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The best way to grow your SaaS business

January 20, 2014 Article by Lincoln Murphy

If your SaaS addresses a big- or specific-enough problem that people are willing to pay to solve,  you can probably achieve enough growth to result in a decent-enough sized business… in spite of your efforts.

But you didn’t set out to build a “decent-enough” sized business, right?

Don’t you owe it to your shareholders and stakeholders to do more than simply exist?

Your investors and employees – not to mention their families, the charitable organizations they support, and the merchants in their communities – would like to see some type of return on the investment they put into building your company, right?

Well, to get there, you need to be deliberate in your growth… you need to grow because of your efforts, not in spite of them.

Unfortunately, that’s not how many of the SaaS companies I talk to operate…

Look, regardless of the inefficiencies in your – or basic lack-of – marketing, distribution, sales, operations, etc. – the reality is, if you have a great product that solves a real problem for people, you will probably get some customers.

Now, “some customers” could mean you’re doing $10k/year… or $10M/year… it depends.

Unfortunately, I see a lot of companies that get to that point – whatever that point is – and stay there.

They get to this point of having “some customers” and then things slow down or stop.

They stagnate. They stop growing.

Oh, and if there is churn – and there’s always churn – they start going backwards!

Most companies – especially those with a technology-centric leadership team – at this point will buckle down on the wrong things… usually focusing on the product.

They’ll add more features.

They’ll make it faster.

They’ll improve the UI.

They’ll focus inward and on the technology because that’s “easy” and what they ultimately have the most control over.

Reminder… in a #SaaS company, the technology is the easy part

— Lincoln Murphy (@lincolnmurphy) January 17, 2014

 

And while that might get things going for a bit, adding incrementally more customers, maybe getting those customers that wouldn’t convert because your SaaS lacked this feature or that function, this “strategy” rarely brings about the exponential growth everyone was hoping for.

And so it continues… a vicious circle (or cycle, whichever you prefer)… often including a great deal of disappointment and confusion… “why didn’t that work?”

Ultimately, the stagnation that comes from growing in spite of your efforts makes sense if you understand that you’ll eventually reach a point where you’ve basically tapped the market for early adopters or people desperate enough for a solution to their problem that they are willing to figure out – again, in spite of your efforts – that your product will solve their problems.

At some point you need to realize that in order for your company to become what it truly can be, you need to start growing BECAUSE of your efforts… not in spite of them.

You need to have – and execute – on a well-thought out marketing plan, you need to have operations in place that allow you to take full advantage of the SaaS business model, and you need to ensure all aspects of your organization are aligned with and moving toward goals of the company.

The last two there – ensuring operations and your entire organization are aligned with and moving toward the goals of the company – are absolutely critical for growth beyond Product / Market Fit.

Remember, just because you’ve got a product the market wants, doesn’t mean you’ve got a business that can deliver that product efficiently and in a scalable and sustainable way!

Just because you’ve got a product the market wants, doesn’t mean your company can deliver that product in a scalable and sustainable way

— Lincoln Murphy (@lincolnmurphy) January 23, 2014

 

You need to ensure that marketing is delivering high-value leads to sales and sales is closing deals while properly managing expectations that make on-boarding and engagement an efficient experience for all so that Customer Success can take the ball and run with it in a way that moves the company forward… toward your well-established and communicated goals.

Regardless of the stage of your company – from pre-launch startup to high-growth SaaS company – growing because of your efforts is always the better way to go.

It just is.

Think about it… simply relying on serendipity and hope are universally understood to simply not be sound growth strategies, right?

So whether it’s getting to your first 1000 users or your first $10M quarter, you must be explicit in your effort and work diligently with an aligned organization toward the goal.

Unfortunately, throwing stuff at the wall and seeing what sticks or simply doing nothing and hoping that if you build it, they will come, might actually get you somewhere.

The problem is, that somewhere is probably not where you really want to be, and that movement – or worse, momentum – you feel, is just a mirage… a distraction. It’s not real. It’s not sustainable. It’s not scalable.

