Chargify, the leading subscription billing platform for B2B SaaS, has released its annual B2B SaaS Trends in Billing and Financial Operations Report, in partnership with SaaSOptics, the leading platform for SaaS financial operations.
The report features insight into what business changes SaaS subscription businesses plan to make in 2022, as well as struggles they faced throughout 2021 including customer churn, inefficient processes, and ACS-606 compliance. Key results include:
- Customer-centric pricing is growing. Forty-two percent of companies opted for a sales-negotiated pricing model in 2021. Additionally, 37% are planning to expand into new pricing models in the coming year, with the most desired addition being a variable-pricing model.
- Customer renewals are the main focus for subscription companies. When it comes to subscription management, 34% of participants indicated customer renewals will be the main area they are focused on improving in 2022.
- Fewer companies are pursuing funding in 2022. Sixty-two percent of respondents indicated they were not interested in fundraising in 2022; however, 32% of respondents did fundraise in 2021 with a 95% success rate.
- SaaS companies are focusing on product-led growth. More than 40% of SaaS companies plan to grow their businesses and revenue in 2022 by expanding product offerings and/or entering new markets.
- Access to real-time insights is a top priority. Having real-time insights was listed as important or very important to 72% of participants, highlighting the need for SaaS companies to be able to respond quickly to potential fluctuations and deliver reactive, curated user experiences.
- ACS-606 compliance is a challenge. Despite the new accounting standard applying to all companies in 2020, 63% of companies still had not implemented it in 2021. Respondents indicated the largest barrier to ASC-606 adoption was an inability to understand how the new standard would practically impact businesses.
“The SaaS industry changes rapidly and it’s critical for businesses to keep up with the direction the industry is headed or risk falling behind their competition and revenue goals,” said Matt Downs, CRO for SaaSOptics and Chargify. “Several hundred of our B2B SaaS customers gave us insight into their subscription billing and financial operations — what they did in 2021, and changes they’re making in 2022. From this data, we uncovered significant trends which offer a glimpse into the future of SaaS billing and finance.”
More than 240 SaaSOptics and Chargify customers across 23 industries were surveyed online to glean insight into their billing and finance operations. For more SaS subscription billing and financial operations benchmarking trends, download the full B2B SaaS Trends in Billing and Financial Operations Report at https://go.chargify.com/2022-trends-report-ebook