9 x SaaS: Principles dedicated to the software industry

In most of the business comparative analyzes that target software companies’ activity versus other industries, the first listed outlines trend patterns, seasonal curves, and personalized growth principles that are not often found in other situations.

Companies that develop software products that have as a business model sales processes such as Software as a Service (SaaS) focus their activity and results on consumer purchasing more than other industries do. The motivation is due to the cost of purchasing a user, superior to that of a consumer of consumer products or services, such as the fact that notoriety growth strategies are not as effective for this product range.

  1. Therefore, the metrics that define customer satisfaction are essential as part of marketing and sales processes.
  2. The most important such metrics that software companies take into account are: the number of visitors to the site where portfolios are presented, the number of leads generated for demos, as well as the number of signed contracts for deployments. Also, the correct setting of a conversion rate is part of the current and dynamic strategy of each software company.
  3. Most companies choose to invest significant budgets in acquiring an important portfolio of consumers at the expense of rapid growth strategies and tactics, while other brands neglect the interest in user satisfaction, as it is a field that does not involve communication with emotional effects.
  4. According to a study published on Digital-MediaStream.co.uk last year, less than 50% of companies that develop Software as a Service have increased the budgets dedicated to acquiring and retaining their client portfolio.
  5. Generally, an average company that develops SaaS solutions generates 16% of total annual revenue only from upselling strategies to existing users.
  6. Companies with a very high turnover, over 75 million US dollars ae, allocate on average a 2.5 times higher budget than the small and average for upselling activities (28% versus 11%).
  7. One of the most useful formulas used in the context of calculating the cost of a user’s acquisition is given by the sum of the budgets allocated to marketing and sales activities / the number of new clients. One of the notable issues of this formula is given by the costs a company has with the human resources involved in these processes, as well as the associated operational costs.
  8. The average duration of the contracts signed by the companies having software as a Service portfolio is 1.3 years, with a 7 months advance payment term in 2016. According to a comparison with the previous year, the average duration of the contracts decreased by to 1.5 to 1.3 years and payment terms have increased by one month.
  9. On average, companies that develop SaaS software allocate 6 hours a day to define cost strategies for each solution.

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  • Joe Doe Reply

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    June 28, 2016 at 1:03 pm
    • Joe Doe Reply

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      June 28, 2016 at 1:04 pm
  • Joe Doe Reply

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    June 28, 2016 at 1:04 pm

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