Simply put, SaaS businesses are traded on a multiple of Annualized Recurring Revenue (ARR). All the other drivers of valuation are tied back to this benchmark in order to support a higher or lower multiple.
This is a summary of these drivers pulled from a series of white papers published by SaaS Capital.
read more at www.saas-capital.com
Pricing - Setting up your startup for SaaS GrowthAnadi Raj Tiwari
Deep dive into Pricing Strategy. Learn the axes available to pull pricing lever for SaaS growth in subscription economy. Understand the influence ASP has on the options available and how to align it strategically across the 3 key SaaS sales model.
This presentation is from my talk at the 2017 SaaStr Annual Conference in San Francisco. It offers an overview of a simple model to understand a SaaS business and the key levers a CEO can pull to get the most impact. The presentation covers:
Optimizing the SaaS Funnel:
- Get inside your customer’s head
- Break down the funnel into microsteps
- Identify bottlenecks
- Use funnel math to make improvements
12 key levers within the funnel:
1) Product/Market fit
2) Top of the funnel flow
3) Conversion rate
4) CAC (customer acquisition cost)
5) Number of sales people
6) PPR (productivity per rep)
7) Getting enough leads
8) Pricing
9) Customer retention rate
10) Dollar retention rate
11) Months to recover CAC
12) Recruiting, onboarding & management
A detailed look at why SaaS business are so different from traditional software companies, and why traditional ways of looking at their finances fail to understand the business. Provides an alternative set of metrics that show the right way to look at a SaaS business.
For more on the SaaS business model and Metrics, see this blog post:
www.forentrepreneurs.com/saas-metrics-2/
WebSummit 2018 - The SaaS Business Model & MetricsDavid Skok
SaaS businesses are extremely sensitive to a small number of important variables. If you are running a SaaS company, understanding how these variables drive your business model is crucial to long-term success. In this talk, David Skok, author of the now famous SaaS Metrics 2.0 blog post will talk through those key metrics and their impact on the overall SaaS business model.
Account Based Sales for Key Account GrowthRevegy, Inc.
According to SiriusDecisions, the recent buzz around account based sales reflects a long overdue need to enhance the way companies do account management...by breaking out of the status quo and exploring new, innovative approaches to the age-old concept of account planning, companies like Oracle are driving immediate pipeline growth from their most strategic customers.
Learn how world-class sales organizations are applying modern, account-based selling techniques to grow existing revenues:
The critical missing element that prevent account teams from discovering more immediate revenue opportunities
Why traditional approaches to account planning fail and what the most successful programs have in common
The best practices framework that companies like Oracle, JDA and BlackLine use to drive organic growth
Pricing - Setting up your startup for SaaS GrowthAnadi Raj Tiwari
Deep dive into Pricing Strategy. Learn the axes available to pull pricing lever for SaaS growth in subscription economy. Understand the influence ASP has on the options available and how to align it strategically across the 3 key SaaS sales model.
This presentation is from my talk at the 2017 SaaStr Annual Conference in San Francisco. It offers an overview of a simple model to understand a SaaS business and the key levers a CEO can pull to get the most impact. The presentation covers:
Optimizing the SaaS Funnel:
- Get inside your customer’s head
- Break down the funnel into microsteps
- Identify bottlenecks
- Use funnel math to make improvements
12 key levers within the funnel:
1) Product/Market fit
2) Top of the funnel flow
3) Conversion rate
4) CAC (customer acquisition cost)
5) Number of sales people
6) PPR (productivity per rep)
7) Getting enough leads
8) Pricing
9) Customer retention rate
10) Dollar retention rate
11) Months to recover CAC
12) Recruiting, onboarding & management
A detailed look at why SaaS business are so different from traditional software companies, and why traditional ways of looking at their finances fail to understand the business. Provides an alternative set of metrics that show the right way to look at a SaaS business.
For more on the SaaS business model and Metrics, see this blog post:
www.forentrepreneurs.com/saas-metrics-2/
WebSummit 2018 - The SaaS Business Model & MetricsDavid Skok
SaaS businesses are extremely sensitive to a small number of important variables. If you are running a SaaS company, understanding how these variables drive your business model is crucial to long-term success. In this talk, David Skok, author of the now famous SaaS Metrics 2.0 blog post will talk through those key metrics and their impact on the overall SaaS business model.
Account Based Sales for Key Account GrowthRevegy, Inc.
