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Bookings: Calculating and Optimizing
SaaS Bookings
Price Intelligently’s SaaS Metric Mondays
Let’s talk about BookingsThe truest look into the committed spending
dollars of your SaaS customers
SaaS Bookings
Bookings = The total dollar value of all
new signed contracts
SaaS Bookings
More about BookingsIt’s typically recorded as an annualized number even if the agreement period is longer than a year. This metric allows you to accurately visualize and keep track of the money customers have committed to spending with you
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SaaS Bookings
Here’s How You Visualizes Bookings(Spreadsheet Example)
SaaS Bookings
All that stuff is great but…why should you care?
SaaS Bookings
“Not tracking Bookings is like inflating your financials with hot air; it’s just not accurate”
SaaS Bookings
More specifically…
Understanding your Bookings can help:
FinanceBetter predict your companies financial
future and accurately account for incoming
dollars
See the breakdown of your SaaS metrics with ProfitWell >>
SaaS Bookings
ProductDevelop an amazing
experience with complementary features
that help increase committed contracts
Lets dive deeper and calculate Bookings like
a #SaaS superstar
SaaS Bookings
What items are included in calculating Bookings?
Bookings Criteria Breakdown Include Exclude
New Contracts Set up fees
Renewals Credit adjustments
Upgrades One time charges
Downgrades/Churned MRR Discounts
SaaS Bookings
The calculation breakdownEQUATION
Bookings is simple, its just the total value of a new contract agreement. Yet if you want to tabulate the Net Bookings of your
SaaS business you take Bookings (New Customers) + Expansion Bookings – Churn and that will give you the total bookings for your
business
SaaS Bookings
Once you master calculating Bookings,
Optimize It!
SaaS Bookings
Increase the number of Bookings in your SaaS business
by: 1. Make sure your product is aligned with a value metric:
2. Reduce MRR Churn through quantifying your buyer personas
3. Annual and longer term contracts
SaaS Bookings
By aligning your product with a value metric you ensure that the value of your offering is in tune with
your customer persona. This in turn allows you to expand the amount of revenue your customers are
committing to you as their usage expands
Key OptimizationMake sure your product is aligned with
a value metric
SaaS Bookings
Quantify your buyer personas beyond a few clever names and slide decks, because you know your customer, you’ll start to be able to identify where you can improve in reducing churn.
MRR Churn is the kryptonite you need to avoid in your business.
Key OptimizationReduce MRR Churn through quantifying your
buyer personas
SaaS Bookings
The longer you get your customer/prospect to commit to a contract, the longer and more your bookings will
rise. Work on making sure you’re optimizing for longer contracts that expand on a value metric
Key OptimizationAnnual and longer term contracts
SaaS Bookings
Boom. Now you can maximize the
health of your SaaS business with your new mastery of the
Bookings metric.
SaaS Bookings
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SaaS Bookings