In a recent webinar titled Winning Pricing Strategies during a Downturn hosted by Octane, industry experts Kristin Harris and Nicholas Zarb from Simon Kucher discussed...
Low revenue growth from existing customers. That’s the problem (or opportunity) that the NRR metric tracks.
Read on for information on how to calculate customer & revenue churn — and advice on interpreting the discrepancy between the two.
Your customer acquisition cost (CAC) is the amount you spend to acquire a customer. But it means little to nothing without another key metric: lifetime value (LTV).
How much does it cost you to acquire a customer?
Back in September, I chatted with Jenny on the Unlimited Partners podcast. I asked her a couple burning questions about startup tactics, finances, and pricing.
Also referred to as usage-based billing, metered billing is a stark contrast with the classic, fifty-bucks-a-seat billing structure you’ve seen for most of your life.
A change from the status quo. Instead of charging flat fees on things that might not be optimized for you and your customers, you charge them based on what they use.
As you might imagine, moving from a traditional subscription-based pricing model to a usage-based one isn’t without its complexities.
Using prepaid credits can add more predictability to usage-based pricing models. With it, businesses can capture upfront revenue on usage.
It is critical to ensure that your business is recognizing revenue on a timely basis and correctly.
Usage-based pricing is becoming a market standard for SaaS companies worldwide.
Pricing is a notoriously difficult thing to figure out as a SaaS startup.
While Octane and Stripe Billing may seem similar, they take radically different approaches to usage-based billing.
MRR is a good KPI for subscription businesses, not usage-based billing models.
With SaaS inception, we dogfood our product and benefit from using it.
SaaS billing is rarely fair. Either the vendor gave away too good a deal or the customer just got ripped off.