SaaS Growth Fundamentals: 7 Systems for Generating Repeat Business

On November 7, 2022June 6, 2023By admin

SaaS Growth Fundamentals: 7 Systems for Generating Repeat Business

Here are seven effective ways you can use to improve customer retention, loyalty, and referrals, whether you come from a B2B or B2C SaaS organization.

SaaS Business Model (EP5: Activation Problems & Tightening our Core Loop)

SaaS Business Model – EP5: Activation Problems & Tightening our Core Loop |

Welcome to episode 5 of the $1M ARR Challenge! On this weekly series, we’re taking a SaaS business from $0 to $1M ARR and showing you what it takes to make the SaaS business model successful through behind-the-scenes videos every Friday. Join us as we scale to $1M ARR and beyond!

On today’s episode, I’m going to into why a great product strategy focuses on loops and why we’re hyper focused right now on our Activation metrics more than anything else.

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Resources for Growing Your SaaS Business
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MY FREE STARTUP STRATEGY GUIDE ��
https://tkkader.com/yt/startup?utm_content=useractivation

Learn more about my SaaS School GTM Program ��
https://tkkader.com/yt/gtm?utm_content=useractivation

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SaaS BUSINESS MODEL 0 to $1M ARR CHALLENGE PLAYLIST ��
https://www.youtube.com/watch?v=cXyMJ8bWsuk &list=PLinI31g4OKHiMyCJGfcwWL9q4SYZRlxaT

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B2B SaaS Growth On A Unit Economic Level

If you really want to bootstrap your way to success then you’re going to have to understand unit economics.

Let’s talk about measuring growth for B2B SaaS and the various traps to avoid.

Free product-market fit email course – https://nxtstep.io/fit/

Episode Transcript
Hey folks, Sean here, and today what I want to talk to you about is growth for B2B SaaS companies and how to measure it. Now, I’m sure you’re familiar ish with the concept of measuring growth at a B2B SaaS company. relative to your LTV and your CAC or your lifetime value, your customer and your customer acquisition cost.

If you take your LTV and you divide it by your CAC, you should get a number around three, or at least greater than three, but not too much greater because that can spell trouble, and if it’s significantly under three, you have a problem as well. Now, that is a fundamental concept for B2B SaaS companies to understand because it’s valuable, however, Something I think is arguably more important is really having a fundamental understanding of unit economics in general, because it’s easy to get obsessed with measuring quantitative things when you’re trying to run a successful B2B SaaS company, and I don’t want you to fall into that trap.

Unit economics, on the other hand, speaks more to solid fundamental business principles because at the end of the day, my opinion, what you’re trying to do is run a profitable business, and that doesn’t get talked about enough when it comes to building and growing a healthy B2B SaaS company. I think I know why, but I want to try to do whatever I can to try to change that because there are a lot of successful B2B SaaS companies out there that don’t get a ton of credit or press not talked about as much because they’re not in the so-called kind of VC or investment ecosystem, because they haven’t really needed to do that.

So I’m sure you’re familiar with bootstrapping, which is really where you’re funding your own growth. I’m a huge fan of this concept, at least until you’re in a position to be able to negotiate from power. But the way to get you there, first and foremost, is understand that what you’re doing is setting yourself up for running a healthy business.

And in particular, with regard to growth, I wanna talk about unit economics, which is. , the concepts here, and again, people can get lost and it can get really detailed really quickly. I don’t want you to fall into that trap. I really want you to try your best to keep things relatively simple, especially in the beginning.

And if you understand solid business economics at a fundamental level, unit economics is about as foundational as it. . Basically, you need to take in more money than you spend. And if that’s the case, then ultimately you should have a really solid shot at being profitable, which does any number of things.

It provides a lot of benefits. Number one, it gives you that financial freedom and flexibility, gives you control, enables you to keep most of what you’re building, so on and so forth. So if you don’t, if you’re not forced to go down the investment route, running a healthy business is advantage. For any number of different reasons, but from a unit economics perspective, I want you to focus on making sure that your numbers make sense very, very early on.