Ultimately, the big problem when you operate in this way is that you leave it all up to the universe to just send you customers, leave it up to the product to keep the customers interested, to keep them invested in the solution, and to not just stick around but to grow with your product over time.

Man… that’s asking the universe to do an awful lot, don’t you think?

And though they might come a-knockin’, the velocity with which customers find you and decide to give you their hard-earned money, and over time to give you more of their money and to tell others to give you theirs, too, will be much slower than if you go out and make it happen in deliberately.

I encourage you to take a good, deep look at your company and your current situation and ask yourself “are we growing because of our effort… or in spite of it?”

Either way, I can help you accelerate your growth, but the latter requires you to decide that just getting by isn’t going to cut it and that you’re ready to make the changes necessary to reach your goals.

About Lincoln Murphy

I help you Maximize LTV! (1k+ clients, 10k+ pros trained)

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  • Customer Success: How to help Salespeople with Customer Segmentation
  • Customer Success: Determining Which Customers on which to Focus
  • Customer Success: Who Should Handle Upsells?
  • Customer Success: How to Reset Mismanaged Expectations
  • Customer Success: Customer Engagement Across the Entire Lifecycle
  • How to Increase Customer Lifetime Value (LTV)
  • The True Cost of Meetings in Customer Success Management
  • Meetings as a Customer Success Metric: The Misguided Path
  • No Goals, No Customer Success: Unlocking the Power of the Goal Discovery Framework
  • Revenue Roadblocks: How We’re Sabotaging Our Own Growth
  • Good Fit vs. Bad Fit vs. Ideal Customers: The Key to Unlocking Sustainable Growth
  • Opt-In vs. Opt-Out Trials: The Hidden Impact on Customer Retention and Success
  • From Transactions to Relationships: Unleashing Customer Potential with AX
  • Renewal Psychology: From an Adversarial Process to a Celebration of Success
  • Pods in Customer Success vs. Sales: A Side-by-Side Comparison
  • The Role of Pods in CSM Coverage Models: The Evolving Landscape
  • Pooled CSMs: Benefits, Challenges, and Requirements for Success
  • Beyond Touch Levels: Scaling Customer Success through Appropriate Experience (AX)
  • The Goal Discovery Framework for Customer Success Management
  • Storytelling in Customer Success: Use the Power of Goal Discovery
  • Customer Success Scaling: Capacity Planning and Resource Allocation
  • Bridging the Engagement Gap: Keeping Customers Actively Invested
  • Build a Social Proof Machine: Consistently Generate Real Advocates at Scale
  • The Untapped Potential of Social Proof through Earned Advocacy
  • From KPIs to Connection: Transforming Metrics Into Meaningful Relationships
  • 5 Outdated Email Tactics You Need to Abandon in 2024
  • Every Department Must Recognize the Value of Customer Success
  • Retention: Shifting from Reactive to Proactive to Stop Chasing and Start Leading
  • Why High Usage Doesn’t Guarantee Customer Success
  • Scaling Your Customer Success Team Without Losing Control
  • The Art and Science of Continuous Goal Alignment in Customer Success
  • Goal Discovery: The Essential Task You Never Had Time for (Until Now!)
  • Aligning Customer Success and Sales: Bridging the Great Divide
  • Motivating Action: The Hard Truth of Driving Customer Engagement
  • Customer Retention: Proactive, Reactive, and At-Risk Analysis
  • Navigating Partner Success in a Multi-Channel World
  • Unlocking Potential: How to Allocate Customers to CSMs
  • AX-Based Coverage Segments: Customer Success Evolved
  • RevOps Evolved: The Key to Rapid, Exponential Revenue Growth (2024)
  • Redefining Email Engagement: New Metrics for a New Era (2024)
  • Understand, Classify, and Effectively Analyze Churn
  • Customer Negotiation: Discounts, Retention, and Value
