Evaluating the ROI of Inbound Marketing Strategies for SaaS Companies
By Eric Mersch
SaaS companies that provide software services at low price points need to use low unit cost Inbound Marketing strategies because unit profit is so low. This dynamic is also common among Business-to-Consumer companies that offer low-cost apps with inbound marketing tactics to generate maximum awareness, adoption, and conversion among users….Read More
Read MoreThe Unit Economics of an Inside Sales Strategy at a SaaS Company
By Eric Mersch
The typical Small and Mid-Market SaaS company will use a portfolio of sales strategies designed to fit the average Annual Contract Value (ACV) of the sale. The most common strategies are Direct Sales, Inside Sales, eCommerce Marketplaces, and Partnerships. Some SMM companies may use all four depending upon their business…Read More
Read MoreThe Remaining Performance Obligation (RPO) SaaS Metric
By Eric Mersch
The Remaining Performance Obligation (RPO) reporting requirement arose from adopting ASC 606. This SaaS metric is defined as the sum of Deferred Revenue and Backlog. Deferred Revenue for SaaS companies is the non-cancellable contractual obligation to deliver the SaaS product for the period invoiced. The term Backlog refers to future…Read More
Read MoreDriving Success for Small to Middle-Market SaaS Companies
By Eric Mersch
There are many ways to classify SaaS companies, but differentiating companies based upon who their customers are presents the best approach for measuring performance and driving success for SaaS businesses. This is because using a customer-centric definition highlights the key operational differences that drive strategic decision making at these businesses…Read More
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