John Allen’s Post

Worried about your startup's growth in 2024? You're not alone. Today, I've bumped into the new Paddle & ProfitWell by Paddle "2023 B2B SaaS market report" and other insights from OpenView and Crunchbase. The 2023 B2B SaaS world faced tough challenges and a dip in revenue, but 2024 brings new hope and resilience. The key? Stop focusing too much on acquiring new customers. Try this instead: 1) Implement a multi-product strategy for cross-selling. 2) Develop add-on features or services for high-value segments. 3) Adopt value-based pricing with built-in expansion (e.g., usage-based). Do this consistently and become obsessed with the process: 1) Embrace the market trends (AI above all). 2) Launch fast and iterate. 3) Adjust Go-To-Market strategies to prioritize expansion. No matter the industry. Focusing on current customers for growth remains a key strategy for 2024. The full article here -> https://lnkd.in/ddXjh_3H

What does it take to reach $1 million/year? Here's the ARPU* breakdown: 9 customers @ $10,000/mo 17 customers @ $5,000/mo 84 customers @ $1000/mo 167 customers @ $500/mo 834 customers @ $100/mo 1667 customers @ $50/mo 3334 customers @ $25/mo The person who wants a $25/mo product buys differently than a $5,000/mo customer. Different needs Different process Different thoughts Different influences Different onboarding Your marketing, sales, and customer success strategies will be different based on your ARPU. Focus. If you're running a startup, don't try to be all things to all people. You'll become nothing to nobody. *ARPU = average revenue per user *** ♻️ Like this? Please repost. ➡️ Follow me for daily executive coaching written by me, not AI.

Successfully navigating the current economic conditions will require focus Excellent insights and an actionable strategic GTM framework from Jessica Lin general partner and co-founder at Work-Bench that can be adapted (regardless of size or target market) by understanding the unique challenges and opportunities of each segment and tailor these strategies accordingly for YOUR specific desired growth and stage. Regardless of the size, focusing on how the product delivers ROI is crucial. YOUR value proposition needs to address the specific needs and scale of each customer segment. It is VITAL to utilize data to inform sales and marketing strategies Post-sales support and adoption are critical for customer retention, providing effective onboarding, customer support, and regular updates can improve customer satisfaction and reduce churn. ✳This is especially important for smaller SaaS providers where each customer forms a larger proportion of the revenue base. Hope you glean some useful GTM knowledge here

What counts as a customer? Out of all the confusing metrics out there, you’d think “customer count” would be one of the simplest. Think again… Some considerations that can make customer count trickier: 🔵Free trial periods 🔵Active, but free, users 🔵Prosumer customers (who act more like individuals, rather than companies) 🔵Method of payment (personal credit card vs business credit card vs ACH) 🔵Sales channel (self serve vs sales team) Companies are becoming more liberal in the way they define what a customer is. Part of the change is due to the rapid adoption of Product Led Growth strategies, which allow customers to self serve and sometimes buy before they try, as well as usage based pricing, which tends to start customers at a lower level than they would be on a typical seat based subscription plan. And the elephant is the room is that many companies move the goal posts, to put it simply, it makes them look better. There are some perverse incentives to not report certain cohorts as customers. Things companies potentially improve by excluding certain groups of users: 🟠Decreasing total churn 🟠Increasing net dollar retention rate 🟠Increasing average deal size As a tip, whenever you analyze a company, you should start from the position of “anyone who paid you within the last 12 months is a customer” and then work backwards from there. How do you calculate how many customers you have? Add your thoughts in the comments! Thanks to CJ Gustafson from Mostly Metrics for the article #GOVentures #startup #metrics