  • The Art of Objection Handling in Customer Success
  • Driving Exponential Growth: The Art of Selling to Existing Customers
  • NRR Panic: The Rollercoaster Ride You Never Saw Coming
  • Motivation vs. Discipline: How Knowing the Difference Skyrockets Customer Engagement
  • Why CSM Positioning is so Important (and How to Fix it)
  • Customer Status: The Hidden Motivator You Can’t Ignore
  • The Power of Curiosity in Customer Success
  • Creating Customer Success Playbooks with ChatGPT
  • ChatGPT or Bing: Which AI Tool is Best for Customer Success
  • Customer Success Pros: Stay Ahead of the Game with ChatGPT
  • ChatGPT in Customer Success: Generative Output to Desired Outcome
  • Stop Teaching Your Customers to Ignore You! A Guide to Effective Customer Engagement
  • ChatGPT is a Customer Success Game-Changer
  • Growth Unlocked: The Key to Exponential Account Expansion
  • Customer Success: Defined (2024)
  • Stop Confusing Free Trials and Onboarding (It’s Costing You Customers)
  • The Importance of Consistency in Customer Success Management
  • The Real Reason Your Company Invests in Customer Success
  • Customers Hate These 3 Things (and How to Avoid Them)
  • The 5 Secrets of World-class Customer Success Managers
  • Customer Onboarding: How to Design and Implement an Effective Onboarding Process
  • Eliminate Churn Forever in 5 Simple Steps
  • Customer Success: The Lost Art of Churn Reason Analysis
  • Customer Success: How to Quantify the Impact of Bad-fit Customers
  • Customer Onboarding: How to Design and Implement an Effective Onboarding Process
  • Designing a Sales-to-CSM Handoff that Actually Works
  • What is a good SaaS Churn Rate?
  • Achieve Exponential Growth by Focusing on CAC Efficiency
  • TTFV as a Sales KPI to Drive Engagement and Expansion
  • Time to First Value (TTFV) is a Customer Onboarding Goal
  • Customer Onboarding: AHA! or WTF?
  • Emotional Disconnect During Customer Onboarding
  • Bad Sales Handoffs Cause Customers to Ghost During Onboarding
  • How to Know if Customers are Actually Ghosting you
  • Why Customers Ghost you
  • The Basics of Customer Onboarding
  • Success Potential: Real Customer Success Starts Here
  • Account Expansion: How to Upsell Unsuccessful Customers
  • Customer Growth: Why Lack Of Expansion Is A Really Bad Sign
  • Account Expansion: If You Want To Grow Fast, Do This…
  • Customer Growth: Upselling Hurts Trust (When You Do It Wrong)
  • Customer Growth: The Difference between Sales and Expansion
  • Introducing the BEAST Message Framework for Customer Engagement
  • Introducing the Customer Engagement Communication Model
  • Churn Classification Framework For Customer Success Management (2024 Update)
  • Customer Success and Sales: Why the Latter determines the Former
  • Appropriate Experience is Required for Customer Success
  • What Are The Best Customer Success KPIs?
  • You Can’t Solve Upstream Problems Down Stream
  • Customer Success is a Simple Concept (Don’t Overthink It)
  • Customer Success can’t fit into Existing Frameworks
  • Those aren’t Problems. Those are Customers!
  • Customer Onboarding Success Secret: Don’t Overwhelm Customers
  • A QBR is NOT Required for Customer Success
  • Customer Success: The Importance of User or Customer Onboarding
  • How to Define Roles in Customer Success Management
  • Customer Success: High/Low/No Touch Customer Segmentation
  • Customer Success: Incorporating High/Low/No Touch into Onboarding
  • Customer Success: How to help Salespeople with Customer Segmentation
  • Customer Success: Determining Which Customers on which to Focus
  • Customer Success: Who Should Handle Upsells?
  • Customer Success: How to Reset Mismanaged Expectations
  • Customer Success: Customer Engagement Across the Entire Lifecycle
  • How to Increase Customer Lifetime Value (LTV)
  • The True Cost of Meetings in Customer Success Management
  • Meetings as a Customer Success Metric: The Misguided Path
