USIO

JANUARY 15, 2024

Subscription Models: Usio will provide general insights into why subscription-based payment processing is often considered advantageous for Software as a Service (SaaS) businesses. Predictable Revenue Streams: Subscription models provide a consistent and predictable revenue stream for SaaS companies.

SaaS Payments 130

SaaS Payments Payment Services Payments Payment Solutions 130

How To Buy Saas

DECEMBER 20, 2024

Keeping track of the accounting for SaaS businesses can be challenging because of the subscription model that they operate on, and that is why most companies opt for cloud-based software solutions to smoothen the processes. This is an important process as you need to send invoices to customers on time and also collect revenue effectively.

Payment Services 52

Payment Services SaaS Payments Payment Solutions Payment Features 52

Sales Hacker

FEBRUARY 7, 2025

Value Alignment: Pricing starts to align with the value customers perceive, often measured in metrics such as usage, number of seats, or specific features. Scaling Operations: As the customer base grows, the company refines its pricing strategy to optimize customer acquisition costs and lifetime value.

Pricing 112

Pricing Scale SaaS Technical Review 112

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. As many of these channel partners move to newer distribution models, the brokerage channel model in particular, they represent an efficient and leveraged customer acquisition channel.

Outsourcing Services 113

Outsourcing Services SMB Acquisition Scale 113

Baremetrics

AUGUST 1, 2021

So what works (and doesn’t work) as a SaaS acquisition strategy? In this article, you’ll learn 5 keys to building a purpose driven acquisition strategy for your SaaS and how to avoid common mistakes along the way. SaaS Customer Acquisition: Getting the basic right How to Build a Purpose-driven SaaS Customer Acquisition Strategy 1.

Acquisition 98

Acquisition Strategy SaaS Underperforming Technical Team 98

Sales Hacker

MAY 10, 2021

The customer journey from acquisition to retention has to be seamless. To create an effective and efficient sales funnel, your sales and customer support teams need to be well trained and in sync with each other. Benefits of involving your customer support team in sales. Identify and fix common pain points.

Customer Support 81

Customer Support Underperforming Technical Team Sales SaaS 81

Stax

MARCH 16, 2025

The True Cost of User Churn Customer churn is more than just an operational inconvenience – it directly impacts a SaaS company’s bottom line. Aside from building a stellar product, you need to be prepared to work through buggy features and the need for modifying existing ones so that customers have little to no downtime.

Payment Solutions 88

Payment Solutions Software Review Churn SaaS Payments 88

Stax

MARCH 18, 2025

However, a SaaS company providing global HR and payroll solutions may have a few hundred customers paying a monthly or annual feein other words, making recurring payments over a longer period of time. If customers want to make a switch to another SaaS competitor, it’s easier to do so, affecting the bottom line.

Scale 117

Scale Payment Services Payments SaaS Payments 117

Intercom, Inc.

OCTOBER 16, 2019

If your average order value is less than $5,000 a year, your application ideally needs to be a “self-service” model, where your customer signs up themselves with “zero touch” from the company. The key here is to keep the cost of customer acquisition down. Gaining new customers. The middle ground ($5,000 p.a.

Business Model 195

Business Model Scale Pricing Payment Methods 195

The Angel VC

MARCH 23, 2016

As I wrote in the original post: It's a simple plan for an early-stage SaaS startup with a low-touch sales model – a company which markets a SaaS solution via its website, offers a 30 day free trial, gets most of its trial users organically and through online marketing and converts them into paying customer with very little human interaction.

SaaS Payments 217

SaaS Payments Headcount SaaS Payment Methods 217

Clouded Judgement

SEPTEMBER 6, 2024

To fund significant customer acquisition costs to capture market share. The first assumption is that at the end of the rapid customer acquisition spend you will end up as the monopoly or duopoly leader (with, importantly, pricing power). The end state may very well be one or two Kings emerge in each category.

Cloud 167

Cloud Scale Venture Capital Sales Hiring 167

Intercom, Inc.

JULY 1, 2019

The new SaaS model is subscription revenue-driven, which begs the question: what is a conversion today? At Collision , I spoke about the new techniques that product owners and marketers will need to navigate the world of customer relationships. It’s not just SaaS; subscriptions are taking over.

Retention 223

Retention Onboarding Subscription Payment Features 223

CustomerSuccessBox

APRIL 11, 2019

Customer Success and Sales are different individuals, different roles, different KPIs and deliver different values. Sales delivers customer acquisition vs. Customer Success delivers product adoption + retention + upsell. In the subscription economy, retention is always more important than acquisition.