According to SiriusDecisions, the recent buzz around account based sales reflects a long overdue need to enhance the way companies do account management...by breaking out of the status quo and exploring new, innovative approaches to the age-old concept of account planning, companies like Oracle are driving immediate pipeline growth from their most strategic customers.
Learn how world-class sales organizations are applying modern, account-based selling techniques to grow existing revenues:
The critical missing element that prevent account teams from discovering more immediate revenue opportunities
Why traditional approaches to account planning fail and what the most successful programs have in common
The best practices framework that companies like Oracle, JDA and BlackLine use to drive organic growth
• 3. The 3 Models of SaaS Pricing1How to Pick the Best Price28 Pricing Hacks3How to Test New Pricing4We’ll cover...
• 4. Model 1: Targeting Small Businesses1
• 5. Self-service, no sales team, limited support
• 6. Pricing in the $10 - $100/month rangeThis mean you need to focus onscale and acquiring customerscheaply.
• 7. Similar companies
• 8. Model 2: Targeting Enterprise2
• 9. Sales team, contracts, full support
• 10. Pricing is $1,000s or $10,000s/monthVery little is automated, your teamwill be working very closely witheach customer.
• 11. Similar companies
• 12. Model 3: The Mid-Size Hybrid3
• 13. Automated marketing with a sales team
• 14. Pricing is $100’s/monthYou’ll need to scale your leads butyou’ll have a full sales team toclose them.
• 15. Similar companies
• 16. Pick the right price range for your vision
• 17. 2 Bad Methods for Pricing
• 18. 1. Product cost + X%You’ll undercharge somecustomers and overcharge others.
• 19. 2. What does the customer want to pay?People have no idea until you askthem for their credit card.
• 20. Pricing by Value
• 21. Value-Based PricingYour customers get value worth $Yand it only costs them $X.
• 22. For B2B, focus on money earned or saved
• 23. How much extra revenue do they earn?1How many hours do they save?2What other costs do they avoid?3Ask your customers:
• 24. Capture more value from each customer.
• 25. There’s no such thing as a perfect price.If you need more guidance, pick aprice that’s 10% of the valuedelivered.
• 26. 8 Pricing Hacks8
• 27. Rule 1: Go AnnualYou’ll improve cash flow, reduceyour churn, and improve yourrevenue.
• 28. Rule 2: Don’t Add Unnecessary Digits$1000 looks cheaper than $1,000or $1000.00
• 29. Rule 3: Avoid Discounts Unless LaunchingDiscounts create destructivecustomer habits. Do not use themregularly.
• 30. Rule 4: Offer Multiple Prices to Anchor
• 31. Rule 5: Use pricing plans to segment customers.Different customer types getdifferent value from your product.Capture that value.
• 32. Rule 6: Double Your PriceWe all tend to UNDERvalue our ownservices.
• 33. Rule 7: Be Careful With Freemium PlansVery difficult to make it work in B2Bmarkets.
• 34. Rule 8: Grandfather Old Customers InAs long as you don’t raise pricesfor old customers, you won’t getany complaints.
• 35. These are rules, not laws.
• 36. How to Test New Pricing - 4 Steps
• 37. Step 1: Track subscription plans for all customersSubscription plans1Each monthly charge2Any cancelations3Access to total revenue, averagerevenue per user, and churn4
• 38. Step 2: Launch Your New Pricing Page
• 39. Step 3: Track your entire funnel
• 40. Step 4: Track ARPU and churn
• 41. KISSmetrics helps you find the right priceConnects all data to individual people1A/B tests for your entire funnel2See which plans are most profitable
Using Targeted Account Selling to Crush Your Sales KPIsBrandon Redlinger
Account-Based Selling (ABS) is a new and quickly evolving space. There’s no set playbook circulating around the Internet. This method for selling is made possible by advancing technology, increasing availability of data in the public domain and the need to find a new, effective way to sell.
In this presentation you'll discover:
-What Account Based Selling is
-Why you should care
-How to find target accounts
-How to conduct research
-How to establish and execute your outbound plan
-The most costly mistakes
-An example of ABS in action
-----------
This presentation was brought to you by PersistIQ
Our software empowers sales reps to easily create personalized outbound campaigns at scale.
Move faster and sell smarter than ever before.
Try PersistIQ for free at www.PersistIQ.com
Pricing is a SaaS company’s most efficient profit lever, but also one of the easiest to screw up. OpenView's Kyle Poyar explains the top 5 pricing mistakes companies make and how to avoid them in your own business.
