#32 🏰 Bite-sized case studies to grow your SaaS

✅ 1 to 3 bite-sized case studies to grow your SaaS

✅ 1 to 3 curated resources from top-notch experts

[Bite-sized case studies]

POSITIONING

1) B2B Positioning evolves over time

Consumer products rarely shift positioning, where positioning shifts are expected and normal for B2B products. As a result, some of the key concepts related to positioning consumer products are completely irrelevant for B2B products.

At a high level: …..

1️⃣ We need to expect our positioning to change over time and have processes for reviewing and adjusting it.

A structured process is needed to do positioning because you will have to do it more than once. I use my process, but any process you believe works is 1000 times better than no process.

2️⃣ We need regularly scheduled positioning check-ins

When I was working in-house, we would have a positioning check every six months and would also call an emergency check if something big happened (e.g., a new competitor in the space, an acquisition, a new big product release, etc.).

3️⃣ We need a process for how downstream changes will happen when there is a positioning change.

This will include updating the sales pitch and messaging and any associated work to make those changes.

Growth tactic by April Dunford (read her full post on this topic if you want to learn more).

 

REVENUE & RETENTION

2) High growth companies are getting killed by their churn, and they're not noticing it.

Nobody talks about this.

High growth companies are getting killed by their churn, and they're not noticing it.

Here's how:

Most b2b customers churn year 2.
Which won't show up in the results until year 3.

This means that the churn of one year's new business will not be visible in the results until 2 years later.

-With me so far?

High growth companies tend to have a significant increase in new business every year.

This means that your churn is disproportionally taken into account to the increased revenue of that year.

A simplified example:

Year 1 renewal:

New business added: 100 000 ARR on 10 customers.
Total ARR: 100 000.
Churn: 0 ARR on 0 customers.

Year 2 renewal:

New business added: 300 000 ARR on 30 customers
Total ARR: 400 000.
Churn: 30 000 ARR on 3 customers. Counts as 7.5% but is actually 30% of the customers acquired before year 1 renewal.

This is where it gets interesting.

What ends up happening is that you think you're losing 7.5% annually, which seems manageable. But actually, you're losing 30% of your acquired customers each year, a rate that's alarmingly high.

As long as you keep growing rapidly year after year, it will be hard to spot this.

But as soon as your growth stagnates, this effect will be seen in everything, everywhere, all at once.

Suddenly, it's clear that churn isn't just a small issue -- it's been a significant problem all along.

But then it will be too late.

So how do companies get around this?

1. Be aware of this "lagging churn" effect.
2. Prioritise retaining customers over acquiring new ones
3. Scrutinise the customers you bring in early. Are they the right fit? Will they get value from the product? Will they stay? Will they be high or low maintenance?

And take this seriously. I've seen so many companies fall into this trap. Usually around year 5-6 is when the effects really get overbearing.

Growth post by Johan Nilsson

ACQUISITION

3) Start every cold email with something about your prospects.

Be aware of your competition when cold emailing prospects.

This is how most cold emails begin...

• 🚫 “I was hoping…”

• 🚫 “My name is…”

• 🚫 “I hope this email finds you…”

• 🚫 “I was reaching out because…”

• 🚫 “I was following up…”

• 🚫 “I can imagine…”

The salesperson is the key.

Use the opposite approach by opening your emails with:

• ✅ “Your _____”

• ✅ “What you _____”

• ✅ “Love your _____”

• ✅ “_____ was great…”

• ✅ “Does your _____”

• ✅ “Saw that _____”

Growth tactic by Jason Bay

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📬 SUGGESTION BOX