Corporate finance executive and MBA/CPA with over 16 years of progressive experience in finance and operational management within small technology firms to global multi-billion dollar organizations. Demonstrated ability to link the key metrics between finance and operations that drive corporate transparency and real time fact-based decision making. Strong background in developing financial infrastructures necessary to support organizations and management teams. Check out my latest Excel models at TheSaaSCFO.com. Core Qualifications: SaaS Financial Statement Modeling Accounting & Financial Management Mergers & Acquisitions Growth Strategy Development Financial Analysis & Reporting Staff Management & Development Performance Measurement International Operations
With a low price point, I think you might have trouble converting them to a subscription. Like you mentioned, I think you need to offer a perk or repackage the product with a new name and a few more hooks (features, better value) to get them to convert to a new pricing model which would be more expensive for them in the long run.
In my experience and industry, it helps to be in the ballpark as the competitors but not the same. If you are much higher, you better have a great story and message. If you can't differentiate your product for the price sensitive buyers then it is hard to stay in the running. Pricing is a hard topic and you might have to experiment a bit.
I agree. I live in a long sales cycle world for software subscriptions so the typical monthly SaaS metrics don't tend to tell me much or work.
I think the same metrics are important but you might calculate them on different time horizons.
I still look at net churn by customer and dollar, ARR, CAC, LTV, ACS, and more.
You can download a lot of these Excel templates for free at my blog. www.TheSaaSCFO.com.
I see Sales and Revenue as the same thing. I think when you say Sales you are referring to Bookings? We track bookings (signed contracts) and GAAP revenue by customer. I think it is important to track both and you will be asked for your average ARR or MRR per customer and even a waterfall of GAAP revenue by customer.