Zero to 100 - Part 5: SaaS Business Model & MetricsDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
A high growth SaaS playbook. 12 metrics to drive success. 2 goals, present a simple model to understand SaaS business and show what levers a CEO can pull to get the most impact
7 Strategies for Account-Based Marketing with SalesforceSangram Vajre
Presented at Dreamforce '17 by Terminus Co-Founder & CMO, Sangram Vajre, author of "Account-Based Marketing for Dummies" and founder of the #FlipMyFunnel movement transforming B2B marketing and sales. Learn the basics of ABM and seven practical strategies for demand generation, sales pipeline velocity, and customer marketing.
Lifetime Value (LTV) can help your entire company understand the actual value that you can expect to receive from a single customer over the course of your relationship with them. It is the metric that tells you whether customers are happy and enjoying your product or that customers are ready to churn and you should reassess your strategy.
Here we walk through exactly how to calculate Lifetime Value (LTV), including what to and not to include in the calculation, as well as how to optimize this crucial SaaS metric.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
Describes the steps required to build a Sales and Marketing Machine that is predictable, scalable, automated, well instrumented, and cost efficient.
This was a presentation that I gave at the Lean Startup Circle in Boston on March 24th, 2011.
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessSaaStock
Keynote by David Skok, ForEntrepreneurs Blog & General Partner, Matrix Partners, at SaaStock on Tour New York, 20th June 2018, KnockDown Center, Maspeth, NYC
The SaaS Founder’s Journey: What Matters at Each StageDavid Skok
From a talk given at SaaStock 2017 in Dublin, this slide deck covers the three stages of a startup, the most important question founders should be asking to ensure survival/success, and how to build and scale a sales funnel.
Overview of the Revenue Operations team including objectives, structure, and responsibilities. This team combines marketing, sales, and customer ops into a single groups that delivers a better customer experience and more efficient revenue organization.
B2B Account Based Marketing (ABM) Strategy OverviewFour Quadrant LLC
B2B ABM Strategy Overview
Download the ABM Planning Template www.fourquadrant.com/go-to-market-planning-templates/account-based-marketing-template/
Key Planning Assumptions Based on Research
- How Account Based Marketing (ABM) Translates to Revenue
- ROI for Account Based Marketing (ABM)
- Account Based Marketing (ABM) as a Percentage of the Overall Marketing Budget
- Account Based Marketing (ABM) Adoption
- How Account Based Marketing (ABM) Challenges
- Is Tech a Barrier for Account Based Marketing (ABM)
- Is Account Based Marketing (ABM) an Effective Use of Marketing Tech
For additional go to market resources visit www.fourquadrant.com
Free Downloads @ fourquadrant.com/free-marketing-templates/
For key market research & Stats from Gartner, IDC, Forrester and more visit www.fourquadrant.com/go-to-market-charts-marketing/
Leverage pragmatic insights on go to market processes and market tactics @ www.fourquadrant.com/marketing-resource-blog/
Go-To-Market Strategy Planning Templates @
www.fourquadrant.com/go-to-market-planning-templates/go-to-market-strategy-planning-template/
SaaS Pricing Strategies that Work: How to Design an Optimal Pricing Model wit...saastr
Most SaaS companies are not using pricing to its full potential. We all know pricing is important, but because it is complicated, and often intimidating, we choose an overly simplistic approach. This session will highlight some evidence-based principles that will help you avoid common pricing mistakes and put you on the fast-track to capturing opportunity, without getting lost in analysis, data, and conflicting opinions.
Personalisation to improve customer experienceEpiserver
Personalisation uses the priceless information you gather about customers, both new and returning, to tailor content, information and offers. This session will look at how you can use personalisation to improve user experience and bring your segmentation strategy alive.
• 3. The 3 Models of SaaS Pricing1How to Pick the Best Price28 Pricing Hacks3How to Test New Pricing4We’ll cover...
• 4. Model 1: Targeting Small Businesses1
• 5. Self-service, no sales team, limited support
• 6. Pricing in the $10 - $100/month rangeThis mean you need to focus onscale and acquiring customerscheaply.
• 7. Similar companies
• 8. Model 2: Targeting Enterprise2
• 9. Sales team, contracts, full support
• 10. Pricing is $1,000s or $10,000s/monthVery little is automated, your teamwill be working very closely witheach customer.
• 11. Similar companies
• 12. Model 3: The Mid-Size Hybrid3
• 13. Automated marketing with a sales team
• 14. Pricing is $100’s/monthYou’ll need to scale your leads butyou’ll have a full sales team toclose them.
