CEO at Foundersuite.com (for startups) and Fundingstack.com (for VCs and i-bankers) | I help startups, VCs, & advisors raise capital faster 🚀
Very hard: Convincing SaaS companies to prioritize user engagement over immediate revenue in a downturn. When markets are down, budgets tighten. And founders panic. Which leads to aggressive marketing campaigns targeting new customers. Even though I think this is a costlier with uncertain ROI. It also neglects increased revenue from upselling and cross-selling to existing customers. New customers will always choose the cheapest alternative. So, it's better to keep existing customers happy. In other words, don’t give them a reason to leave. Even if it means restructuring your pricing tiers. Research done by Frederick Reichheld, the inventor of the net promoter score, found that boosting customer retention by 5% increases profits by 25% to 95%. I’d also add that optimizing operational efficiency can be a more effective strategy than budget slashing. For example, tools like Foundersuite offer fundraising templates, investor pipeline tracking, and other features to help founders streamline their early-stage fundraising efforts. Yes, that’s a shameless plug :) – but you get the point. Streamline, don’t slash and burn. Lastly, don’t be discouraged. Instagram, Uber, and WhatsApp all launched during the last recession. What are your tips for keeping customers happy and loyal during downturns? 💬 Credit: Jason Lemkin and Bain & Company. PS 🔔 Follow me for strategies and resources for startups and VCs! Looking to raise capital? 💸https://fundingstack.com/ for VCs and investors 💸https://foundersuite.com/ for startups At only $250/month: Fundingstack gets you access to 221+ global investors. Or you can send me a direct message with "FREETRIAL" and I'll give you a secret access link.
