You may need to run at a loss when first starting out but you’ll need to reign in your losses even if you are still trying to grow. Minimize churn with up-sells, upgrades, viral growth, reducing customer acquisition costs and improving gross profit margin.
Great presentation, from CEO of constant contact at Business of Software about the challenges of getting a SaaS product company to grow. She describes their roadblocks and give actionable advice for your business.
Evaluating a SaaS idea? Check out this list.
The difference between software and SaaS is that it is delivered over the Internet which is the source of its economic value and competitive advantage.
WooThemes changed their pricing structure to be more sustainable causing a lot of interesting conversation on pricing and business models. Excellent case study and concrete example of concepts discussed in other articles in this issue.
Three levers to calculate your SaaS growth ceiling: customer acquisition rate, customer lifetime value and viral customer network effects. Increase your growth ceiling by acquiring customers faster and increasing their lifetime value. Churn scales with size of your customer base though so always limits you so counter it with positive viral growth.
Marketing and Traffic
Great list of ideas for driving traffic to your site. Even though you may have heard of many (all) of the ideas before, having them all in one place can serve as a great brainstorming tool. Get your team together and go through the list one by one and see how many ideas you can come up to put each into action. Write them all down with out criticism and then go back revisit all your suggestions and choose the most promising ones.
Everyone is a marketer. Learn to see the difference between good and bad and speak up.
A frame work that will change the way you think about your business in four parts: Do Framework, Content Strategy, Marketing Strategy and a surprise.
Idea validation is a popular concept these days but something take time, focus and vision. Iterating too quickly may not allow products to develop as necessary.
Don’t worry about scaling (or even implementing) things at first. Do things manually, the marketing, the sales, the work, the support, to better know your customer and their problem and come up with a better fitting solution.
An MVP is not a cheaper, less full functioning version of your final product. It is a way to learn before building your final product. Don’t focus on a stripped down version of your poduct but rather a manual version to see if the product is needed at all.