SaaStr Annual 2024: How to Maximize Your Revenue: Strategies to Stop Leaving Money on the Table with Capchase

Explore strategies to expand your TAM and automate collections to prevent revenue loss from unpaid invoices. This session will also offer solutions for mitigating the impact of increased competition and scrutiny on contract decisions, which have lengthened sales cycles since 2021 and significantly affected metrics like Customer Acquisition Cost (CAC), CAC payback, retention, and annual contract value (ACV).

1. How to Maximize your Revenue: Stop leaving money on the table Maria Pereda Head of Partnerships Capchase Andrew Berger VP of Revenue Capchase

2. What’s stopping you from maximizing your revenue? Increased number of stakeholders Longer sales cycles, added scrutiny on contract decisions, high risk deals = Increased competition Heavy discounting, losing deals to terms, churned customers = Inefficiencies in process Revenue leakage, high CAC = Renewal delays Downsells to avoid churn =

3. things you should address in today’s B2B market to maximize revenue 5

4. Offer flexible terms

5. Customers want to buy on their own terms Sales cycle lengths continue to increase New deals are taking 50% longer to close, than a year ago Average contract value and sales cycle correlation ACV < $5K = 40 days ACV > $100K, the cycle = 170 days Discounting for the sake of closing Average annual contract discount: 10-20% Average discount for multi-year contracts: 10-30% A surplus of tech options in today’s market gives customers the negotiating power

6. Make it easy to buy from you. Lean into product marketing to ensure you sell your value and know your competition Don’t be so quick to discount, understand the real objections first and bring in all stakeholders early Utilize innovative payment solutions such as buy now, pay later (BNPL) to offer the best buying experience without sacrificing revenue or losing deals to terms Recommendations Case study A: A $160M+ ARR AI-powered app-building platform started offering flexible terms and saw an increase in conversions on stagnant deals and closed more pipeline. 15% Increase in conversion stalled deals $2.5M+ In pipeline closed 70+ Deals closed Impact on business metrics in first few months

7. Focus on GTM efficiency

8. Customer acquisition costs are on the rise Companies are seeing a smaller revenue return on their marketing spend. CAC has outpaced LTV, having nearly halved. The median ARR per employee has increased by $20,000 from 2021 showing the focus has shifted to efficient growth. We analyzed financial health and growth data across thousands of companies to see how current trends are impacting companies differently based on their size

9. Recommendations Focus on efficient CAC spending, higher retention, and effective pricing to drive a healthy LTV/CAC. Don’t compromise growth by cutting GTM spend to reach profitability, instead consider alternative funding partners to efficiently fuel those initiatives. Incorporate tools that make it easier for sellers to sell. Make sure new tools seamlessly integrate with your core systems. If your product can support more markets, don’t let price be a barrier to entry.

10. Minimize revenue leakage

11. Tighten collections Companies with ARR between $1 million and $9.9 million face the longest DSO and a greater risk of revenue leakage as unpaid invoices get lost or forgotten. 30% increase in Days Sales Outstanding from 2021 (from 31 to 40 days) Days Payable Outstanding has increased for all company sizes Cash Conversion Cycle has been steadily increasing since 2023 49% of invoices become overdue

12. Invest in quality tools for collection operations & take the burden off the team with automated workflows. The more manual the process is, the more room for error. Recommendations Case study B: A $6M+ ARR healthcare technology company invested in a high quality collections software to make their teams more efficient and take the burden off current staff resources. 50% Increase in customer size $1.5M+ In pipeline closed +130+ Deals closed Impact on business metrics in first few months

13. Invest in customer retention

14. Retention fuels real growth Monthly churn rates have increased compared to 1.1% in 2020 3.4% Renewals are taking 10% longer to close compared to last year (53 days on average) 10% Companies are using 200-300+ software applications today.

15. Get ahead of renewals: Automated deal creation with notifications in advance. Delight your customers: if they aren’t using your tool consistently they won’t renew or expand. Don’t confuse price with payment terms: make sure you’re solving the right problem. If cash flow is the problem, a discount may not address it If price is the problem, refocus on the value Recommendations Case study C: A nearly $300M ARR data experience public SaaS company added a new payments solution to save current customers by offering flexible terms at renewal. 30% Faster growth rate capturing stagnant deals $8M+ Additional pipeline closed +100 Leveraged deals Impact on business metrics in first few months

16. Leverage your network

17. Sometimes it’s about who you know 40% of B2B buyers use social media to research before making a purchase 54% of B2B marketers generate leads from social media 39% of B2B companies have seen revenue from social media 31% of B2B professionals say social selling has helped them build stronger relationships with clients

18. Recommendations With AI and tools, SaaS buyers are overwhelmed with options. Focus on building brand trust and letting word of mouth sell for you. Leverage and build an advisor network Master the art of social-selling Invest in partnerships Turn to the experts - influencers, takeovers and more!

19. Key Takeaways

20. Key takeaways The biggest opportunity is deals not closing due to payment terms and pricing. Don’t try to put more people on billing and collections. Invest in automation solutions to avoid errors and increase efficiency. Incorporate tools that make it easier for sellers to sell . Make sure new tools seamlessly integrate with your core systems. NPS is a great indicator you’re doing something right, but NRR is the indicator that it’s paying off. Social selling, advisors and partnership networks can set you apart significantly from the competition.

21. Meet us at Booth #SG201

22. UP NEXT: The SaaS Benchmarks for Growth & How Pricing Can Accelerate This in 2024 and Beyond Andrew Davies Chief Marketing Officer Paddle Vivien Shao Pricing Consultant Price Intelligently by Paddle