Not just when you’re developing or marketing a product, but through every stage of the customer lifecycle. It sounds simple — but it’s not easy: talking with your customers through every stage of the customer lifecycle. There’s been a lot said about the value of talking to your customers before you build the product to ensure market fit, but very little said about continuing the conversation past marketing and past the sale. Why do I know talking with your customer is *the* very best predictor of, and contributor to, SaaS business growth? Because creating a constant flow of customer feedback, input, and conversation makes Customer Experience (CX) better. Multiple studies show that CX leads to revenue growth. CX also drives brand advocacy (aka. word of mouth), creating a virtual sales army, which leads to: Decreased cost-to-acquire. “Customers with the best past experiences spend 140% more than those with the poorest past experiences.” — Harvard Business Review Increased customer lifetime value. “Customers with the best past experiences have a 74% chance of remaining a member for at least another year.” — Harvard Business Review Plus, qualitative customer research leads to making data-informed decisions that streamline product management, ensure customer success, and make marketing and sales far more efficient. In short, as Laura Klein, author, VP of product, and co-founder of Users Know says, “User research saves time. Period. When you actually understand what your user needs before you build things, you have a much lower chance of having to go back and rebuild everything after shipping something that nobody uses.”
Value-based pricing - one of SaaS’s most favorite (and sustainable) pricing schools of thought. Conventional wisdom says that if you tie the price you charge for your product to a value metric that aligns with your product, then you're set for success. However, can any value metric that aligns with your value give you a healthy revenue model? Or do the revolutionary revenue models of Michelin, Google, et al. possess something more? How does this play out in SaaS pricing? If the core value of your SaaS is intangible (like better team collaboration, increased productivity, etc.) how do you tie back your pricing to that value? This post aims to answer all these questions and more.
SaaS stands for Software as a Service, a type of business model that sells access to software on a monthly basis rather than selling a license to software upfront. SaaS businesses charge a smaller monthly fee and make money by keeping customers over a long period of time, rather than collecting all the money for the software sale at the time of sale. SaaS business models have particular growth challenges including how to manage customer churn rates by improving customer retention, how to increase customer lifetime value, and how to best structure a sales and marketing team to fuel growth. These are the best articles on how to grow a SaaS business including how to reduce SaaS churn, how to build a SaaS customer success team, how to market a SaaS product, what net negative churn is and more.
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