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.

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

3. Surviving the crisis

4. 4
Make payment collection seamless
Iterate your pricing strategies
Minimise churn

5. 5
Make payment collection seamless
Iterate your pricing strategies
Minimise churn

6. 6
Form design
Mobile optimisation
Local optimisation
Optimise your checkout flow to increase conversions
MAKE PAYMENT COLLECTION SEAMLESS

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

13. 13
Integrate fast, iterate faster
ITERATE YOUR PRICING STRATEGIES

14. 14Source: https://medium.com/@JUnderwood/saas-how-increasing-the-price-of-our-cheaper-plan-improved-sales-of-our-more-expensive-target-b051a8d1e534
$10/mo → $15/mo
Increasing the price of our cheaper
plan improved sales of our more
expensive, target plan by ~100%
Jack Underwood
CEO, Circuit
“
Experiment with pricing to grow revenue
ITERATE YOUR PRICING STRATEGIES

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

17. 17
of subscription invoices
fail on first attempt
9%

18. 18
of subscription invoices
fail on first attempt
9% of invoices recovered on
Stripe Billing
41%

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

20. 20
Upcoming Renewal Email Expiring Card Email Failed Payment Email
Automatic payment reminder and failure emails
MINIMISE CHURN

21. Powering the recovery

22. Software
as
an
Essential
Service

23. OPPORTUNITIES AND CHALLENGES
In the B2B space, SaaS providers have been vital to ongoing productivity

24. OPPORTUNITIES AND CHALLENGES
In the B2C space, SaaS providers have provided essential care

25. 25
Stability
Security
Scalability
Requirements of an essential service

26. 26
Requirements of an essential service
Security
Stability
Scalability

27. 27
Scalability
Stability
Security
Requirements of an essential service

28. Software as infrastructure and
tooling
The value in ‘undifferentiated heavy lifting’

30. 30
SOFTWARE AS INFRASTRUCTURE AND TOOLING
Developer talent is a precious resource

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

40. Thanks