“What the data reveals about how to make SaaS secret sauce” via PandoDaily
A thoughtful analysis of the economics of price, cost, and churn across SaaS vendors. The decision on which distribution strategy to employ weighs heavily on choices made on price, cost of acquisition, sales & marketing expenses, and churn rates.
Looking at this chart would lead one to believe that there are only three strategies one could employ, which is borne out by the historical data. However, this is also where the best opportunity lies to upend the entire SaaS distribution model.
Can you have a predominantly low touch distribution strategy and successfully sell high-end technologies? I believe this indeed possible. In fact, no one believed complex and expensive database technology could be sold over the phone by inside sales reps, then an Oracle executive proved that it could, accelerating the adoption of RDBMS across the enterprise.
Source: pandodaily.com
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