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You can, but the thing that you get as a SaaS company in exchange for that 3 year discount is the certainty that you'd have a customer for 3 years. There is no
by some_random 1y ago
You can, but the thing that you get as a SaaS company in exchange for that 3 year discount is the certainty that you'd have a customer for 3 years. There is no longer an incentive to offer the discount.
- bilekas 1y agoBut there is once you remain competitive, if the reason for people staying on your platform is because they're locked in for 3 years then you're not offering a good enough service as others. This opens the market to competition who will offer better services or prices. The free market at work.
- some_random 1y agoFirst off, we all know that unfortunately just offering the best product is not enough to guarantee that a customer will pick you and stay with you. Secondly, because of the use of ARR as a key metric that lock in has an extra benefit to the SaaS provider in dealing with investors.
- bilekas 1y ago> Secondly, because of the use of ARR as a key metric that lock in has an extra benefit to the SaaS provider in dealing with investors I'm sorry to the investors but I'll still prioritize users experience in the saas lifecycle.
- some_random 1y agoSure, but again the issue is that this is the incentive behind those discounts and when that incentive goes away justifying that discount is that much harder.
- phkahler 1y agoCustomers don't care about investors - they bring zero to the table.