One interesting nuance we learned about the SSO (at Sentry) is that it's a popular free/low tier feature but not as popular on Free Trial. You as an org either need it or not. No point doing a Trial on it.
"stop gating the features that make your customers successful" This is a point. I like how it flows down through the other functionality you describe. At Ibbaka we recently came to the same conclusion for SSO and it is now included in our standard offer.
I would love to see a post from you on CLTV as key metric. It combines both ARR growth and churn and is this an integrative metric. In more and more of our work the focus is to design and evolve pricing that leads to higher aggregate CLTV.
Thanks Steven! The idea is definitely to maximize CLTV even if that means starting at a lower price point and scaling up over time. That said, I’m not fully sold on CLTV as a metric in SaaS because it can theoretically be infinite (with net negative churn). We’re seeing PLG + UBP companies expanding their customers at faster and faster rates over time.
To me that suggests a need for more accurate models for measuring (and predicting) CLTV. Aggregate numbers and averages can be deceiving. There is a cap for most solutions inside any account, so one could apply a limit function to each account. Worth some additional thought and research for sure.
One interesting nuance we learned about the SSO (at Sentry) is that it's a popular free/low tier feature but not as popular on Free Trial. You as an org either need it or not. No point doing a Trial on it.
Very interesting insight - thanks AJ!
"stop gating the features that make your customers successful" This is a point. I like how it flows down through the other functionality you describe. At Ibbaka we recently came to the same conclusion for SSO and it is now included in our standard offer.
I would love to see a post from you on CLTV as key metric. It combines both ARR growth and churn and is this an integrative metric. In more and more of our work the focus is to design and evolve pricing that leads to higher aggregate CLTV.
Thanks Steven! The idea is definitely to maximize CLTV even if that means starting at a lower price point and scaling up over time. That said, I’m not fully sold on CLTV as a metric in SaaS because it can theoretically be infinite (with net negative churn). We’re seeing PLG + UBP companies expanding their customers at faster and faster rates over time.
To me that suggests a need for more accurate models for measuring (and predicting) CLTV. Aggregate numbers and averages can be deceiving. There is a cap for most solutions inside any account, so one could apply a limit function to each account. Worth some additional thought and research for sure.