As it becomes increasingly expensive to acquire new customers, at what point where revenue leaders and individuals responsible for value creation are going to reevaluate their entire go-to-market strategy? 🤔
Today most revenue leaders have a bias towards “acquired growth”. Why…because these are the metrics that we are measuring. 💡
Does your company have a strategic plan and program for retaining and growing customers? Chances are the answer is “No”. 😱
We mistakenly place this burden on Customer Success. We do this despite knowing this is really a shared responsibility owned by finance, marketing, sales, product, and customer success.
How do we change the paradigm?
We need to focus on “earned growth” which is based on the concept of customer valuation realization. If you’re like most scale up SaaS companies, you have a small group of customers driving 80% of the growth. These are the ones that are getting value from your offering and are investing more in your technology. 🌱
To understand where we have strong earned growth, we need to calculate a new layer of metrics at the segment level. The metrics that matter for earned growth are:
Estimated Customer Lifetime Value NPS/CSAT Logo Retention Rate Feature Adoption By Use Case
Once you go through this exercise, you will see a large variance in customer lifetime value. A few segments will be worth 3-5 times more than others. 📈
By focusing your demand generation efforts on prospects that have a high propensity to renew and expand, there is an opportunity to drive down our CAC payback periods to create more efficient growth.
Join us on our mission to change the way B2B revenue teams go-to-market. 💪
