Grounds for optimism in the eye of the storm
Enterprise SaaS Spot On
While the COVID-19 pandemic has shaken the world, the SaaS industry has shown resilience, with the increased need to adopt remote-working practices even driving some transactions. Companies changing their focus to upselling and cross-selling to existing customers rather than investing in new growth has aided them during uncertain times by reducing costs. The industry has shown continuous growth in recent years and is expected to continue to become more and more relevant.
What makes SaaS companies particularly adaptable to changing market conditions is the continuity of the sales model combined with the flexibility of the cost structure. While sales and marketing spend typically accounts for approximately 30% of a SaaS company’s cost base, one of the key ways to manage uncertainty is to limit growth investment. Focus on upsales and cross-sales to existing customers is emphasized, as sales to new customers is slowing down for many businesses.ALPO LUOSTARINEN, ENTERPRISE SAAS SPECIALIST, OAKLINS
We sat down with Olli Nokso-Koivisto, the CEO of LeadDesk, a rapidly-growing, international cloud-based CCaaS provider (CCaaS stands for call center as a service), to hear how his firm has handled the COVID-19 turmoil and the measures they have taken to ensure their continuing growth, as well as his thoughts on the way the M&A market has been affected.
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