Profitwell vs Baremetrics
The process of growing a SaaS business is tough. It requires a lot of effort and data analysis. An important portion of this process is decreasing churn rate and focusing on the right segments.
In this article, I will compare Profitwell and Baremetrics, their advantages and shortcomings to help you choose the best tool for your SaaS.
What are Profitwell’s Advantages?
Keeps Track of Important Metrics
In general, Profitwell is a pretty solid software with a feature-rich system. Profitwell gives incredible information regarding your financial progress, account value, churn rate, and other important sales metrics.
Here is a shortlist of the metrics Profitwell tracks:
One thing Profitwell does well is how it keeps track of important metrics like LTV (Lifetime Value) in addition to giving summarized information. This detailed tracking of periods you would like to track is great for seasonal changes. This makes it especially useful for service providers that offer once-in-a-month/year offers.
Revenue Recognition Option
Apart from your user metrics, Profitwell also offers an opportunity for revenue recognition. Understanding where your payments come from will enable you to offer special discounts for your desired payment method. This is made possible by Advanced Artificial Intelligence Profitwell utilizes.
Pricing information Profitwell does not only contain the relationship between your customers and you. Profitwell also inspects the prices within your sector and offers you the prices best suited for your sector. This will help you to gain an edge over your competitors by offering the most optimized prices.
You can also group these price ranges by subscription numbers, how big a company is, its user retention rates, and other important metrics that will help you find companies that are most similar to yours. This comparison feature is especially useful if you are in a competitive sector.
Set Your Own Goals
You can set your own goals with the help of Profitwell. This is also important for mid to long-term goals. This feature is especially useful for bigger companies that have long-term aims to accomplish.
Another important aspect of Profitwell is that it is free. However, to be able to use the options provided in the Retain and in the Recognized, you have to pay a sum. Keep in mind that these options are highly customizable, but limited to a certain extent.
Here is a shortlist of things provided by the free version of the Profitwell:
- Analysis of growth, revenue, retention, and churn trends.
- Mobile app.
- Detailed information on unit economics, usage data and cohorts.
Here is also a shortlist of things provided by the Enterprise version of the Profitwell which requires payment:
- Enables access to customized reports.
- Enables the use of user management, security audits, and staging support features.
“Profitwell takes your payment processor data and creates really solid reports and visualizations for you to show growth, churn and more”
“Support is top notch and the help with issues is outstanding.”
Here is a summarized list of Profitwell’s advantages:
- Keeping track of your important data like Life-Time-Value.
- Provides revenue recognition.
- Provides information on service providers in the same sector as you.
- Allows you to set your own goals.
What are Baremetrics’s Advantages?
Baremetrics, like Profitwell, is a solid tool and provides many features. The interface of Baremetrics is quite simple. It is easy to look at and enables one to check out many types of data without hassle. This is especially important for software like Baremetrics that provides many types of data.
Tracking Your Metrics
Baremetrics also delivers regular e-mails to your group members to check your statistics like your user activation rate. Automation of this process saves you from the effort of copying data and sending it to every team member.
Track the Process of Your Team Members
Speaking of team members, Baremetrics also allows you to track the progress of your co-workers. These sorts of little details are stepping stones for improving your efficiency as a group.
Personalized User Profiles
Baremetrics allows the creation of user profiles to better track the individual actions taken by your users. You can group your users according to the metrics you decide and make generalizations accordingly. Baremetrics also allows its users to create their own groups and combine the metrics provided by them.
Comparison with Your Competitors.
Baremetrics analyzes your data and compares it to other service providers within the same sector. Through this, Baremetrics provides you with suggestions regarding what to do with your business. Profitwell also has this feature.
Allows the Import of Non-Stripe Data
Baremetrics allows the manual import of non-stripe data like checks. The flexibility of such data is great for enterprises that are in a transition period and do not have all the data in one certain format.
As it will be mentioned below, Profitwell has some problems when it comes to users that are in a transition period and users in general. SaaS businesses require a high level of customization, so this is an important matter for the field.
An Aesthetic User Interface.
An important part of any software is its user interface. I think it is easy to look at. However, this is not a personal comment on my part, if you encounter someone who uses Baremetrics or decide to check out reviews, you will see that one thing everyone praises about Baremetrics is its user interface.
A good user-interface is especially useful for getting to understand the wide-ranging metrics that can affect a SaaS business. Baremetrics excels in this subject.
Unlike Profitwell, Baremetrics does not offer a free version. Its price range starts from 50 United States Dollars to two hundred thousand United States Dollars. However,; from the four different service packages provided by Baremetrics, you can have a 14-day free trial with any of them.
I would suggest that this is the main point that differs Profitwell from Baremetrics. Profitwell provides a free version while Baremetrics only offers a 14-day free trial. I suggest that Profitwell is best for a newcomer that is looking to gain basic knowledge of how everything works.
The pricing range, on the other hand, is more flexible when it comes to Baremetrics. There are more packages to choose from compared to Profitwell and these are relatively cheaper, especially compared to the other leading actors in the field.
Baremetrics offers four different packages for its users.
The base package offers slack tools, forecasting, people’s insights, and other options. Unlike other packages I will mention, this package does not include setup support. This might be problematic if you do not know how the software operates.
This version also does not have the feature of automated emails and in-app messages that will help you to communicate with your team. This package costs 179 United States Dollars every month.
The second package, apparently the most popular one according to Baremetrics, offers all the features mentioned in the first package and also includes in-app messaging and automated emails. This package costs 268 United States Dollars every month. It also comes with a guarantee that it will pay for itself and setup support.
