Businesses need to set goals if they want to achieve results and your SaaS business is no different. By setting goals you will learn more about your customers, business and yourself as you progress towards becoming a market leader.
One of the best ways to increase the MRR generated by your SaaS business is to sell more products to your existing customers. It is generally considered cheaper and easier to do this. When you have only one product, your software package, this can be a difficult concept for some businesses to consider.
Fusebill is excited to be named to the top 25 Billing and Invoicing apps by Getapp a Gartner company
The lifeblood of your SaaS company is your customers. They pay subscription fees which help keep your organisation running and earn you a living. Losing a customer can be very painful and it is important that you understand why they have unsubscribed from your services. Then you can implement processes to prevent it in the future.
Customers aren’t always concerned with the price of a service when making a purchasing decision for brands they know well. Startups don’t have this luxury and have to attract customers with a pricing scheme that is highly competitive and designed to attract the ideal customer. Then, once the brand has established itself and has a stable brand valuation within the market, it can start to offer the same product at a more profitable rate.
The churn rate is one of the most important metrics for a subscription business to measure. It allows you to determine if there is a problem with your business’ processes, pushing customers away from your business. It also affects the other three primary metrics your SaaS business should be monitoring:
When it comes to growing your business, one of the best ways to do so is to sell to your existing customers. You have already built up a strong trust between you and them to a point that they trust your judgement and know you will provide good service. With this benefit comes reduced marketing and sales costs, which lead to greater profits per unit.
Word of mouth marketing is very powerful. Friends and colleagues of your customers will trust their peers more than they are likely to trust you. Customers are also cost effective in developing new leads and business. The only problem you have is to work out how you can encourage your current clients to refer new business to you.
The lifetime value of your business is an important, if not the most critical metric, that your subscription based SaaS business should be monitoring. While the monthly income of your business is vital, the subscription model makes it hard to determine whether the acquisition of customers is cost effective.
When it comes to subscription based business models, many question whether or not discounts should be offered to those committing to long term agreements. For some, it makes sense to offer a reward for those willing to agree to a long term contract. Others believe that these offers shouldn’t be available.