SaaS Capital received about 1,500 responses for their annual survey asking B2B SaaS companies what percentage of their revenue is spent on differnet line items. Interestingly, equity-backed companies spend twice as much on Sales, but only three percentage points more on Marketing than boostrapped companies.
Aside from the formula structure, the key difference between contribution margin and gross margin is the POV. Contribution margin shows the profitability of acquiring and keeping the customer, while gross margin shows the profitability of delivering the product to that customer.
Looking for a way to track key metrics to improve your SaaS company's performance? This article walks through the strengths and weaknesses between three popular platforms to track key SaaS metrics.
This article walks through a seven-day guide to check the SEO health of your site while creating a system to sustain the continued improvements.
Content calendars are not content strategies. An effective content strategy follows a four-step framework that outlines who your audience is and how your content will reach them. The four phases to follow are 1) Research, 2) Creation, 3) Distribution, and 4) Optimization.
Researching your audience, your industry, and your channels is where you should spend the most time. To find the right fit for your content, create a matrix that ranks the audience fit against how competitive the channel is. High-engaging content best aligns with your audience and is distributed across channels with the least competition.
Your positioning will make or break your go-to-market strategy. A product-led company with a strong positioning will shorten its experimentation cycle to find an organic growth channel. This is because the quality of your positioning dictates how well your messaging resonates with your audience, and ultimately influences whether they will engage with your product.
To better position your product, follow a five-step framework to guide your messaging. Throughout your website, your copy should describe your target audience, the known pain point in the market, and your key differentiator. This article provides a great example of Dropbox’s positioning.
Successful blog posts have more than just a compelling header to capture your audience’s attention. It must hook a reader with an intro that describes 1) who it's for, 2) what they'll get out of it, and 3) why they should care.
The reader should be able to scan each section and highlight the key points without reading the entire text. Use listicles and featured snippets to create scannable sections for your reader. Then add visually rich elements to keep your audience engaged as they work through the entire post.
In the age of AI, software companies will have a harder time differentiating on the basis of product features alone. Instead, building a community is becoming the new moat. In this article, learn how Jasper took a community-led approach to growing the company.
Attracting your first few paying customers is always a struggle, especially when you don’t have a product built yet. This article walks through how the founder of HelpKit leveraged 'building in public' to win over an audience before launching his product.
SaaS companies must reduce their churn before accelerating their growth, or they risk filling a leaky bucket. This article walks through 82 methods to improve retention. (This is SaaS Weekly’s first guest author post on our blog page).
Programmatic SEO is a process to scale content creation by automatically generating landing pages through pre-populated templates. This article outlines how SaaS companies can leverage it to improve their inbound acquisition.
To achieve an efficient growth rate, B2B SaaS companies should double down on reducing their Customer Acquisition Cost (CAC) and increasing their Net Dollar Retention (NDR). At the top of the funnel, companies can leverage reverse trails in a PLG sales motion to keep their acquisition cost low. By allowing users to try premium features during the trial, companies are maximizing the upfront value for users and increasing the likelihood they will convert through usage paywalls.
In addition, the first step to increasing NDR is to reduce churn. Companies can use personalized messaging and reactive discounting to save at-risk customers. At the same time, companies should be targeting healthier customers to create expansion opportunities through upsells, upgrades, or cross-sells.
The first step to identifying profitable customers is segmenting who your best customers are. It’s common to run a cohort analysis by onboarding year to see how the net dollar retention has grown over time. Then you can double-click into specific cohorts or segments to look at the channel data.
When looking at the channel data, the goal is to identify the most profitable campaigns and channels that have shorter payback periods. Specifically, you want to evaluate which channel a customer came from, which campaign led them to convert, and how many of your best customers were acquired by them. Then compare the CAC and Lifetime Value (LTV) for each customer segment to view their profitability.
Customer micro-segmentation can help companies accelerate their pipeline and increase retention. By segmenting customers into smaller groups, you can increase conversion rates through personalized and targeted marketing campaigns that speak directly to an audience’s needs. These campaigns can help convert new inbound users and expand the wallet share of existing customers.
There are a number of different ways to segment customers, but the common characteristics are 1) behavioral data, 2) demographic data, and 3) psychographic data. The first step is to gather data through surveys, service records, or transactions to define each segment. Once defined, you can build personas to inform how to best personalize the marketing campaigns.
Net dollar retention measures the amount of revenue that you keep and expand in your existing customer base, this article breaks down the best practices to calculate the metric.