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How to Build a Successful Subscription Business Model

Up and Running

Gartner predicted that “By 2020, all new entrants and 80% of historical vendors will offer subscription-based business models.” For the information and technology industry, subscription models are now a core business model. Why implement a subscription service? Conduct market research.

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Conversion, retention and churn benchmarks

VC Cafe

They encompass the effectiveness of marketing (the startup’s ability to reach and resonate with target customers) and stickiness (the product’s ability to deliver value to customers over time). In this post, we’ll take a closer look at the benchmarks on conversion, retention and churn for the key business models.

Retention 109
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Product Design for SaaS Startups: Best Practices and Examples

ReadWriteStart

The product design team helped them identify their users’ pain points and redesign the product to provide a more seamless customer experience. It makes the product more user-friendly and can also help build trust with customers and differentiate the product from competitors in the SaaS market.

Design 105
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When Customers Make You Smarter

Steve Blank

We talk a lot about Customer Development, but there’s nothing like seeing it in action to understand its power. Here’s what happened when an extraordinary Digital Health team gained several critical insights about their business model. The class has talked to ~2,200 customers to date. A Five-sided Market.

Customer 323
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Acquire New Users by Adding Growth Hacking to your Marketing Strategy

ConversionXL

Growth hacking is a practice that aims to acquire as many customers as possible while spending as little money as possible. The faster this process can be repeated, the more likely they’ll find scalable, repeatable ways to grow the business.”. Rather than run marketing campaigns to pull customers away from its rival, it experimented.

Retention 113
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Visualizing the Interactions Between CAC, Churn and LTV

A Smart Bear: Startups and Marketing for Geeks

If you like this, go see his Shockwave Innovations blog ) Anyone that has taken an accounting class or learned basic business financials knows the interaction between key elements of a P&L (revenue, cost, expense) and a balance sheet (assets, liabilities, equity). At that point, you’ve recovered the cost to acquire the customer.

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2013 Pacific Crest SaaS Survey

For Entrepreneurs

We worked together with Pacific Crest, an investment banking firm with a specific focus on SaaS, to survey 155 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. Business Model SaaS CAC churn'