• 15. Similar companies
• 16. Pick the right price range for your vision
• 17. 2 Bad Methods for Pricing
• 18. 1. Product cost + X%You’ll undercharge somecustomers and overcharge others.
• 19. 2. What does the customer want to pay?People have no idea until you askthem for their credit card.
• 20. Pricing by Value
• 21. Value-Based PricingYour customers get value worth $Yand it only costs them $X.
• 22. For B2B, focus on money earned or saved
• 23. How much extra revenue do they earn?1How many hours do they save?2What other costs do they avoid?3Ask your customers:
• 24. Capture more value from each customer.
• 25. There’s no such thing as a perfect price.If you need more guidance, pick aprice that’s 10% of the valuedelivered.
• 26. 8 Pricing Hacks8
• 27. Rule 1: Go AnnualYou’ll improve cash flow, reduceyour churn, and improve yourrevenue.
• 28. Rule 2: Don’t Add Unnecessary Digits$1000 looks cheaper than $1,000or $1000.00
• 29. Rule 3: Avoid Discounts Unless LaunchingDiscounts create destructivecustomer habits. Do not use themregularly.
• 30. Rule 4: Offer Multiple Prices to Anchor
• 31. Rule 5: Use pricing plans to segment customers.Different customer types getdifferent value from your product.Capture that value.
• 32. Rule 6: Double Your PriceWe all tend to UNDERvalue our ownservices.
• 33. Rule 7: Be Careful With Freemium PlansVery difficult to make it work in B2Bmarkets.
• 34. Rule 8: Grandfather Old Customers InAs long as you don’t raise pricesfor old customers, you won’t getany complaints.
• 35. These are rules, not laws.
• 36. How to Test New Pricing - 4 Steps
• 37. Step 1: Track subscription plans for all customersSubscription plans1Each monthly charge2Any cancelations3Access to total revenue, averagerevenue per user, and churn4
• 38. Step 2: Launch Your New Pricing Page
• 39. Step 3: Track your entire funnel
• 40. Step 4: Track ARPU and churn
• 41. KISSmetrics helps you find the right priceConnects all data to individual people1A/B tests for your entire funnel2See which plans are most profitable
Using Targeted Account Selling to Crush Your Sales KPIsBrandon Redlinger
Account-Based Selling (ABS) is a new and quickly evolving space. There’s no set playbook circulating around the Internet. This method for selling is made possible by advancing technology, increasing availability of data in the public domain and the need to find a new, effective way to sell.
In this presentation you'll discover:
-What Account Based Selling is
-Why you should care
-How to find target accounts
-How to conduct research
-How to establish and execute your outbound plan
-The most costly mistakes
-An example of ABS in action
-----------
This presentation was brought to you by PersistIQ
Our software empowers sales reps to easily create personalized outbound campaigns at scale.
Move faster and sell smarter than ever before.
Try PersistIQ for free at www.PersistIQ.com
Pricing is a SaaS company’s most efficient profit lever, but also one of the easiest to screw up. OpenView's Kyle Poyar explains the top 5 pricing mistakes companies make and how to avoid them in your own business.
Zero to 100 - Part 5: SaaS Business Model & MetricsDavid Skok
Zero to 100 is a learning program from David Skok. It is a detailed instruction manual for how to take your startup from zero to $100m, with a particular focus on the area of building a go-to-market machine. So many of today’s founders come from a product or technical background, and have never been involved with sales and marketing. Right after starting their venture, they are hit with the huge problem of how to build their go-to-market organization and processes. It breaks the journey down into 9 steps, and explains why it is crucial not to skip steps in this journey in the rush to get ahead. The major emphasis of the course focuses on building a repeatable, scalable and profitable growth machine. Once you have that in place, you are ready to hit the gas and scale like crazy.
To see videos of the presentations, click here: https://www.forentrepreneurs.com/matrix-growth-academy-zero-to-100-videos/
A high growth SaaS playbook. 12 metrics to drive success. 2 goals, present a simple model to understand SaaS business and show what levers a CEO can pull to get the most impact
7 Strategies for Account-Based Marketing with SalesforceSangram Vajre
Presented at Dreamforce '17 by Terminus Co-Founder & CMO, Sangram Vajre, author of "Account-Based Marketing for Dummies" and founder of the #FlipMyFunnel movement transforming B2B marketing and sales. Learn the basics of ABM and seven practical strategies for demand generation, sales pipeline velocity, and customer marketing.