Customer Success 80

Customer Success Payment Features Sales Hiring Subscription 80

FastSpring

APRIL 1, 2021

Because the ultimate goal of using free trials for acquisition is to increase the number of paid users, your program’s success is based on looking at how often people upgrade from a free plan to a paid one. It is a concrete way to optimize customer acquisition. Are users automatically billed or signed up for recurring payments?

Payment Solutions 138

Payment Solutions SaaS Payments Payment Methods Strategy 138

Practical Advice on SaaS marketing

JANUARY 23, 2011

But the SaaS model requires an ultra-efficient customer acquisition process, and there's a penalty to pay for that kind of friction. Customer Support and Sales : Customer support and sales were also once considered neatly separated on the org chart. Not so in the SaaS world.

SaaS 100

SaaS Acquisition Customer Support User Experience 100

CustomerSuccessBox

JUNE 5, 2019

Why calculate customer health score? First, let’s answer the question, what does a typical customer journey in the subscription economy look like? A SaaS customer goes through acquisition, onboarding, retention, and upsell. The five dimensions of customer health score.

Payment Features 89

Payment Features Systems Review Technical Review Churn 89

Totango

APRIL 30, 2021

Comparing the cost of customer retention versus customer acquisition underscores why retaining clients is so important. Calculating the Cost of Customer Acquisition. To calculate your average CAC, total up all the marketing and sales costs that go into your acquisition efforts for a given period.

Acquisition 64

Acquisition Retention Social Media Advertising 64

Practical Advice on SaaS marketing

AUGUST 11, 2009

The goal with SaaS marketing is to build a machine that generates lifetime customer revenue that exceeds customer acquisition costs. You want a process in place whereby every $1 of sales and marketing expense yields more than $1 in revenues over the life of a customer's subscription. (I

SaaS 100

SaaS Acquisition Subscription Payment Features 100

User Pilot

OCTOBER 5, 2023

TL;DR The CAC payback period measures the time it takes for a company to recover the money invested in new customer acquisition. This metric helps SaaS companies choose the most effective customer acquisition channels , diagnose inefficiencies in customer retention strategies , and inform pricing decisions.

SaaS Payments 105

SaaS Payments Customer Lifetime Value Acquisition Payment Solutions 105

The Angel VC

SEPTEMBER 16, 2013

For all the differences, though, the goal is always to create a scalable process which allows you to acquire customers for a small fraction of their CLTV. As a rule of thumb, you should aspire a payback time of 6-9 months, meaning that you spend 6-9 months' worth of subscription revenue to acquire a customer.

Scale 153

Scale Sales Hiring Startup Sales 153

Chargify

MAY 8, 2019

There is no subscription billing model that works for everyone. It’s crucial to weigh the pros and cons of each option before deciding how to charge your customers. . Moreover, your pricing strategy should be based on your value metric, and different value metrics require different types of subscriptions. image source).

Subscription 69

Subscription Payment Features SaaS Payments Payment Solutions 69

The Marketing & Growth Hacking Publication

FEBRUARY 3, 2019

They expect an end-to-end shopping “experience” and this is where eCommerce subscription has a chance to shine by developing long term relationships with consumers. And subscription eCommerce seems to be the answer. The subscription eCommerce market has grown by a whopping 100% year-over-year for the past five years.

Payment Methods 40

Payment Methods Payments Payment Features Subscription 40

Practical Advice on SaaS marketing

AUGUST 9, 2010

Customer support was in a different building. Marketing connected to Sales and to Product Development The need for a close connection between marketing and sales is critical to cost-effective customer acquisition. It's one of the key benefits for companies moving from on-premise to a SaaS subscription model.

Outsourced Development 100

Outsourced Development Marketing SaaS Customer Support 100

Tom Tunguz

JANUARY 7, 2015

Unlike most SaaS companies who offer a single product, LinkedIn offers three: Talent Solutions, Premium Subscriptions and Marketing Tools. Salespeople buy Premium Subscriptions to network and search on the platform. In 2007, the Premium Subscriptions generated 53% of the revenue. In 2007, online sales generated 63% of revenue.

Sales Recruiting 100

Sales Recruiting Benchmarks Metrics SaaS 100

SaaSOptics

APRIL 7, 2022

” Or, as Openview Partners defines it, “ product-led growth is an end user-focused growth model that relies on the product itself as the primary driver of customer acquisition, conversion, and expansion.” Does this mean that sales, marketing, and customer success are forced to hang out on the sidelines?

