While many businesses would not be able to cope without some form of subscription software helping them to run their SaaS or other subscription billing, there are those that do undertake this task. Often they use forms, sheets, databases and spreadsheets to keep on top of their subscriber lists.
When you are creating a SaaS business, you need direction and a way to measure your success against your expectations. To do so, you need to document expectations or projections. One of the key metrics you should be measuring is the cashflow of your SaaS business. This doesn’t mean just what you are expecting during the year but what the cashflow should be like every single month, week or even day.
When it comes to running a SaaS business, it’s always important to know about the industry in general. Experience is one way to understand the industry; another is to learn about stats and studies that apply to your niche.
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.