Archives for March 2017

The Cost of Bad Fit Customers: The $1.2M Churn and Burn to Learn Mistake

Brazil flagTambém disponível em Português por Superlógica

Do you need to churn and burn customers to learn? A lot of people in startups think so. In fact, a lot of people in companies of all shapes and sizes think so.

Think you need to churn and burn through thousands of customers before it starts to have a negative impact on your growth velocity and costs? I’ll show you why that’s just not true.

If you think churning and burning customers so you can learn is the way to go, sit back and let me tell you a fun little story about an expensive lesson that didn’t need to be learned.

In fact, what I’ll share is why startups need to build-in Customer Success from the ground up, and established companies need to bring Customer Success into their universe ASAP.

First, I have to acknowledge what Steve Blank famously said: “Your startup is essentially an organization built to search for a repeatable and scalable business model.”

This means it’s totally accurate to say that, at first, you don’t know what you don’t know.

The problem is that some people use that startup definition as an excuse; a crutch to never have to make a real decision (“we don’t have the data – yet”).

But there are a lot of things you DO know but simply – and to your detriment – choose to ignore.
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