Lifetime Value (LTV) can help your entire company understand the actual value that you can expect to receive from a single customer over the course of your relationship with them. It is the metric that tells you whether customers are happy and enjoying your product or that customers are ready to churn and you should reassess your strategy.
Here we walk through exactly how to calculate Lifetime Value (LTV), including what to and not to include in the calculation, as well as how to optimize this crucial SaaS metric.
There are seven key stages in a startup’s evolution from $0m to $50m in revenue. Understanding where you are in that evolution, and how to act at each stage is critical for success, as what is appropriate at one stage is not appropriate at another stage. David will lay out the roadmap, and detail the keys to success at each stage. The talk is aimed at technical/product founders plus their sales, marketing & product executives who are responsible for the go-to-market strategy for their company.
Describes the steps required to build a Sales and Marketing Machine that is predictable, scalable, automated, well instrumented, and cost efficient.
This was a presentation that I gave at the Lean Startup Circle in Boston on March 24th, 2011.
A High Growth SaaS Playbook - 12 Metrics to Drive SuccessSaaStock
Keynote by David Skok, ForEntrepreneurs Blog & General Partner, Matrix Partners, at SaaStock on Tour New York, 20th June 2018, KnockDown Center, Maspeth, NYC
The SaaS Founder’s Journey: What Matters at Each StageDavid Skok
From a talk given at SaaStock 2017 in Dublin, this slide deck covers the three stages of a startup, the most important question founders should be asking to ensure survival/success, and how to build and scale a sales funnel.
Overview of the Revenue Operations team including objectives, structure, and responsibilities. This team combines marketing, sales, and customer ops into a single groups that delivers a better customer experience and more efficient revenue organization.
B2B Account Based Marketing (ABM) Strategy OverviewFour Quadrant LLC
B2B ABM Strategy Overview
Download the ABM Planning Template www.fourquadrant.com/go-to-market-planning-templates/account-based-marketing-template/
Key Planning Assumptions Based on Research
- How Account Based Marketing (ABM) Translates to Revenue
- ROI for Account Based Marketing (ABM)
- Account Based Marketing (ABM) as a Percentage of the Overall Marketing Budget
- Account Based Marketing (ABM) Adoption
- How Account Based Marketing (ABM) Challenges
- Is Tech a Barrier for Account Based Marketing (ABM)
- Is Account Based Marketing (ABM) an Effective Use of Marketing Tech
For additional go to market resources visit www.fourquadrant.com
Free Downloads @ fourquadrant.com/free-marketing-templates/
For key market research & Stats from Gartner, IDC, Forrester and more visit www.fourquadrant.com/go-to-market-charts-marketing/
Leverage pragmatic insights on go to market processes and market tactics @ www.fourquadrant.com/marketing-resource-blog/
Go-To-Market Strategy Planning Templates @
www.fourquadrant.com/go-to-market-planning-templates/go-to-market-strategy-planning-template/
SaaS Pricing Strategies that Work: How to Design an Optimal Pricing Model wit...saastr
Most SaaS companies are not using pricing to its full potential. We all know pricing is important, but because it is complicated, and often intimidating, we choose an overly simplistic approach. This session will highlight some evidence-based principles that will help you avoid common pricing mistakes and put you on the fast-track to capturing opportunity, without getting lost in analysis, data, and conflicting opinions.
Personalisation to improve customer experienceEpiserver
Personalisation uses the priceless information you gather about customers, both new and returning, to tailor content, information and offers. This session will look at how you can use personalisation to improve user experience and bring your segmentation strategy alive.
The Top Ten Credit Union Fraud Claims and How to Prevent Them (Conference Pre...NAFCU Services Corporation
How do your experiences with fraud stack up against other credit unions? In this 2012 Technology & Security Conference session presentation we get a unique look into data provided by several major providers of credit union bond coverage and reveal the top ten credit union fraud claims. Even more important, we uncover the latest techniques and strategies for preventing them. This presentation and shared information allows listeners to benchmark their experience against this first-of-its kind industry-wide information shared from multiple service providers.
Presented by Don Thompson, Independent Consultant, Allied Solutions
Allied Solutions is the NAFCU Services Preferred Partner for Insurance - Bond, Overdraft, Creditor Placed (CPI), Guaranteed Auto Protection (GAP), Mechanical Breakdown Protection (MBP) and for MoneyAisle Reverse Car Loan & CD Auctions.
