I was often a self-funded founder whose SaaS growth strategy needed to include profit, as that was how my co-founders and I paid ourselves. When you’re growing a SaaS in a meteoric sector like martech, taking investment capital out of the growth machine in the form of profit must be done judiciously and intentionally. If […]
Transcript: Customer churn sucks but doesn’t have to suck the life out of your SaaS business. Hi, I’m Justin Talerico with Married2Growth and this is my perspective on my number one indicator of SaaS capital efficiency—customer churn. Unlike revenue churn, customer churn is binary. They’re either a customer or they’re not. And when they’re not, […]
Transcript: Lean IT isn’t an idea for me, it’s a passion and practice that has saved and made me millions. Hi, I’m Justin Talerico with Married2Growth and one of the areas I’m committed to staying capital efficient is IT. I’ve operated for more than two decades on the premise that the money I save on […]
Transcript: SaaS revenue recognition is critical to your valuation, how you manage and how you finance your business. Hi, I’m Justin Talerico with Married2Growth and this is how I look at rev rec and deferred revenue. Investors and buyers will discount your valuation by either your deferred revenue balance or, if you’re lucky, the COGS […]
Rev rec must be timely, accurate, consistent and auditable in order to be reliable as a management tool. Strategically, deferred revenue has sizable implications on how cash in the business is managed and invested. This is a CEO’s look at revenue recognition.
Revenue churn is a huge indicator of growth potential. That’s because, even when companies have significant customer churn, they can overcome it with expansion revenue. When you have that, combined with success in new customer acquisition, you have a growth machine that will be hard to slow down. It’s a recipe for success.
SaaS businesses grow at the intersection of customer acquisition and lifetime value. When customers churn they cut short lifetime value and upend the fundamental driver of healthy growth
I will sacrifice luxurious features, chalk them up as ‘nice to haves’, and go with thinner, less cumbersome solutions. I’d much rather have 80% of the features run well 100% of the time than the inverse.
While you may not be able overcome fundamental problems with your product or your go-to-market, the good news is there are actually really effective things you can do to help increase customer retention that aren’t going to come at a high cost.
Everything starts with a sale, and the sales team needs rewards for their hard work. Squeeze budget from every nook and cranny to come up with motivating, useful incentives. But just don’t break the bank.