The 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
Read MoreUnderstanding Financial Reporting for SaaS Companies
By Eric Mersch
Summary In a growing trend, companies increasingly seek to educate their employees on financial reporting and incorporate an understanding of financial metrics into the company’s culture. Over the past twenty some years, the adoption of systems and collection of internal data generated within companies has grown exponentially. Today more than…Read More
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