Touch 2023 letter to Shareholders
Dec 31, 2023
Across the board 2023 was challenging for B2B SaaS companies.
Growing revenue and reducing cost were the two sometimes diametrically opposing business priorities in 2023. Businesses moved away from “growth at all costs” and trended towards improving profitability.
The key trends in 2023 for B2B SaaS that Touch plans to double down on:
Usage-based Pricing: Consumption is king. More SaaS companies are embracing usage-driven pricing strategies, especially for those in the B2B space. After decades of dealing with shelfware, CFO’s want to only pay for what their company uses.
Self-Service Capabilities: Over 81% of customers are seeking more autonomy, leading to the rise of self-service capabilities in SaaS trends for 2023. This trend is expected to accelerate in 2024.
Outcome Orientation: Customers don’t just want a service, they demand outcomes. Use of predictive models is becoming increasingly important in the SaaS industry, with its ability to detect patterns in customer behavior and provide valuable insights. Bayesian statistical models remain the most prominent form of predictive analytics. We are doubling down on this path.
Gen AI: Large Language models shaped the dialogue in B2B SaaS. With its adoption in the SaaS industry allowing for hyper-personalization and various other use cases.
Integrations: There is a growing emphasis on integrations, with greater need to consolidate key systems and siloed customer data. This problem is yet to be solved.
Key Performance Indicators:
Annual Recurring Revenue:
We were able to grow our revenue from 0 to $11k in ARR at 48% Avg Monthly in 9 months. This was thanks to 13 new customers.
Monthly Active Users
One of the biggest blockers to growing revenue was having a usable product. As you’ll note, from March to August, we spent a lot of energy in building out Touch app so we could start to deliver repeatable value to customers.
We turned a curve in September. By December it became clear that we had achieved great experience and delivered repeatable value.
Starting August ‘23, Our measure for usage has been emails sent.
Touch made it to a Times Square billboard.
With increasing focus on our top of funnel marketing strategy, we gradually increased website visitors from sub 50 visitors a week to over 200 visitors a week.
We’re anchoring our marketing strategy on value added content.