The third package does not include automated emails and in-app messages. It is directed at the special purpose of retaining the customers you had at one point. This is especially for service providers that see a fall in their user activation rates.
This package includes follow-up emails, In-app questionnaires, and follow-up emails that are for the mentioned goal. This package costs 268 United States Dollars monthly.
The fourth package includes all the mentioned features and is great for software providers that have surpassed a certain level in their respective industries and want to reach new customers and retain the existing ones at the same time.
This package costs 447 United States Dollars every month. The fourth package also guarantees that it will pay for itself. Baremetrics does not offer a discount for any long – term subscriptions, unlike most of its competitors.
Here is a short table explaining what I have written so far:
|Pricing Types:||Pricing (Monthly):|
|Plan 1||179 United States Dollars|
|Plan 2||268 United States Dollars|
|Plan 3||358 United States Dollars|
|Plan 4||447 United States Dollars|
One good thing about Baremetrics is how customizable it is according to your needs. Having these many options presents one with the opportunity to keep using Baremetrics with small package changes. If you are looking for a long-term service provider that changes its service according to your needs, this is really useful.
“Profitwell is one of my favorite analytics tools for managing subscription activvity and performance. The best feature is all the key reports are already built for you and they are intutive to use.”
Again, pretty much like what I have presented at Profitwell’s advantages, here is a short summary of Baremetrics’ advantages:
- Profitwell has multiple useful features.
- Allows better integration with your team.
- Good user interface.
- Flexible price range.
What are Profitwell’s Disadvantages?
Hard Set Up
Despite its overall qualities, Profitwell also has some shortcomings. One important shortcoming is how hard it is to set up. This is especially problematic if you have certain types of data in your hand that you need to integrate with Profitwell.
There are certain customers who claim that they have lost their already existing data while trying to incorporate it with Profitwell. In this sense, I would suggest steering clear of Profitwell if you do not have the necessary resources or time to integrate with Profitwell.
Too Many Metrics Than It is Needed
The more efficiently you track your metrics, the better. However, many metrics given in Profitwell can also cause users to get lost within the software. The user interface needs improvement in this regard.
Getting Support Might be Tedious
There is a general problem among customers that their support team takes their time while solving your problems. This is especially problematic if you are trying to set up Profitwell for the first time and have no prior knowledge.
Although Baremetrics does not include setup support for all the packages, what they offer is better than having no information. However, Baremetrics has its own customer support problems as it is mentioned below.
“The numbers that we pull out of Profitwell are around 95% accurate.”
Here is a short summary of Profitwell’s disadvantages:
- It is hard to set up Profitwell.
- Profitwell can have many metrics that might not be necessary for most service providers.
- Customer takes a long time to solve your problems.
What are Baremetrics’s Disadvantages?
Questions Regarding Data Validity
Some users of Baremetrics claim that the data it shows is auto-generated and is not true. There are multiple examples of users complaining about this issue. This is not something to brush off as something trivial.
So far, Baremetrics has given no explanation regarding these accusations as of the time this article was written.
Tedious Subscription Cancellation
Canceling the subscription is also requires undergoing a tedious process and forces you to call their support multiple times. This sort of attitude, combined with claims of auto-generated data, is not user-friendly, to say the least.
Problematic Mobile Adaptation
There are also smaller problems with Baremetrics. One of the more common ones is how its mobile adaptation is problematic and prone to bugs. This prevents its users from checking their data in an instant.
Another problem tied to this is the fact that customer service is often slow when it comes to certain tasks. Sometimes reaching customer service and getting the feedback you need can take multiple days.
Relatively Long Update Periods
One other problem users encounter while using Baremetrics is that it sometimes takes a longer period to update than expected. Although this is not a problem for companies that work on a mid to long-term basis short -term companies would suffer greatly from any delays.
“Cancelling a subscription is a nightmate. You have to schedule a call with them to start the cancelation process, and it took me a month and an extra monthly payment until it got canceled!”
Here is a short summary of the disadvantages Baremetrics has.
- Problems regarding data reliability.
- Bad mobile integration.
- Canceling your subscription is tedious.
- Customer service is lacking.
A Better Alternative: HockeyStack
Both of these tools don’t allow you to connect your revenue data with marketing and product to better, you have HockeyStack!
HockeyStack is an end-to-end analytics tool for SaaS companies. It unifies marketing, revenue, sales, and product data into one dashboard with no code so that you can understand what really drives revenue at your SaaS. It’s completely no code, and it doesn’t require any setup.
HockeyStack has one-click integrations with HubSpot, Stripe, and Paddle so that you can connect your existing data and answer questions, such as:
- What is the average LTV of a blog post?
- Which marketing channel brings the most engaged users?
- What is the demo close rate of my blog posts?
- What is the average churn rate of users who signed up for a blog post?
- What are the common sales objections of users who signed up from my ad campaigns, blog posts, or top-of-the-funnel content?
and many more.
In this article by HockeyStack, I have analyzed the differences and similarities, advantages, and disadvantages of Baremetrics and Profitwell. In conclusion, I would argue that they are both very specialized software that is directed towards certain types of users.
I would suggest new service providers pick Profitwell over Baremetrics due to the fact that it is free and useful for having an introduction to the most basic metrics.
More experienced users could utilize the Baremetrics to get a wide-ranging view of their data and possibilities for their services.
You can check out our other articles from HockeyStack to further improve your SaaS business.
Profitwell stores its data in special protection storages that comply with Swiss-U.S.Privacy Shield Framework.
The most fundamental difference between Baremetrics and Profitwell is that while Profitwell is free and can be priced depending on the features you pick Baremetrics offers you a price depending on your preferred MMR.