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Want to Be Profitable in the Subscription Economy?
The secret to profitability can be found through usage data. By “usage data” we mean data concerning customers’ usage of a subscription service. This metric is the basis for designing rate plans and...
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The Five Usage Milestones to Profitability in Customer Relationships
Creating profitable customer relationships requires understanding and monetizing customer usage. This road to profitability is connected by five usage milestones that must occur during the lifecycle of...
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New Data for Managing Profitable Customer Relationships
In the subscription economy, the most critical customer relationship question shifts from “Was the product shipped?” to “Was the service used?” With this shift, a metric called usage data comes to the...
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How Usage Data Drives Revenue Growth in the Subscription Economy
The “Use It or Lose It” dynamic in the Subscription Economy means that if your customers don’t use your service, you’ll lose the customer, the renewal and the revenue. The relationship between...
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State of Behavioral Targeting in B2B Media
In my most recent benchmarking project, I asked a series of B2B digital media brands if they had a behavioral database that the editorial, audience development and sales could use. All of them...
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The New Discipline in the Subscription Economy: Recurring Revenue Management
If you’re in the Subscription Economy, the most dramatic effects of trends like cloud computing and mobile won’t be felt in your company’s product line. The real disruption will be to your revenue...
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Mind the Gap: Avoiding Revenue Pitfalls in the Subscription Economy
In the book “Consumption Economics,” the authors describe a phenomenon called the “consumption gap” which is essentially the difference between a product’s capability and what a customer actually uses....
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Are Analytics Helping or Hurting Your Customer Success Operations?
If you implement scoring rules for identifying at-risk customers, you will want to be sure the rules actually help your customer success organization, i.e., that the rules provides a return on...
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Are Analytics Helping or Hurting Your Customer Success Operations?
If you implement scoring rules for identifying at-risk customers, you will want to be sure the rules actually help your customer success organization, i.e., that the rules provides a return on...
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Net Promoter Scores: The Good, The Bad, And The Ugly
The Net Promoter Score (NPS) is largely popular due to its successful implementation by companies such as American Express, Apple, and Southwest Airlines. While these scores provide insights on...
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Want to Increase Revenue? Stop Selling and Start Billing.
One of the best practices taking hold in the B2B subscription economy is the automatic renewal – issuing an invoice sixty days before renewals. The interesting effect of automatic renewals is to...
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The Truth Behind Recurring Revenue Growth in Subscription Economy
Goals for revenue growth change over the lifecycle of a company, in both magnitude and composition: Early stage startups want 100 percent growth or more. Late stage startups aim for 60 to 80 percent...
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In the subscription economy, 100% of profits come from existing customers
For the vast majority of recurring revenue businesses, existing customers don’t just fuel growth—they represent all of the businesses’ profits. Take the average customer relationship in the SaaS...
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Five Trends and Tipping Points in the Subscription Economy for 2014
With over 120 customers and more than $3.3 billion under analysis, we get to have a big-picture perspective here at Scout Analytics. We collaborate with our customers continuously on new strategies for...
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The 90/10 Rule of Adoption and Customer Success
Consider the first ninety days of a customer’s subscription. How much customer success can you predict based on that period? How much renewal risk gets created? More than you might think, as it turns...
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The Data Behind Adoption and Retention in the Customer Journey
In the last research alert, we talked about the “90/10 Rule of Adoption.” That was an observation based on our own real-world data which shows that after 90 days, a non-loyal user has only a ten...
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Customer Success + Exception Management = Revenue and Profit
There are many reasons to have a “standard” process for customer on-boarding, adoption, renewal, and the other phases of the customer lifecycle. But the truth is that every customer and user is...
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The Data Behind Customer Success and Marketing
You might not normally consider customer success when you’re thinking about marketing—but in the subscription economy, customer success can be critical to making marketing campaigns more effective....
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The Link Between Customer Success and CFO Happiness: It’s All About Gross Margin
If you’re a CFO of a SaaS business, one of your biggest challenges is gross margin. As we all know, gross margin is essentially the difference between the revenue for a subscription and the cost of...
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User Nurturing with a Twist—and Why It’s Critical to Customer Success
In a perfect world, we’d like to see all provisioned users become loyal users—but the reality is that even getting a majority of users to adopt (let alone become loyal users) can be a struggle. At the...
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