Download to read offline
Uploaded bySaaStock
Matt Henderson - Walking the SaaS tightrope: Protecting revenue whilst plotting growth
The document outlines strategies for SaaS companies to survive economic crises and thrive in recovery, emphasizing seamless payment collection, innovative pricing strategies, and minimizing customer churn. It highlights the importance of SaaS as an essential service, particularly in both B2B and B2C contexts, and discusses the rapid growth of cloud-based software. Additionally, it addresses new revenue opportunities through integrated payment solutions and the evolution of SaaS platforms amidst the ongoing pandemic.
More Related Content
Similar to Matt Henderson - Walking the SaaS tightrope: Protecting revenue whilst plotting growth
Matt Henderson - Walking the SaaS tightrope: Protecting revenue whilst plotting growth
- 1. Walking the SaaStightrope Surviving the crisis and powering the recovery June 2020
- 2. Surviving the crisis 1.Make payment collection seamless 2. Iterate pricing strategies 3. Minimise churn Powering the recovery 4. Software as an Essential service 5. Software as infrastructure and tooling 6. SaaS in the verticals
- 3.
- 4. 4 Make payment collectionseamless Iterate your pricing strategies Minimise churn
- 5. 5 Make payment collectionseamless Iterate your pricing strategies Minimise churn
- 6. 6 Form design Mobile optimisation Localoptimisation Optimise your checkout flow to increase conversions MAKE PAYMENT COLLECTION SEAMLESS
- 7. 7 Customisable and comprehensiveinvoices MAKE PAYMENT COLLECTION SEAMLESS Hosted invoices get paid 3X faster than typical invoices Match your brand Get paid in fewer clicks Configure email reminders Dynamically apply 3DS only when required
- 8. 8 9/10 UK customers useBacs Direct Debits to pay some or all of their regular bills 14% of UK payments are accepted through Bacs Direct Debits Let your customers pay the way they’re used to BACS DIRECT DEBITS
- 9. 9 Bacs Direct Debitsnow available on Stripe BACS DIRECT DEBITS £ STEP 1: Mandate collection STEP 2: Charge Bacs Direct Debits give you the flexibility to change the amount, frequency, or timing of payments without requiring your customers to re-authorise their purchase.
- 10. 10 The power behindStripe’s Bacs integration BACS DIRECT DEBITS Pre-built Checkout Skip the lengthy approval process and design requirements of building your own mandate collection with our pre-built Checkout. Powerful Billing Save time and resources by using our Billing APIs to design anything from a simple flat-rate plan to tiered and usage-based subscriptions. Unified reporting Centralise your payments and reporting needs across payment methods by using one unified payments platform.
- 11. 11 Automate important billingprocesses MAKE PAYMENT COLLECTION SEAMLESS Trial periods Discounts Upgrades/downgrades Prorations
- 12. 12 Evolve and growyour recurring revenue Iterate your pricing strategies Make payment collection seamless Minimise churn
- 13. 13 Integrate fast, iteratefaster ITERATE YOUR PRICING STRATEGIES
- 14. 14Source: https://medium.com/@JUnderwood/saas-how-increasing-the-price-of-our-cheaper-plan-improved-sales-of-our-more-expensive-target-b051a8d1e534 $10/mo →$15/mo Increasing the price of our cheaper plan improved sales of our more expensive, target plan by ~100% Jack Underwood CEO, Circuit “ Experiment with pricing to grow revenue ITERATE YOUR PRICING STRATEGIES
- 15. 15 Minimise churn Make paymentcollection seamless Iterate your pricing strategies Evolve and grow your recurring revenue
- 16. 16 Reduce churn Increasing retentionwith the right payments experience ● Require card details before the free trial ● Make it easy to up and downgrade ● Let (real) quitters quit
- 17. 17 of subscription invoices failon first attempt 9%
- 18. 18 of subscription invoices failon first attempt 9% of invoices recovered on Stripe Billing 41%
- 19. 19 Avoid involuntary churn Automaticallyupdate expired credit cards with the new number or expiry date, without having to ask the customer Card account updater MINIMISE CHURN
- 20. 20 Upcoming Renewal EmailExpiring Card Email Failed Payment Email Automatic payment reminder and failure emails MINIMISE CHURN
- 21.
- 22.
- 23. OPPORTUNITIES AND CHALLENGES Inthe B2B space, SaaS providers have been vital to ongoing productivity
- 24. OPPORTUNITIES AND CHALLENGES Inthe B2C space, SaaS providers have provided essential care
- 25. 25 Stability Security Scalability Requirements of anessential service
- 26. 26 Requirements of anessential service Security Stability Scalability
- 27. 27 Scalability Stability Security Requirements of anessential service
- 28. Software as infrastructureand tooling The value in ‘undifferentiated heavy lifting’
- 30. 30 SOFTWARE AS INFRASTRUCTUREAND TOOLING Developer talent is a precious resource
- 31. 31 SAAS PLATFORMS ARECHANGING THE FACE OF COMMERCE Source: IDC. Software is eating the world ● In 2015, less than ⅕ of the software market ran on cloud architecture. ● Today it’s ⅓, and in 2023 will be almost half. ● The market is already worth $500B. Cloud penetration of total software market 0 2014 $200 $400 $600 $800 0 20% 30% 40% 50% 10% 2016 2018 2020E 2022E Total software (cloud + traditional), $B Cloud software penetration %
- 32. SaaS in theverticals Vertical-specific SaaS offerings built using the infrastructure and tools
- 33. SaaS in thetime of covid The short-term challenges for SaaS companies in 2020
- 34. SaaS platforms cannow fully monetize their ecosystem 34 PAYMENTS CONNECT PAYMENTS BILLING CAPITAL TERMINAL ISSUING Subscription Revenue Subscription Revenue + Payments Revenue Subscription Revenue + Payments Revenue + Issuing Revenue + Loan Interest Revenue + ... SELLING SOFTWARE PAYMENTS ENABLEMENT COMMERCE ENABLEMENT BILLING CONNECTBILLINGBILLING NEW REVENUE STREAMS FOR SAAS COMPANIES
- 35. With payments, Shopifycan transform its business model “ TOBI LUTKE CEO, Shopify “Stripe is taking the entire complexity of moving money around and solving this in a very future safe way.” Source: The Logic, “Shopify’s Secret Growth Weapon, Stripe”. 2019 NEW REVENUE STREAMS FOR SAAS COMPANIES
- 36. SaaS platforms cannow fully monetize their ecosystem 36 PAYMENTS CONNECT PAYMENTS BILLING CAPITAL TERMINAL ISSUING Subscription Revenue Subscription Revenue + Payments Revenue Subscription Revenue + Payments Revenue + Issuing Revenue + Loan Interest Revenue + ... SELLING SOFTWARE PAYMENTS ENABLEMENT COMMERCE ENABLEMENT BILLING CONNECTBILLINGBILLING NEW REVENUE STREAMS FOR SAAS COMPANIES
- 37. SaaS class of2020 There is a history of generation defining companies emerging from economic crises
- 38. SAAS CLASS OF2020 Era defining companies to have emerged out of crises
- 39. SAAS CLASS OF2020 We expect big things of the SaaS class of 2020
- 40.