More info at http://www.nafcu.org/allied
Looking for IRA and retirement plan training? Learn from Ascensus' professional IRA and retirement plan trainers. Mix and match online and instructor-led delivery formats for a better learning experience!
For more information: www.nafcu.org/ascensus
Navigating Today's Mortgage Environment (Credit Union Conference Presentation...NAFCU Services Corporation
Are you looking to attract and retain new members through your mortgage lending programs? Of course you are! This presentation from NAFCU’s 2012 Strategic Growth Conference takes a look at the current consumer, creating a growth business plan, free resources for tracking lending trends, conducting an internal mortgage product analysis and how you can use social media to generate mortgage borrowers. Contact info at: www.nafcu.org/genworth
Curious about heli skiing? Looking for the winter adventure of a lifetime? Look no further than The Total Heliski World of Adventure. Get a glimpse into what this sport is all about and who can do it. Also see some highlights from the Total Heliski Show, held in London since 2010. Contact Total Heliski for the trip of a lifetime.
Bij vrijwel iedere organisatie komt het voor: er wordt een procesmatige werkwijze geïntroduceerd, maar het succes blijft uit. De medewerkers weten vaak niet wat er van hen verwacht wordt. Procesmatig werken blijkt meer te zijn dan alleen het schrijven van procedures en het aanwijzen van procesmanagers. In deze presentatie geeft Jordi Recasens vijf onmisbare adviezen voor het succesvol implementeren van een procesmatige werkwijze. (gepresenteerd door Jordi Recasens op Tooling Event 2009)
Research shows that the most successful companies use benchmarking as a key management process and information tool. As your company develops its annual strategic plans and budget, it helps to understand where you stand relative to your peers and competitors. Deviating from benchmarks isn’t good or bad: But it is important to know why and by how much you deviate in order to test and justify your decisions.
OPEXEngine Founder and CEO Lauren Kelley delivered this “Data-Driven Decision Making” presentation to an audience of over 100 CFOs at an invitation-only event hosted by General Catalyst Partners, a Boston-based venture firm on 19-Oct-2011.
When it comes to scrutinizing costs, most insurance companies can say “Been there, done that. Got the t-shirt.” Managers are familiar with the refrain from above to trim here and cut there. The typical result is flirtation with the latest management trends like lean, outsourcing and offshoring, and others. However, the results tend to be the same. Budgets reflect last year’s spend plus or minus a couple of percent in the same places.
Understanding what metrics are relevant to your startup, and why, can be a daunting task. In this meetup we will discuss what metrics matter for a SaaS company or project. What investors are looking for in the metrics you track and why do they think they are important. What is CAC and LTC, why is CHURN critical? We will also review how to calculate these important metrics, what equations will give you the right answer, and what tools make sense to use for your business.
Presenter: Lecole Cole, Founder & CEO, Skydera
Saas Business Model: Unlocking Infinite Business PossibilitiesFredReynolds2
The Software-as-a-Service (Saas) industry emerged in 2005 and has since witnessed remarkable growth. Substantial investments are now being made in Saas business model startups, which have a promising chance of success if they meet market demands. This sector is experiencing exponential expansion as more time and money flow into it.
growth_vs_scaling_how_to_achieve_it.pptxsarah david
growth and scaling both necessitate long-term thinking, close monitoring, and flexibility. Scaling is the process of improving an organization’s ability to meet rising demand while growth is the process of growing the firm itself. Sustainable growth and long-term success can be achieved when growth methods are combined with scaling endeavours.
growth_vs_scaling_how_to_achieve_it.pdfsarah david
growth and scaling both necessitate long-term thinking, close monitoring, and flexibility. Scaling is the process of improving an organization’s ability to meet rising demand while growth is the process of growing the firm itself. Sustainable growth and long-term success can be achieved when growth methods are combined with scaling endeavours.
At Totango, we’ve developed a framework – the Customer Retention Cost (CRC) and the CRC Ratio – to assess and benchmark customer retention efforts in the industry. This is a critical missing component in the portfolio of metrics that SaaS executives, Boards, and investors should track and measure.
Meet Pardot, your new sales and marketing secret weapon. Learn how adding marketing automation to your CRM can help optimize your lead generation and get the right leads to the right people at the right time. Move leads through the funnel and close the ROI loop faster and more efficiently.
Without a trusted method, your forecasting formula can lead to uncertainty, and this can become precarious. Let’s take a look at another option — a model that actually reflects how opportunities “flow” through your pipeline.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
In this webinar, we won't focus on the research methods for discovering user-needs. We will focus on synthesis of the needs we discover, communication and alignment tools, and how we operationalize addressing those needs.