Most SaaS founders obsess over churn, as they should. But are we looking at the right signals? I once worked with a founder who had a "star" customer - high usage and great feedback. Then suddenly, they were gone. Despite high end-user activity, we missed the warning signs hiding beneath the surface: 1. Misinterpreting metrics: The founder confused high usage with broad and deep engagement. While users frequently accessed the product, they only utilized a narrow set of features. This left the product vulnerable to replacement by focused competitors offering just one or two key features. 2. Communication lag: Customer response times to the company's emails and in-app messages gradually increased, signaling waning enthusiasm. 3. Declining customization: Users invested less time in personalizing the product, indicating reduced commitment. 4. Payment irregularities: Delayed or missed payments indicated a reevaluation of the product's value proposition. We also overlooked two obvious indicators: 5. Stagnant user growth: New team members weren't being onboarded, suggesting the product was losing favour within the organization. 6. Weak workflow integration: Declining API calls and poor integration with daily workflows signaled the product's diminishing role in the customer's tech ecosystem. High activity doesn't always equal happy customers. Churn is often avoidable, but we need to look beyond obvious metrics. It's the quiet changes that often signal impending customer loss. *** I build SaaS products and work with MicroSaaS founders. This is Post 6 in our series - “Thinking MicroSaaS,” where I will share more about growth, pricing, marketing, feature development, and a lot more. #StartupInsights #CustomerRetention #ProductMetrics

Last week, I was asked how "our" company gets to $1MM in ARR by year-end. Wow, what a great yet tricky question to answer. Well, here is my answer at a high level: 1. Define Your Target Market: Identify your ideal customer profile and target market segments. To generate recurring revenue, you can focus on acquiring customers who align closely with your product. 2. Refine Your Value Proposition: Your product should solve your target customers' critical problems. Highlight the unique value proposition that resonates strongly with your target audience. 3. Optimize Pricing Strategy: Evaluate your pricing strategy to maximize revenue potential while remaining competitive. Consider implementing tiered pricing, bundling options, or value-based pricing models to capture your offering's total value. My grandfather always said, “Profit is not a dirty word.” 4. Accelerate Customer Acquisition: Ramp up your sales and marketing efforts to drive customer acquisition. Leverage inbound and outbound tactics, such as content marketing, social media outreach, email campaigns, and targeted advertising, to generate leads and convert them into paying customers. 5. Focus on Customer Success: Prioritize customer satisfaction to maximize each customer's lifetime value. Implement proactive customer success initiatives, such as onboarding assistance, ongoing support, and regular check-ins, to ensure customers derive maximum value from your product or service and remain loyal. 6. Expand Product Offerings: Explore opportunities to upsell or cross-sell additional products or features to existing customers. Continuously innovate! 7. Optimize Operations: Streamline internal processes and optimize operational efficiency to scale effectively as you grow. 8. Monitor Progress and Iterate: To gauge progress toward your goal, regularly track key performance indicators (KPIs) such as customer acquisition cost (CAC), customer lifetime value (CLV), churn rate, and monthly recurring revenue (MRR). Iterate on your strategies to optimize performance and drive sustainable growth. As you work toward this milestone, remember to stay agile, adaptable, and responsive to market dynamics and customer feedback. #startup #ai #gotomarket #PricingStrategy #BusinessStrategy #ValueCreation #MarketSegmentation #CompetitiveIntelligence #CustomerValue #StrategicPlanning #fintech

📈 Want to track your SaaS growth metrics more accurately? Here are 5 essential metrics every startup founder should be measuring. #SaaSGrowth #MetricsTracking 🚀 As a LinkedIn marketing and content creation expert, I understand the importance of tracking key metrics to drive business growth. When it comes to SaaS startups, measuring the right metrics is crucial for success. Here are 5 essential metrics that every startup founder should be keeping an eye on: 1️⃣ Monthly Recurring Revenue (MRR): This metric helps you understand your revenue growth and predict future revenue streams. 2️⃣ Customer Acquisition Cost (CAC): Knowing how much it costs to acquire a new customer is vital for optimizing your marketing and sales strategies. 3️⃣ Churn Rate: Keeping track of customer churn allows you to identify areas for improvement and retain valuable customers. 4️⃣ Customer Lifetime Value (CLTV): CLTV helps you determine the long-term value of a customer and make informed decisions about customer retention and acquisition. 5️⃣ Net Promoter Score (NPS): NPS measures customer satisfaction and loyalty, providing insights into your product-market fit. By focusing on these metrics, you can make data-driven decisions and drive your SaaS growth to new heights. Start tracking today! 💪📊 #SaaSGrowth #MetricsTracking

