There are many reasons why great SaaS products fall short of their own high expectations – some are ahead of their time while others are simply too late.
However, when we’re asked what sets successful SaaS companies apart, we often come back to one key point – the importance of customer success.
In the past, we’ve received proposals for tech solutions costing over £100k pa.
But when we dive into the specifics, we sometimes find a flawed onboarding process, where customers are expected to onboard themselves to a complex solution.
That’s fine in some cases. But although this ‘self-serve’ model can create ultra-high margins, it can also create frustration and subsequent churn among customers, which is far more costly to a business.
Net Revenue Retention is undervalued in the early stages of company growth, but it is something the investment world is laser focused on.
This realisation is leading to a more valuable hybrid model that combines off the shelf products with a level of curation or consultancy usually reserved for bespoke options.
While the additional resource is a business cost, lower churn and higher upsell leads to stickier revenue.
With the demand for new solutions growing, businesses shouldn’t be afraid to show the world that they’re willing to spend to keep Net Revenue Retention high.
– Pete Carway, Investment Director
- The SaaS market is currently worth an estimated $145.5 billion dollars (Statista)
- Over three quarters of executives say they’re either re-evaluating or taking greater steps towards digital transformation and automation (EY)
- Worldwide end-user spending on public cloud services could grow 23.1% in 2021 to $332.3 billion (Gartner)