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D 5 · C 5 · P 5 · Cm 4 4.85
Q so that, that's part of my question, right, is like, how do you, I mean, typically when you talk about a SaaS business, it's like a fixed monthly fee, and people are upselling based off seats, or, or unit economics, or contacts, or some other unit metric. For you, how do you help people? Do you just use the trailing twelve-month travel spend, and you just anchor it to that?
A Well, so you're talking about, I mean, there's different types of SaaS contracts. Our SaaS contracts are all annual. Some of them are multi-year. So a customer will tell us how many seats they plan or how much, how much volume they plan to put through the platform. Typically we advise customers to, to anchor low, right? So if a company spends, you know, a hundred million dollars a year in travel and they're with us for year one, don't buy a hundred million dollars worth of travel because you probably won't use it because it's going to take us time to onboard your employees and train them, get them excited about the platform, teach them how to use it. And so on and so forth. So don't purchase the full hundred, purchase seventy-five million. So purchase a little less. Now, if you exhaust that total volume six months into the year, it would expire the contract. We'd start a new contract, but that's fine. That's, that's, that's just paperwork. So we encourage clients to aim a little bit below what their total capacity is, especially in year one.
AI assessment note: “Typically we advise customers to, to anchor low, right?”
Answered produced feed
D 5 · C 5 · P 5 · Cm 4 4.85
Q Okay, all forward. So how, I mean, how do you keep a client like that went through what I just articulated to you? They say ten million, they only end up spending half of that. You don't refund it, so there's bad feelings at the end, but they still like you. They still put five million through your platform. How do you keep them happy?
A The ROI on the platform is pretty powerful. So I'll give you an example. Hypothetically, right? A company spends a hundred million dollars a year in travel. They pay us two million dollars, but they only end up Pushing fifty million dollars worth of spend through the platform. We still return that. We would have returned twenty million dollars in savings because they only sent us half of the spend. We only returned half of the savings as we only returned ten million dollars split up 50 50. The company's net savings is five million dollars. So they returned, they invested two million to return five million dollars in savings. The platform paid for itself two and a half times over. So it's still a very significant positive ROI for the client. It's just not as positive As if they had used the full volume of what they purchased. It's like saying you purchased, you know, 50 seats on salesforce.com and you only used 25 of them. You spent too much, but the platform still added a lot of value to your annual, you know, so next year you might renegotiate and spend less with Salesforce because you don't need as many seats, but it's not like you're canceling your contract because Salesforce didn't add any value, right?
AI assessment note: “So it's still a very significant positive ROI for the client.”
