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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

56% treat “Existing Customer Renewals” as high priority

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

Internet Sales strategies have a significantly lower CAC of just $0.42

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

More Growth Strategy Stats

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

More than 1/2 of SAAS companies increased their spending on customer retention last year

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn