For most SaaS companies, now is the time to carefully protect revenue. As lockdown and shelter-in-place measures begin to lift, attention must turn to the economic recovery. SaaS has a major role to play. SaaS improves the efficiency of existing businesses, makes it cheaper and easier to start new ones, and lowers the barriers to economic access. As a result SaaS companies need to combine two modes of thinking: protecting revenue today, whilst plotting growth tomorrow.
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Matt Henderson - Walking the SaaS tightrope: Protecting revenue whilst plotting growth
1. Walking the SaaS tightrope
Surviving the crisis and powering the recovery
June 2020
2. Surviving the crisis
1. Make payment collection seamless
2. Iterate pricing strategies
3. Minimise churn
Powering the recovery
4. Software as an Essential service
5. Software as infrastructure and tooling
6. SaaS in the verticals
7. 7
Customisable and comprehensive invoices
MAKE PAYMENT COLLECTION SEAMLESS
Hosted invoices get paid 3X faster
than typical invoices
Match your brand
Get paid in fewer clicks
Configure email reminders
Dynamically apply 3DS only when required
8. 8
9/10
UK customers use Bacs Direct
Debits to pay some or all of
their regular bills
14%
of UK payments are accepted
through
Bacs Direct Debits
Let your customers pay the way they’re used to
BACS DIRECT DEBITS
9. 9
Bacs Direct Debits now available on Stripe
BACS DIRECT DEBITS
£
STEP 1:
Mandate collection
STEP 2:
Charge
Bacs Direct Debits give you the flexibility to change the amount,
frequency, or timing of payments without requiring your customers
to re-authorise their purchase.
10. 10
The power behind Stripe’s Bacs integration
BACS DIRECT DEBITS
Pre-built Checkout
Skip the lengthy approval process
and design requirements of building
your own mandate collection with
our pre-built Checkout.
Powerful Billing
Save time and resources by using
our Billing APIs to design anything
from a simple flat-rate plan to tiered
and usage-based subscriptions.
Unified reporting
Centralise your payments and
reporting needs across payment
methods by using one unified
payments platform.
11. 11
Automate important billing processes
MAKE PAYMENT COLLECTION SEAMLESS
Trial periods
Discounts
Upgrades/downgrades
Prorations
12. 12
Evolve and grow your recurring revenue
Iterate your pricing strategies
Make payment collection seamless
Minimise churn
15. 15
Minimise churn
Make payment collection seamless
Iterate your pricing strategies
Evolve and grow your recurring revenue
16. 16
Reduce churn
Increasing retention with the right payments experience
● Require card details before the free trial
● Make it easy to up and downgrade
● Let (real) quitters quit
19. 19
Avoid involuntary churn
Automatically update expired credit cards
with the new number or expiry date,
without having to ask the customer
Card account updater
MINIMISE CHURN
31. 31
SAAS PLATFORMS ARE CHANGING THE FACE OF COMMERCE
Source: IDC.
Software is eating the world
● In 2015, less than ⅕ of the software
market ran on cloud architecture.
● Today it’s ⅓, and in 2023 will be
almost half.
● The market is already worth $500B.
Cloud penetration of total software market
0
2014
$200
$400
$600
$800
0
20%
30%
40%
50%
10%
2016 2018 2020E 2022E
Total software (cloud + traditional), $B
Cloud software penetration %
32. SaaS in the verticals
Vertical-specific SaaS offerings built using the infrastructure and tools
33. SaaS in the time of covid
The short-term challenges for SaaS companies in 2020
34. SaaS platforms can now fully monetize their ecosystem
34
PAYMENTS
CONNECT
PAYMENTS
BILLING
CAPITAL
TERMINAL
ISSUING
Subscription Revenue Subscription Revenue
+ Payments Revenue
Subscription Revenue
+ Payments Revenue
+ Issuing Revenue
+ Loan Interest Revenue
+ ...
SELLING SOFTWARE PAYMENTS ENABLEMENT COMMERCE ENABLEMENT
BILLING
CONNECTBILLINGBILLING
NEW REVENUE STREAMS FOR SAAS COMPANIES
35. With payments, Shopify can transform its business model
“
TOBI LUTKE
CEO, Shopify
“Stripe is taking the entire
complexity of moving
money around and solving
this in a very future safe
way.”
Source: The Logic, “Shopify’s Secret Growth Weapon, Stripe”. 2019
NEW REVENUE STREAMS FOR SAAS COMPANIES
36. SaaS platforms can now fully monetize their ecosystem
36
PAYMENTS
CONNECT
PAYMENTS
BILLING
CAPITAL
TERMINAL
ISSUING
Subscription Revenue Subscription Revenue
+ Payments Revenue
Subscription Revenue
+ Payments Revenue
+ Issuing Revenue
+ Loan Interest Revenue
+ ...
SELLING SOFTWARE PAYMENTS ENABLEMENT COMMERCE ENABLEMENT
BILLING
CONNECTBILLINGBILLING
NEW REVENUE STREAMS FOR SAAS COMPANIES
37. SaaS class of 2020
There is a history of generation defining companies emerging from economic crises
38. SAAS CLASS OF 2020
Era defining companies to have emerged out of crises
39. SAAS CLASS OF 2020
We expect big things of the SaaS class of 2020