FinancialForce Professional Services Automation (PSA) offers SaaS businesses full visibility of sales, services, delivery, and finance. Built on the Salesforce platform, SaaS organisations can achieve complete visibility by managing both front and back-office systems all in one tool.
With data-driven insights powered by Einstein Analytics, finance leaders can manage services and resources from one central location and have access to real-time data. The efficient and easy-to-use tool is ideal for SaaS businesses that want complete visibility of project profitability.
Companies can use inbuilt resource management tools to organise staff based on utilisation rates and can give sales teams information to fill utilisation gaps. These can be tracked by project leaders to identify gaps in resource allocation quickly. With this, SaaS businesses can forecast future business, enhancing profitability and productivity by ensuring all staff are being fully utilised.
SaaS businesses rely on key metrics to report and track services, sales, and delivery. FinancialForce PSA, ERP, and Einstein Analytics make managing key metrics easier, without data overload.
In this article, we outline how FinancialForce's powerful features can help SaaS business report on 3 key SaaS metrics.
KEY SAAS METRICS
ARR – Annual Recurring Revenue
Annual Recurring Revenue is arguably the most essential metric for SaaS companies to monitor the revenue streams coming from subscriptions or services.
With PSA’s powerful forecasting tools; finance, operations, and project teams gain a better insight into service profitability. With Einstein Analytics, forecasting metrics are embedded into the PSA system, giving teams a deeper understanding of recognised revenue.
Real-time dashboards give accurate insights into the business including actuals, expenses, resource requests, and backlogs. Accurately recognise revenue and subscription costs across all services with automated and streamlined processes and make reporting on ARR easier.
CLV – Customer Lifetime Value
Identifying CLV allows you to recognise the value of both customers and services, and in turn, enables you to focus on the most profitable. It’s important for all businesses to focus on the most lucrative services, customers and market segments, but for SaaS organisations, the importance lies in truly identifying customer value to ultimately push business growth.
As FinancialForce PSA offers a complete view of customers at every point in a project journey, it is easier for businesses to decipher the most valuable. This saves sales teams from chasing less valuable opportunities, improving productivity and profitability margins and gives better insights into the customers which can offer a return in investment.
Customer and Revenue Churn
Customer and revenue churn refers to the number of customers who decide to opt out of purchasing more products or services. Calculating churn rates gives a helpful understanding of customer drop-off points and allows businesses to recognise areas for improvement, improving overall business growth.
With PSA offering real-time data of budgets and forecasting capabilities, calculating both customer and revenue churn is simple, with teams no longer waiting until the end of the month to access accurate data. With finance leaders having access to live budget forecasts, the recognition and calculation of both customer and revenue churn can be created regularly.
With a 360° customer dashboard, finance teams have access to a complete view of customers at every stage in a project. With this outlook of both past and current customers, churn models can be created, for businesses to build upon and highlight any areas for improvement.
FINANCIALFORCE Professional Services Automation
Through FinancialForce PSA and ERP, you can track key SaaS metrics quickly and maximise revenue potential across your business. Powerful forecasting tools enable teams to keep on track and focus on profitability. According to a recent report from Service Performance Insight, companies that integrated PSA with their core financial management solution saw an increased deal pipeline of 228%*.
Built on the world’s number 1 CRM solution, Salesforce, FinancialForce allows SaaS businesses to stay on track with full visibility of sales, services, delivery, and finances.
As FinancialForce and Salesforce Partners, ION is equipped with a team of PSA specialists to transform the way you operate, benefitting business, team members, and customers.
Contact ION today to find out more.