It's harder to scale a company today than it has been in the past. Whatever stage your company is at, a near 70% drop in the value of public SaaS stocks, increasingly limited access to funding, and shrinking company tech stacks all point to a more challenging road ahead for a sector that was used to rapid growth almost by default.
Even though the economy is in a downturn, ambitious founders and operators will not give up on their growth ambitions. They shouldn't do that. Retaining customers and scaling steadily isn't dependent on VC funding
Digital advertising and larger sales teams are likely to prove too costly or unreliable in the current climate. If you want to grow through the downturn, you need a new strategy. It's important to focus on scaling by tapping into more overlooked andunderappreciated sources of revenue.
If your CX isn’t tailored for international customers, you are leaving critical gaps in your offering and will see potential sales fall through the cracks.
Over the last 10 years, I've helped thousands of software companies and seen the financial metrics of 30,000 subscription companies. I believe that there are three growth levers that every company should be looking at.
Encouraging businesses to deprioritize acquiring new customers might seem counterintuitive, but the truth is that keeping existing customers happy and generating new sales from them is much cheaper than acquiring new clients. Many buyers will be hesitant to spend money trying out new things.
Expansion revenue is the additional revenue generated after the customer has purchased a product. Getting your customers to spend more money is what this is about. The most successful subscription companies have 20% of their new revenue coming from existing customers, but many businesses have zero new revenue.
Sales brain is a flawed mindset that sees the sale as the end goal rather than the beginning of a long-term process.
There are a few ideas that can be used to increase revenue.
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