IDC #EUR145482319 Sage Infobrief

IDC #EUR145482319 Copyright IDC 2020 18 How to Become a Great SaaS Partner A call to action — where to start? Talk to your primary vendors (e.g. Sage) to understand how their customer success function is structured and what incentive structures they have in place. Ideally you want to align objectives. Identify candidates to lead customer success — ideally this person should have a strong background in both business development and services, as the biggest challenge will be bringing a services mindset to sales and vice versa. This person should report directly to the CEO. Do an as-is and to-be assessment of the financial state of the business with the context of building an ARR business. Key questions to answer in this process are: • What is the split of recurring versus upfront revenue? On average, partners report a 35/65 split (recurring/upfront); ideally you want to grow your recurring business to be the majority — over time. • What is the company’s CAC, GRR and/or NRR? Ultimately, you would like to be in the position to calculate CLV. • What are the company’s plans? You will need to set clear objectives for your company and start incorporating them into your compensation plans. Identify new revenue streams — new services, intellectual property, etc. — to monetise and/or complementary products to resell along with your core SaaS offering. This will help offset the revenue gap from lost implementation and resell revenue. 1 3 4 2