SaaS Cheat Sheet 2026
The 30 highest-yield SaaS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.
- What does the shared responsibility model mean for SaaS customers? → The customer is responsible for identity, access, and data governance
- Which regulation governs the privacy of health information handled by SaaS applications used by US healthcare providers? → HIPAA
- What does 'net revenue retention' (NRR) measure in SaaS? → Revenue retained from existing customers including expansions, contractions, and churn
- What characteristics of a SaaS delivery model are the following? → All of the Above
- What does 'feature flagging' (also called feature toggles) enable in SaaS development? → Turning features on or off for specific users or segments without deploying new code
- What is a SaaS benchmark for a 'good' annual gross revenue churn rate for a B2B SaaS company? → Below 10% annually, with best-in-class under 5%
- Which encryption standard is considered best practice for protecting SaaS data at rest? → AES-256
- Which framework uses 'Jobs to Be Done' (JTBD) theory to guide SaaS product decisions? → Understanding why customers 'hire' a product to accomplish a specific job in their life
- The SaaS model is spread in what way? → The web
- In agile SaaS development, what is the primary purpose of a sprint retrospective? → To reflect on the team's process and identify improvements
- What is the primary goal of usability testing in SaaS product development? → To observe real users interacting with the product and identify friction in the experience
- A SaaS company wants to test whether users prefer a new onboarding flow. What is the most appropriate method? → A/B testing
- The total cost of ownership for the SaaS model is expensive (TCO). → False
- One of the original and largest ASPs in the world is __________. → USI
- Which prioritization framework scores features by Reach, Impact, Confidence, and Effort? → RICE
- What is the difference between MRR and ARR for a SaaS company? → MRR is the monthly recurring revenue figure; ARR is MRR multiplied by 12
- Around _____, corporate applications began to be hosted centrally. → 1960s
- SaaS use a single application for a variety of users (multi-tenant). → True
- What does 'north star metric' mean for a SaaS product team? → A single key metric that best captures the core value delivered to customers
- Application Service Providers (ASP), a form of centralized computing, were created in the _______. → 1990s
- The distinction between SaaS and SOA → SaaS is a delivery model & SOA is a software architecture
- In SaaS product development, what does the term 'feature parity' refer to? → Releasing features simultaneously across all platforms
- What is the purpose of Single Sign-On (SSO) in enterprise SaaS security? → To allow users to access multiple applications with one set of credentials
- Which security framework is most commonly referenced for SaaS vendor compliance in the United States? → SOC 2 Type II
- Using TEC's Evaluation Centers, can an end user currently compare a SaaS solution to an on-premise offering? → Yes
- One of the most common types of SaaS is __________. → Vertical SaaS
- What is Annual Recurring Revenue (ARR) in a SaaS business? → The annualized value of all recurring subscription revenue
- What is 'feature creep' and why is it particularly risky in SaaS? → The uncontrolled growth of product scope that increases complexity and costs
- What is a seat-based pricing model in SaaS? → Billing per individual user who has access to the software
- The SaaS Delivery model is often accessible through an annual subscription. → False
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