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This isnt just a housekeeping reminder to check that your go-to-market system is up to date, though.
Were talking about a real boardroom shake-up.
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And were already starting to see the cracks.
It isnt the lack of new business that kills these hypergrowth scale-ups.
And the way that organizations measure churn today could actually be the trojan horse that kills their business.
Co-founder and CEO of CustomerOS, the customer driven growth platform.
When in motion correctly, Customer Success ensures that yourcustomersare realizing tangible business results from your products and services.
And tangible business results are exactly whats required to drive renewals in this economic environment.
The problem is, our Customer Success teams are typically the first to go when the growth numbers stall.
But this reasoning is based on flawed logic and misleading mathematics.
Churn is a lagging indicator.
Its also an imperfect metric thats distorted by sales growth.
This means when youre growing fast, your churn numbers are suppressed artificially.
The way that we work with our customer data therefore needs a total overhaul.
And forSaaScompanies to survive and differentiate, things need to change pretty drastically.
Customer Success remains massively underserved
SaaS is a winner-take-all business.
And more often than not for growing companies, whats working is renewals and expansions.
This serves two purposes.
If our existing customers are growing, this creates a low-cost compounding effect to our business.
It also helps us identify our best customersthe ones that truly realize the tangible benefits of our product.
And successful customers continue to renew and grow their business at compounding rates.
Our growth flywheel turns faster.
This is the secret to sustainable hypergrowth.
The best businesses understand that the foundations of growth are built on renewals and data.
The formula is simple, but its not easy.
The top 10% of SaaS companies generate 87% of all market revenue.
They retain and grow more customers.
They target higher-fit prospects.
And theyre data driven.
We call this Customer-Driven Growth.
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