Market demand and attractive economics continue to drive strong growth in SaaS and subscription services. According to research firm Gartner, SaaS subscription services are expected to deliver a compound annual growth rate of 12% over the next five years.
This shift represents a different way of operating and engaging customers. Success requires rigorous effort, specific attention to detail, and effective collaboration across various organizational functions.
In this playbook, we’ll illustrate the archetype SaaS profile—one that’s maximizing its margin and enterprise multiple potential. We’ll also share a framework for developing an operating model that can deliver on that potential, give you best practices for achieving growth, and allow you to dive deeper into areas that might be challenging for your organization today. Ultimately, the goal is to find the best ways in this playbook to optimize and scale your subscription business. Download our playbook and get started on your journey.
West Monroe’s SaaS optimization framework
Companies are racing to capture the potential economic and strategic benefits of these services:
Margins of 75% or greater
Greater revenue predictability
Lower churn and higher net retention
Greater customer lifetime value
Access to valuable usage and customer data
Create a portfolio map
Sales & go-to-market
Develop go-to-market strategy
Assess product readiness
Assess gaps in lifecycle processes, metrics, org structure, & tools and develop roadmap to transform operating model
CUSTOMER JOURNEY & OPERATING MODEL
Customer Success & Renewals
Engineering & R&D
BACK OFFICE & PROGRAM
Update systems, define financial targets & metrics, and put in place program to transform organization
Economics & Financials
Program & Change Management