SaaS

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An Inc42 x LogiNext initiative to equip founders with the know-how of crucial terms, concepts and best practices in SaaS.

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A
Startup Terms Beginning With 'A'

Annual Contract Value

ACV measures the average annualised revenue per subscription contract minus one-time fees.

Annual Recurring Revenue

ARR is a metric used to measure the total revenue that a SaaS company expects to generate from its subscriptions.

Average Revenue Per Account

ARPA measures SaaS subscription income over set periods, typically monthly or annually.

C
Startup Terms Beginning With 'C'

CAC Payback Period

CAC payback period measures how quickly a company recovers its customer acquisition costs to assess acquisition success

Contraction MRR

Contraction MRR helps SaaS companies pinpoint revenue losses due to subscription downgrades and cancellations.

Cross-Selling

Cross-selling is a sales strategy where companies offer additional products/services to existing customers to increase revenue.

Customer Lifetime Value

CLTV means the total expected sales a customer will generate throughout the business relationship with a company.

Customer Onboarding In SaaS

Customer onboarding in SaaS is all about showing customer the ropes, providing them the tools they need and ensuring CX.

Customer Segmentation

Customer segmentation categorises SaaS company’s customers based on parameters like tech, products and business goals.

E
Startup Terms Beginning With 'E'

Enterprise SaaS Sales

Enterprise SaaS sales target big corporates with complex needs, multiple decision-makers and extended sales cycles while offering high-value solutions.

Expansion MRR

A metric used to measure the additional MRR generated by existing customers in a given month

G
Startup Terms Beginning With 'G'

Gross MRR Churn Rate

Gross MRR churn rate is used by SaaS companies to estimate revenue losses from service downgrades.

H
Startup Terms Beginning With 'H'

Hybrid SaaS Sales

A hybrid SaaS sales model blends traditional sales with product-led growth for seamless CX and software integration as tech needs evolve.

M
Startup Terms Beginning With 'M'

MVP In SaaS

A simplified software version with essential features for user feedback to validate the core product.

N
Startup Terms Beginning With 'N'

Net Promoter Score

Net promoter score in SaaS measures customer loyalty based on their likelihood to recommend a product or service, scored on a 0 to 10 scale.

P
Startup Terms Beginning With 'P'

Product Qualified Account

Product qualified account is a client using a product that suggests the user is getting value out of an offering and ready to buy more

Product Qualified Lead

A product-qualified lead is someone who experienced value using a SaaS product through a free trial or limited features indicating potential conversion.