November 2015


Welcome to the November Cirrostratus Group Newsletter.


How good is your SaaS business at up-selling? The data continues to show that this is a key factor in faster and more profitable revenue growth. See my thoughts below. I will also be writing several blog posts over the coming months on how to increase your up-selling success.


Do you know of or work with a great SaaS product manager or product management team in the Boston area? Nominate them for the annual Boston Product Management Association PRODiE award. Nominations are due by December 4th. (And they don't really have to be SaaS products)


I am always interested in your plans for developing and offering cloud applications. Let me know what you're working on.

Paul Ressler
The Cirrostratus Group




Upsell on doorway and customers marching in to symbolize upselling consumers to higher level of product or service
A recent survey from Pacific Crest Securities shows the substantial impact that up-selling can have on your SaaS business including: 
  • Lower Cost to acquire revenue
  • Higher Growth

Per the survey the cost to acquire a dollar of ACV (Annual Contract Value) is much lower for up-sells, a median of $1.18 for $1 of ACV for new customers versus a median of $.28 for up-sells. 


Higher Growth companies have a lot more of the ACV coming from up-sells than lower growth companies as shown by this chart from the survey. 


Up-sells don't just happen automatically you need to have the right people focused on it with the right incentives. You also need to have your product structured and priced appropriately.


As a simple example the picture above is an up-sell offer from Constant Contact. From within the application they license a variety of images to use in newsletters. The convenience and price make them an attractive option to use.  


David Skok, general partner at Matrix Partners, has also done an analysis on the full survey. This survey is one of the best I know that covers a wide range of information about private SaaS companies of varying sizes. 


Contact Paul Ressler at the The Cirrostratus Group

In This Issue

The Cirrostratus Group Services

If you provide SaaS, Cloud or Managed Services, The Cirrostratus Group can help you...


 Through our industry experience and understanding of service delivery we can help you make sure that you have the people, processes and technology needed to provide profitable services that delight your customers.