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