SaaS Tattler Issue 43

January 23, 2015 Paul Philp

Top SaaS Insights:

SaaS Transformation

A must read piece by Dave Key –  The Software Vendors Guide to the SaaS Transformation.

Software vendors are following customer demand by transitioning from a product sale to a SaaS subscription offering – that’s where the growth is.  Public SaaS vendors grow at a median rate of 28% versus 8% for Software vendors.

The transition of software vendors to a SaaS model impacts every aspect of the company, whether selling a digital or physical item.  The complexity of moving to a SaaS subscription model is substantial, but a stepwise approach makes it feasible with impressive results.

Worth reading if you are planning the transformation to SaaS, or if you already are running a SaaS business.

Customer Success

The Technology Services Industry Association provides a great guide to The difference between Customer Service and Customer Success.

Customer success grows out of customer service, but its scope and breadth are much broader. Ensuring success is more proactive and requires a holistic approach and real-time visibility into the customer’s needs. Customer success focuses on the customer and finding ways for the customer to realize maximum value and benefit from your product and/or service. Customer success is not a one-size-fits-all approach, as each customer will have different needs and requirements. Ensuring customer success requires a dedicated team or department that is focused on understanding and learning about your customers so they receive and realize the full value of your product or service. Customer success is not a billable service, but that doesn’t mean you can’t realize a return on investment. In fact, the case can easily be made that not having a dedicated team focused on customer success will cost your organization in the long run.

SaaS Metrics

Do you care about cash flow?  Then you will love this article.  Getting More Cash Out Of SaaS: Timing Is Everything.

The “cash-for-growth tradeoff” is a well-known question confronting most SaaS companies. Software subscription businesses incur expenses today to make sales that translate into revenues over some future period of time. This can create a timing mismatch between when cash expenses are incurred (e.g. sales and marketing) and when cash receipts are collected from customers. This also explains why SaaS companies often consume lots of cash and show significant P&L losses during high-growth phases. So what does the timing of billings and cash collection have to do with all of this?

For starters, the impact of cash collection on cumulative cash needs is vastly underestimated by many practitioners. There are also other important considerations associated with upfront cash collection.

Super SaaS Fundings:

Button -$12 Million Series A on January 22, 2015.

Cloud Health Technologies -$12 Million Series B on January 21, 2015.

Poka -$2.5 Million Venture on January 21, 2015.

Early Sense – $20 Million Series F on January 20, 2015.

Newest SaaS Services from Product Hunt

Context.io – API for email inboxes.

Canvs+– Email tracking, instant scheduling, surveys, and more.

Urgent.ly – Get free lessons on how to grow revenue and build your startup!

Zero Push – New with real-time translation.

Other Great Weekend Reads:

Figuring out how much capital your startup may need to raise will inform lots of different strategic decisions. The Fundraising Patterns Of Unicorn SaaS Companies.

My advice is to keep it simple to get started as soon as you’re done reading this post.  How to create winning sales documentation.

Over the next six months, I joined our support team and spent more than 20 hours each week doing customer support. Why This CEO Spends 20+ Hours Per Week On Customer Support

Service customers don’t want features, they want outcomes. Great read from Geoffrey Moore: The Product-Service Shift – Transforming Your Operating Model.

Planning for 2015 underway? The Guide to Developing a Business Case for Customer Success will help you achieve your customer success mandate in the coming year.

Want something added to the SaaS 2.0 Tattler – let us know! And let us know your take on the SaaS 2.0 Tattler in general – we’d love your feedback.

Curated by the team at Amity using the outstanding tools provided by Product Hunt, BetaList and CrunchBase. We encourage sharing and subscribing!


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