Hi folks, welcome back to SaaS Roundup. I have some excellent reads for you this week, starting with the continuation of our SaaS Metrics Refresher course — this time we're covering the topic of customer lifetime value (LTV). Check it out if you want to understand why it's often the most controversial SaaS metric.
⚡️ Micro updates
Qualtrics filed for IPO. Here's a good analysis of their S-1 filing from Spark Capital's Alex Clayton.
Have a good one, Ed @ ChartMogul
SaaS Metrics Refresher #5: Customer Lifetime Value
Testing in marketing today is commonplace — we test everything from the flow of a landing page to the color of a signup button. But when it comes to pricing, things aren't so simple. Steven walks us through some approaches to testing your pricing in this excellent post.
"If you are using a tiered architecture, make sure you understand the intended role of each tier and test that it is actually performing that role."
Is 2019 the year when we start to see more AI-powered SaaS analysis? The potential here seems huge.
"According to the authors of “Leading on the Edge of Chaos”, a 2% increase in customer retention (or decreasing churn) is equivalent to 10% reduction in costs. so no wonder SaaS companies (and companies that care about customers) pay a lot of attention to Churn Analysis."
This post continues the topic of "non-VC-compatible" companies, as first explored by Clement back in 2017. This is a nice broad view of the increasing number of financing options that exist for SaaS startups.
"If you’re wondering why a VC is writing about that topic, the short answer is that I believe the financing environment for startups (especially in SaaS) is evolving fast due to the “commoditization of capital” (more and more capital available). And if you want to stay in business, you need to understand changes instead of fighting them back."
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