Why is that? Because if you don’t, you will fall victim to the age old saying, which is you’re going to lose a little bit on every sale, make it up in volume, , which obviously doesn’t work, right. That makes it pretty straightforward in terms of can’t see that working, but. I see this pattern all the time, and especially with venture backed or investment backed B2B SaaS businesses because there’s this obsession with growth for growth sake, and I think that is a really dangerous trap if you’re going for a unicorn status, if you’re reinvesting every single dollar you have back into growth to try to someday in the future, however many months or years from now, exit for a ridiculous.

I think that’s a trap. If you take a closer look at the statistics on that, it’s around 1% ever actually achieved something like that. So people, people talk about that part, but they never positioned it the other way. , which is 99% approximate failure rate. So I don’t like those odds for you. That’s why I don’t take that approach myself.

I’d rather see you build your B2B SaaS business with solid fundamental economics, and that starts with understanding these concepts at a unit economic level.

The Product Launch Podcast
Episode 98
March 23, 2023

★ Episode details: https://share.transistor.fm/s/41ed7db9

★ Additional episodes: https://nxtstep.io/

How To Think About Churn & Why It’s Killing Your Business

Do you fully understand the true cost of churn in your business? In this video, I’m going to teach you how to understand and fix churn, and why it’s hurting and potentially killing your business.

DOWNLOAD: Revenue Retention Cheatsheet™ – Stop The Bleeding & Scale Your Marketing With Confidence – http://bit.ly/309R5Rr

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Let’s connect on…

+ Instagram (behind the scenes): http://instagram.com/danmartell
+ Facebook (live trainings + Q &A): http://FB.com/DanMartell
+ Twitter (what I’m reading): http://twitter.com/danmartell

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And it goes like this:

How much is it?
– It’s not that bad…
Look, it’s simple. Just give me a number. OK??
– It’s 20% – not that bad, right?
WOW… Your churn is 20% monthly?

*issues a small prayer to all the SaaS gods*

The above is a conversation I recently had with a potential coaching client… GOOSEBUMPS!

Let me put this into perspective…

If your churn rate is at 20% and for one reason or another you fail to add any new customers… in just 5 months… you will churn through all of your existing customers and be left with nothing – simple math.

The worse part, it pulls down your Lifetime Value of a Customer so it makes it really tough to invest in growth and is usually the reason startups fail.

You should always know exactly where you’re standing on your churn levels and you should be doing the best you can to fight these levels back and get that MRR up!

You should make sure you UNDERSTAND CHURN!

In this episode of the Growth Stacking Show, I give you the 4 things you should pay attention to and stay on top of to make sure you stop the bleeding and SCALE-UP!

At a high level, these are the 4 things you need to keep in mind:

1. Churn Flatline
2. Maximum Viable Churn
3. Moment of Churn
4. Fight the Impact

Now…

Where does it all begin? It starts with answering one simple question… What does churn mean?

If you cannot define it – you cannot measure it… and you absolutely need to define it!

You don’t want to find yourself in a situation where your customer success team is measuring something else entirely that skews your data.

Start with something simple. Usually, there are 2 types of Churn – one is Cancellations and the other is Involuntary Churn.

Involuntary Churn can be 20%-40% of your Churn and a lot of times is quite easily fixable.

There will be times where it is caused by simple payment failures and these ones, as frustrating as they are, can be tackled with great tools such as ProfitWell or FlexPay.

Cancellation Churn’s moment, on the other hand, is well defined – it’s when a client doesn’t renew their subscription.

Between the notice and the renew date, there is a period of time that you can really engage with the customer and save the account.

If you implement a strong cancellation process you can save 30%-40% of these clients. A lot of times it’s up to downgrading, showing the solution, talking about their problems – SIMPLE, RIGHT?

You have to sit down and define the moment of churn with your team. Get aligned. There are things you can always do and improve and this is one of them. You need it to blast into space!

Don’t worry, it’s a solvable problem and I give you the strategy in my Churn Buster CheatSheet. I provide 9 strategies that you can deploy today to help you reduce your churn.

If you cannot find the solution for your business there – write a comment below with your question and let’s get the answer your business needs together.

