Comments on: SaaS Economics 101c – SaaS adoption and switching costs – The double edged sword of data http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/ Streamlined angles on turbulent technologies Fri, 16 Jul 2010 22:54:01 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: vraniga, IP Applications http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10910 vraniga, IP Applications Thu, 29 Jan 2009 22:21:07 +0000 http://chaotic-flow.com/?p=250#comment-10910 I’d like to add a few thoughts on one of the main points mentioned; the idea that customer acquisition is one of the biggest challenges of SaaS businesses. I couldn’t agree more with both the problem and the proposed panacea – network automation. An important facet of network automation is billing and subscriber management automation. As more and more companies realize that displaying advertising simply isn’t going to work in a depressed economy (it was barely a monetization solution in a good economy), they begin to charge for their product. However, as companies begin to see the opportunities, they also see the difficulties in capturing those opportunities. Your billing should reflect what your business objectives are; if you want to reduce barriers to entry then variable pricing can make it easier for your customers to get started. Sometimes it doesn’t make sense for a customer to use your service if they are paying the same as a heavy user – resource based pricing helps alleviate that concern. Module based pricing allows you to target different segments and lets customers who want to pay more for increased services and functionality do so. While the variety of pricing models are endless, just as endless are the back-end difficulties for the company doing it themselves. Integrating with a subscription billing and management provider makes a lot of sense for SaaS providers. Here at IP Applications, our paramount concern is to take care of your billing and subscription management automation so your team can spend their time working on your core competency. I’d like to add a few thoughts on one of the main points mentioned; the idea that customer acquisition is one of the biggest challenges of SaaS businesses. I couldn’t agree more with both the problem and the proposed panacea – network automation.

An important facet of network automation is billing and subscriber management automation. As more and more companies realize that displaying advertising simply isn’t going to work in a depressed economy (it was barely a monetization solution in a good economy), they begin to charge for their product. However, as companies begin to see the opportunities, they also see the difficulties in capturing those opportunities.

Your billing should reflect what your business objectives are; if you want to reduce barriers to entry then variable pricing can make it easier for your customers to get started. Sometimes it doesn’t make sense for a customer to use your service if they are paying the same as a heavy user – resource based pricing helps alleviate that concern. Module based pricing allows you to target different segments and lets customers who want to pay more for increased services and functionality do so.

While the variety of pricing models are endless, just as endless are the back-end difficulties for the company doing it themselves.

Integrating with a subscription billing and management provider makes a lot of sense for SaaS providers. Here at IP Applications, our paramount concern is to take care of your billing and subscription management automation so your team can spend their time working on your core competency.

]]> By: Alex chriss http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10749 Alex chriss Mon, 29 Dec 2008 20:57:06 +0000 http://chaotic-flow.com/?p=250#comment-10749 Great post Joel - at Xignite you tout integration so easy a sales guy could do it. We have a similar philosophy at Intuit. We're building the Intuit Partner Platform (http://ipp.developer.intuit.com) to allow SaaS vendors to build apps that automatically integrate with a Small Businesses QuickBooks data. One click integration of all your back-office info. It doesn't get easier than that - but makes a huge different to adoption and attrition reduction. Great post Joel – at Xignite you tout integration so easy a sales guy could do it. We have a similar philosophy at Intuit. We’re building the Intuit Partner Platform (http://ipp.developer.intuit.com) to allow SaaS vendors to build apps that automatically integrate with a Small Businesses QuickBooks data. One click integration of all your back-office info. It doesn’t get easier than that – but makes a huge different to adoption and attrition reduction.

]]> By: Davis http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10672 Davis Sat, 27 Dec 2008 21:56:31 +0000 http://chaotic-flow.com/?p=250#comment-10672 Excellent insight Joel, data is a barrier to entry and cost of switching. The good news for the customer is that those barriers are much lower than they ever were with on-premises systems, and inversely it forces the marketer to extend the product out into the business process in ways that have not been done before to maintain loyalty - which is covered in your other posts. Thanks for this resource. Best regards, Davis Excellent insight Joel, data is a barrier to entry and cost of switching. The good news for the customer is that those barriers are much lower than they ever were with on-premises systems, and inversely it forces the marketer to extend the product out into the business process in ways that have not been done before to maintain loyalty – which is covered in your other posts. Thanks for this resource.

Best regards,

Davis

]]> By: Patrick http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10378 Patrick Thu, 18 Dec 2008 13:17:18 +0000 http://chaotic-flow.com/?p=250#comment-10378 Great post! I have enjoyed reading your latest post in regards to properly engineering and distributing SaaS solutions. We are starting to use them as guideposts to our company. I do hope there is more then just 5!...keep em coming. Great post! I have enjoyed reading your latest post in regards to properly engineering and distributing SaaS solutions. We are starting to use them as guideposts to our company. I do hope there is more then just 5!…keep em coming.

]]> By: Alain Yap, Morph Labs http://chaotic-flow.com/saas-economics-101c-saas-adoption-and-switching-costs-the-double-edged-sword-of-data/comment-page-1/#comment-10370 Alain Yap, Morph Labs Thu, 18 Dec 2008 10:37:34 +0000 http://chaotic-flow.com/?p=250#comment-10370 This is a wonderful resource, Joel! You are correct that there are important things that need to be done before attaining that goal of adoption especially for established companies. Here's hoping that 2009 be a reflection of SaaS accomplishment and adoption thanks to your inputs. Happy Holidays! Best. Alain This is a wonderful resource, Joel! You are correct that there are important things that need to be done before attaining that goal of adoption especially for established companies.

Here’s hoping that 2009 be a reflection of SaaS accomplishment and adoption thanks to your inputs.

Happy Holidays!

Best.
Alain

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