Industry expert Scott Sehlhorst will:
• Introduce a taxonomy for user goals with real world examples
• Present the Onion Diagram, a tool for contextualizing task-level goals
• Illustrate how customer journey maps capture activity-level and task-level goals
• Demonstrate the best approach to selection and prioritization of user-goals to address
• Highlight the crucial benchmarks, observable changes, in ensuring fulfillment of customer needs
2. Click to edit Master title style
xxx One Number Really Matters…
“Simply put, SaaS businesses are traded on a multiple of
ANNUALIZED RECURRING REVENUE (ARR).
All the other drivers of valuation are tied back to this
benchmark in order to support a higher or lower multiple”
http://grve.me/SaaS-valuation
3. Click to edit Master title style
xxx Key Value Drivers of SaaS Companies
Key value drivers every seller should pay attention to as they go about
preparing for the sale of their company or their company’s stock.
Other nuances of your business will undoubtedly impact valuation, but theses are the broad-based value drivers.
1. Growth
2. Addressable Market Size
3. Customer Retention
4. Gross Margins
5. Customer Acquisition Costs
http://grve.me/valuedrvers
4. Click #1: GROWTH
to edit Master title style
How xxx
long will it take to get big and how likely is it to happen?
Historical growth rate is the single biggest driver of valuation. In fact, it
dwarfs all other factors. The reason growth is so important is that it indicates
both the timing and the likelihood of future profits. Faster growth means
larger profits sooner, and because of the recurring revenue model, high
historical growth rates are a good indication of future growth rates.
There are no public SaaS businesses with growth rates below 20% that have a revenue multiple above 3.5. A 25% level
growth rate is a good, bottom of the range, target for emerging private SaaS businesses.
http://grve.me/SaaS-valuation
5. #Click 2: MARKET to edit Master SIZE
title style
How xxx
big can your business be?
Because market size has a big impact on valuation, you might want to
consider launching into new markets, new geographies, or launching new
products before a sale or investment round.
Just a few paying customers in the new markets will allow your company to
credibly “claim” the expanded market even though it’s not yet fully
developed.
http://grve.me/SaaS-valuation
6. Click #3: RETENTION
to edit Master title style
What xxx
is the risk the business might actually shrink and fail?
The total effect of retention is often under appreciated because of its multi-dimensional
impact and cumulative nature, which can be modest over a twelve-month
planning horizon, but has a large impact over a 3 to 5 year period.
Over 50% of all SaaS companies surveyed reported a retention rate of 90% or better.
http://grve.me/retentionrate
7. Click #4: GROSS to edit Master MARGIN
title style
xxx
Given your revenue, how much money can you make?
While it’s true net income and EBITDA are not direct valuation drivers for growing
SaaS businesses, gross margins are relevant.
Gross margins strongly indicate the profitability of your business when it reaches a
more mature phase. Gross margins also determine how much revenue your
business can channel back into sales, marketing, and product development and
therefore, how capital efficient the business will be.
SaaS businesses must be able to clearly identify costs associated with professional
services versus the costs associated with the product itself. Those two revenue
streams are typically valued separately.
For SaaS revenue streams, (excluding professional services), gross margins are typically 85% to 95% and a
SaaS business can increase its valuation by intentionally focusing on improving its gross margin.
http://grve.me/SaaS-valuation
8. #Click 5: CUSTOMER to edit Master ACQUISITON
title style
How xxx
much money will it take to grow?
High customer acquisition cost (CAC) businesses require more capital to grow and,
thereby, diminish overall returns whether the buyer is a VC or a corporation. Your
“CAC Ratio” is also relevant to your ultimate valuation because it compares
customer acquisition cost to the lifetime value of a customer. The better that ratio,
the higher profitability will be over time.
A related metric to CAC is the “average length of sale”. Buyers and investors want to
understand this metric because it can significantly impact the timing of future cash
flows and quarterly earnings.
Short sales cycles also reduce risk because long sales cycle business can be off-track
for several quarters or years before an issue becomes apparent.
http://grve.me/SaaS-valuation
10. Click to edit Master title style
xxx
SHOULD you increase sales and marketing spend?
There is a clear connection between revenue growth rate and the revenue multiple
applied to a public SaaS companies valuation. SaaS companies growing at 10% to
20% are valued at 2 to 3 times revenue, those that are growing at around 30% are
valued at 4 to 8 times revenue, and those with over a 40% growth rate are valued at
well over 15 times annual revenue.