Business Model 74

Business Model Payment Features Business SaaS 74

Stax

DECEMBER 6, 2024

By leveraging cutting-edge technology and a deep understanding of the payments landscape, they ensure that clients can navigate the complexities of global payments with ease. Evolution of Worldpay: Mergers, Acquisitions, and Branding Changes Originally launched in 1971, Worldpay Inc.

Merchant Services 88

Merchant Services Payment Services Payment Methods Payment Solutions 88

Practical Advice on SaaS marketing

JANUARY 10, 2017

After all, subscription pricing is one of the great advantages of SaaS solutions over traditional on-premises software. As it it wasn’t tough enough already to build visibility, capture leads, convert them into qualified opportunities, and finally into paying customers.

SaaS 113

SaaS Acquisition Customer Success Subscription 113

Tom Tunguz

JULY 14, 2013

The product is essential to the operation of a customer’s business. For example, Zuora enables subscription billing; Expensify manages employee expenses; ZenDesk builds customer support systems. Customers can’t function without it. Competition increases customer acquisition costs and increases sales complexity.

Sales Hiring 100

Sales Hiring Venture Capital SaaS Machine Learning 100

Practical Advice on SaaS marketing

JUNE 29, 2011

The good news about the SaaS subscription model: long-term paying customers. The bad news about the SaaS subscription model: long-term paying customers. As long as the subscription fees cover customer acquisition expenses and other costs, the model should support a profitable, growing business.

SaaS 100

SaaS Subscription Payment Features Acquisition 100

User Pilot

APRIL 8, 2024

Product-led growth is a well-known bottom-up approach that relies on the product for customer acquisition and revenue expansion. Free trials and freemium enable the users to explore the product and experience its value to convert them into paying customers. In freemium , the user gets access to limited functionality for free.

Strategy 100

Strategy Business SaaS Customer Lifetime Value 100

ProfitWell

MARCH 25, 2020

Acquisition is the weakest growth lever. We studied the levers—acquisition, retention, and monetization—of 512 SaaS companies. We found that monetization and retention have much higher revenue impacts than acquisition when considering the same level of impact across each growth lever. How do we know this? Improve ROI.

Acquisition 52

Acquisition Retention Payments SaaS Payments 52

User Pilot

SEPTEMBER 18, 2024

Short for acquisition, activation, retention, referral, and revenue, these metrics help you measure and drive product growth. It involves grouping and tracking relevant metrics associated with each stage of the user journey: Acquisition – Users visit your product or website for the first time and choose a free trial (or demo).

Metrics 105

Metrics Customer Lifetime Value Acquisition Software Review 105

Tom Tunguz

APRIL 16, 2013

Shifting from Customer Acquisition from Field Sales to Customer Support. Customer Support Becomes the Sales Team This huge number of customers imply every customer support rep must handle hundreds to thousands of customers per year instead of ones or tens of customers typical with enterprise focused companies.

SMB 100

SMB Scale Startup SaaS 100

Blulogix

JANUARY 5, 2024

Key Definitions in Subscription Billing: Demystifying the Jargon By BluLogix Team Welcome to the fourth installment of our comprehensive guide on selecting the right subscription billing platform. Before we go much further, let’s go deep into essential definitions and concepts in the world of subscription billing.

Subscription 52

Subscription Payment Features Payment Services Payments 52

Totango

MAY 27, 2022

SaaS businesses adopt product-led marketing to lower customer acquisition costs while improving customer retention and accelerating revenue growth. Sales conversion: use of the freemium product motivates the customer to upgrade to a premium version. In this blog, we’ll cover the essentials of product-led growth.

Acquisition 126

Acquisition Retention Technology Strategy 126

ProfitWell

MARCH 12, 2020

The subscription-based economy boom has brought with it more competition than ever before, raising the bar for companies trying to offer recurring products or services to their customers. However, behind the boom lies the rising consumer demand for subscriptions. Payment processing. Customer support.

Subscription 59

Subscription Payment Features SaaS Payments Payments 59

ChurnZero

APRIL 25, 2025

Keep in mind that a lot of data are lagging indicators (renewals or cancellations, customer satisfaction surveys), or the fidelity of that data may be questionable (customer info is siloed, batched, or outdated). Non-recurring revenue. Dont let one-off payments fall through the cracks. Growth and scalability.

Forecasting 52

Forecasting Customer Success Payments Data 52