Markus Rentsch’s Post

Most CROs are acting like VPs of Sales. They pour 90% of their budget into acquiring new customers and next to nothing into keeping and growing them. As a result, SaaS companies leave 90% of their revenue potential on the table. Revenue that comes from - an ultra-high retention rate - demand for expansions, up- and cross-sells - driving new acquisitions through referrals - winning customers for life by bringing your product to new employers - value-based pricing and is super capital-efficient. Want to grow faster, further, and more profitable while everybody else is struggling? Double down on Customer Success. #saas #customersuccess #customervalueledgrowth

Inspired by the latest post of Vlad Gozman (who again took inspiration by content shared by Jason M. Lemkin) . Growth in #Saas - how do you ensure it? There is the obvious part of the upper funnel through new acquisitions and securing new logos and their business. When you look at the #cac (cost of acquisition) we know that in SaaS in general (and I deliberately generalize here as there is a wide range of SaaS products and offerings and the circumstances differ a lot) you have to retain customers for a while until you have reached break even with your subscription fees and earn with the customers. #Retention is "the other" contributor to growth and a sustainable one as you can build a stable relationship that fosters growth led by customer value. Your customers success is often also your own success as a SaaS vendor. Retention is preventing that your end of the funnel is a leaky pot that requires even more effort on the acquisition side to keep stable revenue streams or generate growth. Both new acquistions and retention are needed and should be seen equally in their value and importance as growth engines. #customersuccess #customerexperience #go2market #growth

One of the most common reasons clients come to us is when they're struggling to land a high-value client. We all know that client - the one that really changes the game for us not only in revenue terms, but also in terms of boosting credibility and reputation, and building trust in the industry. If you're looking to land a big fish in your own business, take a look at our article outlining 10 actionable strategies for attracting and retaining high-value customers - which draws on insights and best practices from our decades of experience driving revenue and growth for tech & SaaS companies. Which is your favourite strategy? Let us know in the comments. #BusinessGrowth #Revenue #Sales

The days of hypergrowth through new logos are over. Instead, the smartest SaaS companies are shifting their focus to reactivation and expansion revenue, which now account for up to 50% of their growth. This shift is especially true for companies that have achieved >100% Net Revenue Retention (NRR) - the holy grail of SaaS growth. But before jumping into optimizing retention in the first week, month, or year, step back and look at customer acquisition. Retention and expansion are impossible without good-fit customers. Building a detailed Ideal Customer Profile (ICP), optimizing the entire customer journey around it, and ruthlessly qualifying leads are non-negotiable. Otherwise, you'll waste resources trying to retain customers who were never the right fit to begin with.

What a great day! Thirty days ago one of my SaaS client’s reps thought a deal would close in September. What if we could pull it forward? We created a win plan, collaborated with their champion on a compelling business case and aligned all stakeholders. We also neutralized a gatekeeper who favored a competitor. (They’ll be a fan soon). This morning they received a slightly larger order for three years. Working a Q3 deal? Call your future client today and ask about discretionary funding that would allow them to benefit from your solution immediately. #saas #sales #enterprisesoftware

David’s S&M as a % of net new ARR is basically the same thing as net new CAC ratio and at 2.3x it’s running high. Even if you back out stock-based compensation (SBC) it’s still running above 2.0x. And these are best-in-class public companies. But despite historical comparisons is 2.0x too much to pay for a $1 of new ARR? It depends, mostly on expansion potential and stickiness. If paired with a high NRR, it works. If paired wtih a low GRR or a short CLT then it might well not. But, more than anything, make sure you look at it both ways — relative to past norms and relative to future value.

I urge anyone that is in charge of their firms GTM strategy and tactics (ESPECIALLY you, any SaaS business of any size) that needs more website traffic and a higher Google ranking to take a look at @FlareAI. This AI tool requires zero staff interaction (IKR) and will REDUCE any SEO or ad spend. You'll automatically generate MORE and NEW MQL and SQL app's AND reduce your CAC. I've seen it live and it's true. This solves two basic marketing problems... my staff is overworked and has too many tools they already aren't using AND generating website traffic so the majority of my martech tools can operate correctly is SOO expensive via either good adwords OR through using an SEO agency, that I literally can't generate a profit. flareAI for SaaS Growth: Cut CAC by 96%. 3X Sales. Faster Close is the answer.

🌟 Transforming the SaaS Buyer's Journey: A Roadmap to Success 🚀 In the whirlwind of SaaS sales, it's easy to focus solely on the finish line. But what if the real secret to success lies in the journey itself? 🛤️ Our latest blog delves into the heart of the SaaS buyer's experience, exploring each critical touchpoint from initial awareness to post-purchase support. Here's a sneak peek: The Spark: Where confusion meets curiosity. Discover how to be an informational oasis for potential buyers. The Hook: Awakening and realization stage. Learn the art of being an empathetic confidante. The Validation: Building trust and confidence. See why being a trust builder is crucial. The Commitment: The decision-making phase. Understand the role of a reassuring guide. The Journey Continues: Beyond onboarding. The importance of being a supportive partner. Each stage is a unique opportunity to shape the buyer's perception and influence their decision. 🌈 ✨ Dive into our blog to uncover insights on creating a positive and lasting impact throughout the buyer's journey. It's not just about the destination; it's about building a value-driven relationship that fosters mutual success. 🔗 https://hubs.la/Q02jpNDB0 #SaaSSales #CustomerJourney #B2BMarketing #SalesStrategy #CustomerExperience

Attention SaaS Leaders! 🚀 3 Secrets to Growing Revenue Without Relying on New Clients or Upsells 💡💰 ✨ #1 Develop an exceptional product and focus relentlessly on your client's success. A happy client is a loyal client—they’ll stick around, driving recurring revenue. ✨ #2 Build customers who love your solution so much, they’ll share it with their network. Referrals can create a powerful, self-sustaining growth loop. (Credit: Greg Head) ✨ #3 Explore performance-based pricing. The more success your clients achieve, the more your SaaS revenue grows alongside them. 🔗 https://flareAI.co #SaaS #RevenueGrowth #ClientSuccess

"It’s 2-3x more cost-effective to grow $1 of ARR from existing customers than gaining $1 from new customers" SaaS businesses will still be focusing on expansion revenue in 2024. But what are some actionable tips for growing it? 1️⃣ Consider splitting off features that 15% of your most engaged users use into a new plan in order to grow 30-50% faster. 2️⃣ Implement add-ons like faster support and single sign-on (SSO) to grow LTV 18-54%. 3️⃣ Speak to sales and marketing leaders about where they’re spending their time to work out existing spend vs new customer spend (i.e. Look at account managers for existing business vs new business reps). Check out all of Paddle's tips here: https://lnkd.in/e3pbNEn8 #SaaS