📈 Want to track your SaaS growth metrics more accurately? Here are 5 essential metrics every startup founder should be measuring. #SaaSGrowth #MetricsTracking 🚀 As a LinkedIn marketing and content creation expert, I understand the importance of tracking key metrics to drive business growth. When it comes to SaaS startups, measuring the right metrics is crucial for success. Here are 5 essential metrics that every startup founder should be keeping an eye on: 1️⃣ Monthly Recurring Revenue (MRR): This metric helps you understand your revenue growth and predict future revenue streams. 2️⃣ Customer Acquisition Cost (CAC): Knowing how much it costs to acquire a new customer is vital for optimizing your marketing and sales strategies. 3️⃣ Churn Rate: Keeping track of customer churn allows you to identify areas for improvement and retain valuable customers. 4️⃣ Customer Lifetime Value (CLTV): CLTV helps you determine the long-term value of a customer and make informed decisions about customer retention and acquisition. 5️⃣ Net Promoter Score (NPS): NPS measures customer satisfaction and loyalty, providing insights into your product-market fit. By focusing on these metrics, you can make data-driven decisions and drive your SaaS growth to new heights. Start tracking today! 💪📊 #SaaSGrowth #MetricsTracking

We're in the midst of a HUGE shift in B2B buying. On the one hand, we have SaaS companies that struggle to effectively communicate their value to potential customers and stand out against increasing competition: [1] Website messaging isn't great. Companies talk too much about business outcomes and not enough about the functional benefits their target customer cares about. It takes digging to understand what a product does and whether it's relevant. [2] Trial experiences are fuzzy. Companies have slapped a "Start Free Trial" CTA on the website and called it PLG. Users sign up but don't know where to go, what to click, or how to derive value from the product. Activation rates are low. It's like minimal viable PLG. [3] Most sales-led companies are STILL gatekeeping pricing and pushing buyers through unnecessary hoops. At a certain price point, sure. Most could remove this, though. 20% of companies take 2-5 days or don't respond to a demo request. Then on the other hand, buyers have made it clear: [1] Gartner reported that 75% of buyers want a rep-free experience. The sales hoops that the entire industry's growth playbook was built upon aren't wanted. [2] G2 reported that buyers are 60% through the buyer's journey before engaging with sales. So before they submit that demo request, they're informed, opinions have been developed, and questions have been answered. Companies have neglected this part of the buyer's journey because it's harder to track. My take is that the industry is shifting from seller-centricity to buyer-centricity. Promises not being realised have eroded trust, and a far simpler justification is that buyers have more choice. Building software is easier; more products exist, and low-funded/bootstrapped founders don't have to squeeze customers for every drop of juice due to investors' demands. #b2bmarketing #saas #startup #efficientgrowth

📈 Want to track your SaaS growth metrics more accurately? Here are 5 essential metrics every startup founder should be measuring. #SaaSGrowth #MetricsTracking 🚀 As a LinkedIn marketing and content creation expert, I understand the importance of tracking key metrics to drive business growth. When it comes to SaaS startups, measuring the right metrics is crucial for success. Here are 5 essential metrics that every startup founder should be keeping an eye on: 1️⃣ Monthly Recurring Revenue (MRR): This metric helps you understand your revenue growth and predict future revenue streams. 2️⃣ Customer Acquisition Cost (CAC): Knowing how much it costs to acquire a new customer is vital for optimizing your marketing and sales strategies. 3️⃣ Churn Rate: Keeping track of customer churn allows you to identify areas for improvement and retain valuable customers. 4️⃣ Customer Lifetime Value (CLTV): CLTV helps you determine the long-term value of a customer and make informed decisions about customer retention and acquisition. 5️⃣ Net Promoter Score (NPS): NPS measures customer satisfaction and loyalty, providing insights into your product-market fit. By focusing on these metrics, you can make data-driven decisions and drive your SaaS growth to new heights. Start tracking today! 💪📊 #SaaSGrowth #MetricsTracking