With digitisation and automation, businesses can reap the benefits of affordability; speed which is critical in a fast-paced world where competition has never been more fierce; scalability to meet simultaneously an increased demand for services from customers around globe without downtime or disruptions due software updates as well as low risk because SaaS providers maintain their solutions on premises meaning there's no need invest heavily upfront before realising any potential profits. 

We recently chatted to Pieter Grobbelaar, Chief Commercial Officer of Revio who shared his thoughts on the subscription billing landscape in Africa.  

‍What excites you about the SaaS space?

While most common startup companies have gross margins around 30-40%, maturing SaaS companies reach an average of 70-80%. This is due partially to the fact that SaaS companies benefit from Moore’s law, meaning cost of service for SaaS companies is decreasing year after year as public cloud costs fall. Companies like Amazon, Microsoft Azure, and Google have reduced the cost of their compute instances by as much 36% and their storage by as much as 65% in past years. Unlike most types of businesses, SaaS is largely unaffected by seasonality. 

While companies like Google report 22% seasonal fluctuation and advertising-based companies continue to ride the wave of the fourth quarter holiday cycle - SaaS companies report strong and consistent numbers year round. In addition to the predictability SaaS gains from seasonal immunity, the subscription format the platform revolves around allows for accurate and reliable recurring revenue prediction. When a strong effort is made toward reducing churn and increasing customer retention, monthly recurring revenue and annual recurring revenue will remain stable and predictable for years to come. 

We all know that time equals money. And when you're able to provide a customer with what they need in less time it takes for someone else to do so, there's an opportunity for businesses to create consistent recurring revenue.  

“A happy customer is a repeat customer.” 

‍Where do you see Revio going in 2022?

In 2022, we plan to expand our operations across Africa and beyond.

Which markets are you focusing on and what is the rollout plan?

We are excited to announce that we have selected 5 markets in Africa to prioritise in 2022.  As you may know, there has been an increased demand in digital payments across this region and it is imperative businesses develop their SaaS model before entering into traditional billing cycles with customers who will most likely be accustomed to customised payment options.  ‍

Are there any new product features that will be launching in 2022?

We’re hard at work on a few new product enhancements for 2022, and we plan to expand our partnership roster. This year will be all about meeting the needs of specific markets with tailored solutions that speak directly to the customers’ needs. Our Customer Connect product feature uses machine learning & AI so you can keep your customers engaged for longer.  

Keep an eye on our socials as we’re excited to share the new developments with our customers. Visit www.revio.co.za to find out more or to book a demo.