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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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”

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

Growing faster has twice as much impact on share price as improving margins

The best place to hide a dead body is page 2 of Google search results.

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

More Growth Strategy Stats

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Negative Churn and Expansion Revenue

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

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

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

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