prospects, customers, and employees to inspire them to take action.We've developed a Brand Strategy Framework to drive marketing, sales, recruiting, and raising capital.A smart Brand Strategy is central to […]
• Defining Your Brand Voice
  Have you defined your brand voice? Andy shares his thoughts on why it’s important for you to define your brand voice in your marketing.
• What Type of Media is Right for Your Target Audience?
  Choosing the most suitable media type is necessary if you want to communicate your message to your technical audiences effectively. Technical audiences require a more technically detailed approach when your IT company is conveying its message to them. Use these media types to ensure that your technical audience is getting the insight you aim to […]
• Understanding the Fundamentals of Your SaaS Go-To-Market Strategy
  Understanding the Fundamentals of Your SaaS Go-To-Market StrategyExplore the article:What is a go-to-market strategy for SaaS companies?How do you create a go-to-market strategy for a SaaS product?What are the key components of a successful go-to-market strategy for SaaS?How can SaaS companies effectively target and reach their ideal customers?What role does pricing play in a SaaS […]
• Everything You Need to Know About SaaS Affiliate Programs and How to Implement it Into Your Product-Led Growth Strategy.
  SaaS Affiliate Programs: Everything You Need to Know About and How to Implement it Into Your Product-Led Growth Strategy.Generating trial users and acquiring customers for your SaaS business can be a frustrating challenge. If you're looking for new ways to grow your business, you may have heard of affiliate marketing and wondered how it can […]
• The Vision Gap
• What The Smart Home Means For Marketing
  This is the reality that we are on the cusp of...
• Your Guide to All Things EdTech: Go-To-Market, Branding, Positioning
  Your Guide to EdTech: Go-To-Market, Branding, and Positioning StrategiesA compelling positioning, branding, and go-to-market strategy is critical for EdTech companies for several reasons.The EdTech market is highly competitive, with many companies vying for attention from educators, students, and parents. A strong brand can help your company stand out in this crowded market and attract new […]

SaaS + Software Stats

• For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time
• The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel
• As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth
• The fastest growing SaaS companies raise an average of $9.5M in Series A funding
• All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing
• Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.
• If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn
• 56% treat “Existing Customer Renewals” as high priority
• How Often Should The Pricing Committee Be Meeting And Making Changes?

SaaS & Tech Growth Strategy Stats

• 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
• Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
• After $10M in ARR, the median growth rate slows to just under 50%
• Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues
• 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%”
• Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate
• To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)
• A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses
• Negative Churn and Expansion Revenue