saas 101: metrics & best practices
TRANSCRIPT
![Page 1: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/1.jpg)
SaaS 101: Metrics & Best Practices
March 13, 2015
Nicolas Wittenborn, Point Nine Capital
![Page 3: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/3.jpg)
Founded 2011 in Berlin
Investing €100,000-1,000,000
Raised €45M
Team of 8
![Page 4: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/4.jpg)
Who’s Point Nine
Vancouver
Washington D.C
Auckland
Edmonton
New York
San Francisco
BerlinRiga
Point Nine ’s SaaS
Paris
Barcelona
Warsaw
![Page 5: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/5.jpg)
III.
Best Practices
II. Important SaaS Metric
s
I. What’s SaaS?
![Page 6: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/6.jpg)
I. What’s SaaS?
![Page 7: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/7.jpg)
aaSSoftware as a Service
No installationContinuos updates
Accessible from everywhere
![Page 8: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/8.jpg)
Why VCs like SaaS companies
Recurring revenues
High margins
Global scale from day 1
![Page 9: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/9.jpg)
The SaaS market is quite ‘frothy’
which might change soon**
* Data analysis by Tom Tunguz **Jason Lemkin: ’Unfortunately, SaaS Start-Up Valuations Are About To Fall by 50%’
?
*
![Page 10: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/10.jpg)
Global SaaS Market SizeROW21%
France3%
Canada4%
Germany6%
UK6%
US60%
Global SaaS Market Volume*
shows strong US bias
* Siemer's SaaS Industry Report 2013
![Page 11: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/11.jpg)
Founded in Copenhagen 2007
Move to US HQ in 2009
IPO ($ZEN) in 2014
Europe still produces great SaaS companies
![Page 12: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/12.jpg)
II. Important SaaS Metric
s
![Page 13: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/13.jpg)
Monthly Recurring Revenue(MRR)
![Page 14: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/14.jpg)
negative churn
Extension MRR > MRR churn
![Page 15: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/15.jpg)
Churn & Retention: Cohort Analysis
Yours truly: ‘Cohort Analysis Q&A’
![Page 16: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/16.jpg)
LTV
CAC
![Page 17: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/17.jpg)
III.
Best Practices
![Page 18: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/18.jpg)
Incentivised referrals are a great ‘growth hack’*
* if you have a suitable (freemium) model
![Page 19: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/19.jpg)
Get to WOW! fast*
* a great on-boarding can increase conversions significantly
![Page 20: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/20.jpg)
???
You might be too cheap!
* if you provide real value & haven’t raised prices since you launched
???
Price increase
![Page 21: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/21.jpg)
Valuable content = King
One time effort, long time effect
![Page 22: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/22.jpg)
There is no silver bullet
Just the Long, Slow, SaaS Ramp of Death*
* Gail Goodman: How to negotiate the long, Slow, SaaS Ramp of Death
![Page 23: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/23.jpg)
At least until now…
Hyper-growth?
Outlook: SaaS 2015
* Edited Social + Capital Chart
![Page 25: SaaS 101: Metrics & Best Practices](https://reader034.vdocument.in/reader034/viewer/2022042512/55a524f01a28abd40e8b45e2/html5/thumbnails/25.jpg)
Ressources•Blogs:
• David Skok http://www.forentrepreneurs.com/ • Tom Tunguz http://tomtunguz.com/ • Christoph Janz http://christophjanz.blogspot.de/ • Jason Lemkin http://saastr.com/
•Slides: • 9 Worst Practices in SaaS Metrics: http://www.slideshare.net/PointNineCap/9-worst-practices-insaas-metrics • Siemer SaaS Industry Report 2013: http://www.slideshare.net/SiemerAssoc/sa-saa-s-industry-report-summer-2013-25007137?ref=http://www.siemer.com/research/summer-2013-saas-industry-report/
•Secrets to raising VC (Mamoon Hamid): http://www.slideshare.net/03133938319/saastr •More:
• Quora SaaS topics: http://www.quora.com/Software-as-a-Service-SaaS • Long, slow, SaaS Ramp of Death: http://pawel.ch/post/71104054756/the-long-slow-saas-ramp-of-death-i-have-just • Cohort Analysis Q&A: http://heyni.co/post/79862265851/cohort-analysis-a-practical-q-a • ‘Unfortunately SaaS Startup Valuations about to fall by 50%’: http://saastr.com/2014/04/29/unfortunately-saas-start-up-valuations-are-about-to-fall-by-50/
x