In SaaS businesses, most of the time the income comes from recurring purchases, that is, we adapt to a pricing model in which it is usual to make purchases on an agreed basis (monthly, quarterly, yearly…) for the use of an application. This is why the average ticket of SaaS customers is much more stable and we can make a more effective estimate.
What is known as an average ticket?
The average ticket is one of the most fundamental metrics that exist for businesses that are just starting out or that have not yet fully optimised their data collection.
There are many more metrics, which we have collected in the next post.
Going back to the average ticket in SaaS, we get it with an easy division between the total amount of revenue we have had divided by the number of users who have made those purchases.
For example, if in our SaaS we have the following subscriptions:
- Basic version (10€): 10 users
- Pro version (50€): 7 users
- Enterprise version (100€): 3 users
We have a total of 20 users, who have generated between all of them 750€. That is why we have an average ticket of €37.5.
This figure simply means that each user that we have in our application has brought us €37.5 during the time we have made this account.
Tips to improve the average SaaS ticket
In the previous point we have already observed how the average ticket is not a difficult formula to calculate, therefore, the variations that we can make on the final result are going to be on two concepts.
By this we mean that to increase the final number we can only either increase spending or decrease the number of customers. Therefore, I think it is obvious that we don’t want to lose customers, so we will have to increase the upper part of the division. So, how do we increase the revenue of each consumer:
1. Boost your most profitable products
It is key that when making your pricing strategy, you make it attractive to the consumer. In other words, what you need to do is to guide them on the path of purchase towards the product that you think is the best and most profitable for your business.
In SaaS products you must have a defined strategy that makes the cheap options of your product make customers want to have more functionality and at the same time demonstrate that your tool is powerful and effective.
It is one of the most used tools to increase your average ticket. It is common that your product can be complementary to others, so you should be able to take advantage of that.
In addition to promoting your company’s most profitable product, you must follow an upselling strategy or a strategy to increase subscriptions. By this we mean that as you have data you have to optimise the follow-up of the customers that you think can increase their share.
When you are clear about which customers should be contacted, automate that action so that it can be done productively. You can contact them in the way you find most useful, such as by mail, call, SMS…
4. Rewarding loyalty
As you generate the necessary data, you will notice that you have customers with long-term subscriptions. In all walks of life, we like to be treated in a special way and a good way to sift that special treatment is through loyalty.
Offer them discounts and upgrades that are special to them. This will keep them aligned with the company and surely, improve in the future. A good reward can be a free trial of your best SaaS option.
5. Special offers
To incentivise the objective of increasing the average ticket of your SaaS, it is essential to make it easier for customers to buy more expensive products. That is why we can make special offers to get them to try the products.
An example might be, next month, for €1 more, try the premium version. This will get customers to take the plunge and try a more advanced version and possibly realise that you have interesting options that they might want to have.
In a company it is always easier to get customers who have already bought and are inside the company to leave more money on average than to get new customers. The effort for the former is much less than the latter.
That is why the advice we have given above is even better for a SaaS product. The average ticket in SaaS is very relevant because the product is already created and optimised, i.e. it does not cost us anything to have more customers or to increase the price. Therefore, we must get customers to use our product intensively, getting the most out of the expensive development work done to develop the SaaS.
If you need further assistance in marketing your SaaS products, please do not hesitate to contact us.