So given the connection between “spend” and revenue growth, and the clear
relationship between revenue growth and value; the answer to the “should you”
question for any SaaS business that’s focused on increasing shareholder value is
generally “yes”.
One caveat: if your CAC Ratio is negative (customer acquisition cost exceeds the lifetime value of the
customer), more sales and marketing spending will only destroy shareholder value sooner.
http://grve.me/SandMrkting
11. Click to edit Master title style
xxx
CAN you increase sales and marketing spend?
This debate typically comes down to access to capital (think Salesforce.com who
“out-raised” and “out-spent” all their early competitors with the majority of funding
being spent on sales and marketing). Salesforce is an outlier for sure, but the data
clearly show that some type of external capital is required to push growth above
25%.
Finding the money inside the company for sales and marketing investment is
possible, but it usually means shifting resources away from other investment areas
such as product development. This is always an option, but the obvious risk is
getting passed-up in the marketplace in product functionality and innovation.
Finding the right source of capital very much depends your business stage and growth plans.
http://grve.me/SandMrkting
13. Click to edit Master title style
xxx Managing Churn
In the haste to acquire new customers and get accounts implemented quickly (to
start collecting cash), many early-stage companies pay little attention to existing
customers.
This might make sense for a year or two, but then the problem of churn really begins
to impact the business. By the 5th year of a SaaS company’s life, if not addressed,
excessive churn can destroy more than half of a company’s value.
Churn is a good indicator of the health of your SaaS business and ultimately impacts valuation.
http://grve.me/SaaS-churn
14. Click to edit Master title style
xxx Churn Case Study
Retention Inc. and ChurnCo Solutions are providers of B2B SaaS applications who
launched their businesses on the same day. They both license their technology on
an annual basis and all product features are available to licensed users for a
monthly fee. Both companies are booking 10 new customers per month at a flat
subscription rate of $1,000 month and spend
$120,000
per
month
on
sales
and
marke4ng
for
customer
acquisi4on
(CAC).
http://grve.me/SaaS-churn
15. Click to edit Master title style
xxx Measuring Impact of Churn
Churn impacts four key valuation drivers in the same direction:
REVENUE LEVEL | Growth rate | Profit capacity | Predictability
The cumulative impact of churn grows exponentially as the business matures.
http://grve.me/SaaS-churn
16. Click to edit Master title style
xxx Measuring Impact of Churn
Churn impacts four key valuation drivers in the same direction:
Revenue Level | GROWTH RATE | Profit capacity | Predictability
Somewhat less obvious, but with an even larger impact on value, is the
effect of churn on the company’s growth rate:
• high growth SaaS businesses are worth 5 to 8 times annualized revenue
• slow growth businesses are only worth 2 to 3 times annualized revenue
So while Retention Inc. and ChurnCo have the exact same bookings rate, ChurnCo is growing
35% slower by year 5 than Retention Inc. just because of its higher churn. That difference in
growth will have a significant impact on the revenue multiple that prospective buyers will assign to
the business.
http://grve.me/SaaS-churn
17. Click to edit Master title style
xxx Measuring Impact of Churn
Churn impacts four key valuation drivers in the same direction:
Revenue Level | Growth Rate | PROFIT CAPACITY | Predictability
The higher profit margin can be re-invested in sales and marketing to further increase growth.
http://grve.me/SaaS-churn
18. Click to edit Master title style
xxx Measuring Impact of Churn
Churn impacts four key valuation drivers in the same direction:
Revenue Level | Growth Rate | Profit Capacity | PREDICTABILITY
The higher the predictability of the future cash flow streams, then the lower the
discount rate applied to those cash flow streams and the more they are worth.
In the real world, this means a corporate buyer or investor will be much less worried
about the business imploding after the purchase and will pay a higher price for that
lower risk.
“While there are no databases tracking churn to purchase price, we believe
the lower churn business in our model would easily add a 1x increment to the
http://grve.me/SaaS-churn
revenue multiple taking it from 5 to 6”
19. Click to edit Master title style
xxx Valuation Comparison
Because both revenue and multiple are impacted by churn,
the change in value is significant.
http://grve.me/SaaS-churn
“In the context of fundraising, the impact can
be more profound. We have seen SaaS
businesses that fail to retain their customers,
for whatever reason, who cannot raise capital
at any price.
Our own underwriting criteria call for an
absolute minimum retention rate of 85%, and
the retention threshold for many VC’s is even
higher.”