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.
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:
If you want your online business to be a success, whether or not you are using the subscription model, your website must be good. There are several aspects of businesses websites which have a negative impact on their results; here is our run down of them and what to implement instead.
When it comes to attracting subscribers to your Monthly Recurring Revenue (MRR) SaaS business, pricing is an important consideration. There are probably numerous other organisations that are out there offering similar or substitute products to your own. While price isn’t always a factor in the purchasing decision of recurring customers, for new customers it can be high on their priority list.
The auto-renew billing model is a time saver when it comes to generating revenue from your subscription business. However, when it comes to increasing the price of your subscription service, there are several issues that can arise.
Running a subscription business means that you need to set up an auto-renew payment system at some point. This is by far the most cost effective way to generate a long term income from your customer base. However, setting people up on an auto-renew system can be difficult and you should ensure that you are as transparent as possible so you don’t upset them.