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A few years ago, companies could afford not to care much about ensuring value to their customers. High switching costs from one provider to another, drawn-out procurement processes, locked-in billing and service agreements, all conspired to keep customers loyal and prevent them churning. But with the advent of Software-as-a-Service, month-to-month billing, and various other innovations, […]
05 Dec 2015
At the Matrix Partners’ SaaS meetup , David Skok, a five-time entrepreneur turned General Partner at Matrix Partners, gave a few insights on SaaS economics. In his talk, David explained that SaaS businesses are fundamentally different from traditional businesses, and have their own model and metrics. His hour long presentation can be read in detail – […]
15 May 2015
Running a company with a subscription software model (SaaS) is completely different to running a traditional software business. As the owner of a SaaS business, you’re reliant entirely on recurring revenue, which can come over a period of months or possibly years if the lifetime value of your customer is high. It’s expensive to acquire […]
12 Jun 2014