Understanding SaaS Metrics

#StartupBasics | Series by Insights Alley (Hosted by Arun Verma)

S01E07 -Understanding SaaS Metrics

Guest: Nick Franklin, Founder & CEO at ChartMogul

 

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In this episode of #StartupBasics, we discussed:

– The Story of Nick from his early career to Zendesk & now ChartMogul.

– Metrics to track in very early stage of your startup: How many people are signing up? Are they logging in? Are they coming back to the product? How often they login back?

– Metrics vs KPI

– Different type of metrics buckets reflecting different parts of your business:

  • Product Usage Metrics
  • SaaS Business Metrics
  • Financial/Accounting

– The upside of using subscription analytics tools for your SaaS Business metrics

– MRR & ARR:

  • Understanding MRR & ARR in detail
  • Importance of MRR
  • Two ways to think of ARR
  • How to calculate it?

– The number of Customers/Accounts & ARPA/ARPU:

  • How to calculate it?
  • It’s significance
  • How segmentation brings more meaning to your metrics

– CAC:
The best customer acquisition method is by word of mouth

– LTV:

  • Understanding Customer Lifetime Value
  • How to calculate it?

– Customer Lifetime Period & Payback Period

– Churn:

  • Understanding Churn & Churn Rate
  • Types of Churn

– Benchmark for these Metrics
Matrix Partner’s Annual Private SaaS Company Survey

– CAC to LTV Ratio:
David Skok’s Lecture on CAC to LTV Ratio

– Health & Sustainability of your SaaS Business

  • Cash in the Bank, Burn Rate and Runway
  • Churn Rate & SaaS ceiling

– Overlooked Metrics

– The relation between SaaS business metrics & product usage metrics.

 

Resources mentioned:

 

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Pricing Strategy for B2B & B2C SaaS startups

#StartupBasics | Series by Insights Alley (Hosted by Arun Verma)

S01E06 – Pricing Strategy for B2B & B2C SaaS startups

Guest: Patrick Campbell, Co-Founder & CEO at ProfitWell

 

Download the MP3 audio file: right-click here and choose Save As.

Subscribe to this Podcast on YouTube, iTunes, Google Play Music, Stitcher, Spotify, Google Podcasts, Overcast or any of your favorite app.

 

In this episode of #StartupBasics, we discussed:

– The Story of Patrick from his early days to Price Intelligently & now ProfitWell.

– Importance of Pricing strategy in your business.

– Free Trial vs Freemium
Freemium is not a Revenue Model, it is instead an acquisition method.

– What type of Pricing strategies are there? Problems with them & which is the best strategy?

  • Cost+Markup
  • Competitive Benchmarking
  • Value Metric based pricing

– How to find the Value Metric?

  • We are able to measure value now that we are creating for our users like we were not able to do 10 years ago.
  • Thinking of value metric in very basic fundamental things.
  • How to find your value metric – Step by step process, with an example for a CRM.

– How to find the exact price point in early-days?

  • Understand that human beings think of value on a spectrum.
  • What questions to ask to find out the right initial price point?

– How to update pricing?

  • Pricing complexity & how often?
  • Your price is the exchange rate on the value you are providing to your customers.
  • Probably you are not great at pricing right now.
  • Treat pricing as the growth lever as it deserves to be treated as.

– What to do with old customers with old pricing?
What not to do? and what to do?

– About One-time fee, Add-on and service fee from your customers.

– How to make kick-ass pricing page?

  • Think in terms of user persona that come on your page.
  • Align everything based on the different buckets of different personas
  • Self-serve vs Contact Sales: Understand the unit economics of each plan/persona pairing.

– Pricing Localization: How to do it? with examples

– What to test and optimize in your pricing strategy?

  • Don’t A/B test your pricing, unless you are Amazon.
  • The pricing strategy of Drift vs Intercom

– What to test and optimize in your pricing strategy?

– Reflecting brand in your pricing

– How to start now when you did not any of this stuff from starting?

– Pricing of ProfitWell itself

– Pricing is a Process, not a magic bullet.

 

Resources mentioned:

 

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