Dan “busting that churn” Martell

Don’t forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/KqPM2-5Qs7w

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ABOUT DAN MARTELL
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“You can only keep what you give away.” That’s the mantra that’s shaped Dan Martell from a struggling 20-something business owner in the Canadian Maritimes (which is waaay out east) to a successful startup founder who’s raised more than $3 million in venture funding and exited not one… not two… but three tech businesses: Clarity.fm, Spheric and Flowtown.

You can only keep what you give away. That philosophy has led Dan to invest in 33+ early stage startups such as Udemy, Intercom, Unbounce and Foodspotting. It’s also helped him shape the future of Hootsuite as an advisor to the social media tour de force.

An activator, a tech geek, an adrenaline junkie and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.

DOWNLOAD: Revenue Retention Cheatsheet™ – Stop The Bleeding & Scale Your Marketing With Confidence – http://bit.ly/309R5Rr

How To Find Pains That Lead to Rapid-Growth SaaS Solutions

Interested in starting a software company but don’t know where to start? In this video, I want to share with you how to find bigger problems that you can easily solve using a SaaS solution.

Exclusive Resource: Idea to Exit Mini-Course – Learn How To Build a Product Without Spending Money & True Customer Validation – http://bit.ly/3cIlBaP

Scaling SaaS Founders Facebook Group: https://www.facebook.com/groups/2044902829088090/

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Listen to the audio version on…

+ Spotify: https://spoti.fi/2uI9BEF
+ Apple Podcasts: https://apple.co/2WOsXkS

Let’s connect on…

+ Instagram (behind the scenes): http://instagram.com/danmartell
+ Facebook (live trainings + Q &A): http://FB.com/DanMartell
+ Twitter (what I’m reading): http://twitter.com/danmartell

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“How do I find a problem that would be perfect to solve with a SaaS?”

YES! Now that’s a good question.

I come in contact with a lot of SaaS founders and business owners (or the wannabes) that ask the wrong questions. You can tell when their mindset isn’t in the right place.

Fixating on bad questions means pouring your mental energy down the drain and wondering why your business is flushing itself out to sea.

So when I hear someone ask an AWESOME question like this one, it makes me want to celebrate.

As a business coach and investor in 40+ startups, I’ve learned to spot the red flags of a business that’s going to struggle versus one that’ll take off like a rocket to the moon.

And without a doubt…

The size of the problem you solve determines your potential for growth.

(Ok, there’s a bit more to it than that.)

I want to help you choose a good business idea from the start, so let me show you my process for finding SaaS-solvable problems in this week’s video.

These are the 4 places you should start when hunting down the right problems:

1. Spreadsheets – They’re an absolute gold-mine
2. Your Own Pains
3. Custom Built Solutions (Just turn it into a SaaS)
4. Trends – ride that wave.

The money is in the problem you solve.

Over 2 years ago, I published a video on building a $100 MIL+ company in 3 years and my first point was: you’ve got to solve a really big problem.

Months ago I interviewed Toby from Shopify who became a billionaire because he found a really big problem and created a fantastic solution.

So if you want to get good at business…

Get good at finding problems first.

Fire up the video right here and learn how to tap into pain points that people will pay for. Drop me a comment while you’re there. I love hearing from you,

Dan “problem prophet” Martell

Don’t forget to share this entrepreneurial advice with your friends, so they can learn too: https://youtu.be/0jjL3ZDpkxc

Learn how to scale, grow and exit with Dan Martell and some of the top SaaS Founders in the business on the Escape Velocity show: http://bit.ly/2vWF03N

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ABOUT DAN MARTELL
=====================

An activator, a tech geek, an adrenaline addict and, yes, a romantic (ask his wife Renee), Dan has recently turned his attention to teaching startups a fundamental, little-discussed lesson that directly impacts their growth: how to scale. You’ll find not only incredible insights in every moment of every talk Dan gives – but also highly actionable takeaways that will propel your business forward. Because Dan gives freely of all that he knows. After all, you can only keep what you give away.

Exclusive Resource: Idea to Exit Mini-Course – Learn How To Build a Product Without Spending Money & True Customer Validation – http://bit.ly/3cIlBaP