SaaS Knowledge 2

Question 1

Which pricing model charges customers based on the number of API calls or data processed?

Accepted Answer

Usage-based pricing

Answer

Usage-based pricing (also called pay-as-you-go) charges customers proportionally to how much they consume the service.

Question 2

What does 'product-led growth' (PLG) mean in a SaaS context?

Accepted Answer

The product itself is the primary acquisition and conversion channel

Answer

PLG is a go-to-market strategy where the product drives user acquisition, expansion, and retention without relying primarily on sales or marketing.

Question 3

What is a 'SaaS quick ratio' used to measure?

Accepted Answer

New MRR plus expansion MRR divided by churned plus contracted MRR

Answer

The SaaS quick ratio measures growth efficiency by comparing new revenue gains to revenue losses in the same period.

Question 4

In SaaS, what is 'negative churn'?

Accepted Answer

Expansion revenue from existing customers exceeds revenue lost from churn

Answer

Negative churn occurs when upsells and expansions from existing customers outpace cancellations, causing net MRR to grow even without new customers.

Question 5

What is the primary purpose of an SLA (Service Level Agreement) in SaaS?

Accepted Answer

To legally commit to uptime, performance, and support response standards

Answer

An SLA formalizes the service quality commitments a SaaS provider makes to customers, including uptime guarantees and remedies for non-compliance.

SaaS Practice Test