SaaS (Software as a Service) is a popular business model but it’s not easy to find a good read about it. After reading a few blog posts, I picked my top 3 of the week. They bring some actionable insights into: Churn Rate, principles of a successful SaaS company and Customer Relationships.
Grab yourself a nice cup of coffee and enjoy these three great articles.
A good article about SME’s / SMB’s Churn rate (the % of customers or subscribers who cut ties with your service). It’s a useful post even for those with little knowledge about churn.
The burning question answered in this article is – What is the acceptable churn rate for SMBs?
Answer: Somewhere between 2.5% and 5%+.
This is not a typical blog post about SaaS with tons of numbers and analyses. It’s kind of a memoir of a former Salesforce Engineer, Ron Pragides. It presents 7 principles of a successful SaaS company used by Salesforce. Each principle is described in detail with author’s memories (and pics) from working at Salesforce. Definitely a good read!
7 principles of successful startups by Salesforce:
- Your Value is Easy to Articulate.
- Rally Your Team Around a Cause.
- Know Your Customers. Make Them Heroes.
- Build a Platform.
- Make Trust Your #1 Value.
- Punch Above Your Weight Class.
- Take Risks and Ride the Wave.
Neil Patel, the Chief Evangelist of KISSmetrics wrote a good piece on how to perceive your SaaS. The article is packed with many insightful tips on how to improve and maintain your good customer relationships in order to grow your revenue and reduce churn. I must say it changed my perspective on the benefits of good customer experience.
Enjoy your reading!