Improve Your Pricing Schedule And Turn More Profit

SaaS + Software
Quote in Growth Strategy

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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.

PriceIntelligently

More SaaS + Software Stats

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

Companies with longer contracts (2+ years) reported the lowest annual unit churn

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

More Growth Strategy Stats

Companies with longer contracts (2+ years) reported the lowest annual unit churn

SaaS organizations are now operating in over 100 countries

How Often Should The Pricing Committee Be Meeting And Making Changes?

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

SaaS IPOs have more than doubled over the last 12 years

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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 all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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