  • No Goals, No Customer Success: Unlocking the Power of the Goal Discovery Framework
  • Revenue Roadblocks: How We’re Sabotaging Our Own Growth
  • Good Fit vs. Bad Fit vs. Ideal Customers: The Key to Unlocking Sustainable Growth
  • Opt-In vs. Opt-Out Trials: The Hidden Impact on Customer Retention and Success
  • From Transactions to Relationships: Unleashing Customer Potential with AX
  • Renewal Psychology: From an Adversarial Process to a Celebration of Success
  • Pods in Customer Success vs. Sales: A Side-by-Side Comparison
  • The Role of Pods in CSM Coverage Models: The Evolving Landscape
  • Pooled CSMs: Benefits, Challenges, and Requirements for Success
  • Beyond Touch Levels: Scaling Customer Success through Appropriate Experience (AX)
  • The Goal Discovery Framework for Customer Success Management
  • Storytelling in Customer Success: Use the Power of Goal Discovery
  • Customer Success Scaling: Capacity Planning and Resource Allocation
  • Bridging the Engagement Gap: Keeping Customers Actively Invested
  • Build a Social Proof Machine: Consistently Generate Real Advocates at Scale
  • The Untapped Potential of Social Proof through Earned Advocacy
  • From KPIs to Connection: Transforming Metrics Into Meaningful Relationships
  • 5 Outdated Email Tactics You Need to Abandon in 2024
  • Every Department Must Recognize the Value of Customer Success
  • Retention: Shifting from Reactive to Proactive to Stop Chasing and Start Leading
  • Why High Usage Doesn’t Guarantee Customer Success
  • Scaling Your Customer Success Team Without Losing Control
  • The Art and Science of Continuous Goal Alignment in Customer Success
  • Goal Discovery: The Essential Task You Never Had Time for (Until Now!)
  • Aligning Customer Success and Sales: Bridging the Great Divide
  • Motivating Action: The Hard Truth of Driving Customer Engagement
  • Customer Retention: Proactive, Reactive, and At-Risk Analysis
  • Navigating Partner Success in a Multi-Channel World
  • Unlocking Potential: How to Allocate Customers to CSMs
  • AX-Based Coverage Segments: Customer Success Evolved
  • RevOps Evolved: The Key to Rapid, Exponential Revenue Growth (2024)
  • Redefining Email Engagement: New Metrics for a New Era (2024)
  • Understand, Classify, and Effectively Analyze Churn
  • Customer Negotiation: Discounts, Retention, and Value
  • The Art of Objection Handling in Customer Success
  • Driving Exponential Growth: The Art of Selling to Existing Customers
  • NRR Panic: The Rollercoaster Ride You Never Saw Coming
  • Motivation vs. Discipline: How Knowing the Difference Skyrockets Customer Engagement
  • Why CSM Positioning is so Important (and How to Fix it)
  • Customer Status: The Hidden Motivator You Can’t Ignore
  • The Power of Curiosity in Customer Success
  • Creating Customer Success Playbooks with ChatGPT
  • ChatGPT or Bing: Which AI Tool is Best for Customer Success
  • Customer Success Pros: Stay Ahead of the Game with ChatGPT
  • ChatGPT in Customer Success: Generative Output to Desired Outcome
  • Stop Teaching Your Customers to Ignore You! A Guide to Effective Customer Engagement
  • ChatGPT is a Customer Success Game-Changer
  • Growth Unlocked: The Key to Exponential Account Expansion
  • Customer Success: Defined (2024)
  • Stop Confusing Free Trials and Onboarding (It’s Costing You Customers)
  • The Importance of Consistency in Customer Success Management
  • The Real Reason Your Company Invests in Customer Success
  • Customers Hate These 3 Things (and How to Avoid Them)
  • The 5 Secrets of World-class Customer Success Managers
  • Customer Onboarding: How to Design and Implement an Effective Onboarding Process
  • Eliminate Churn Forever in 5 Simple Steps
  • Customer Success: The Lost Art of Churn Reason Analysis
  • Customer Success: How to Quantify the Impact of Bad-fit Customers
  • Customer Onboarding: How to Design and Implement an Effective Onboarding Process
  • Designing a Sales-to-CSM Handoff that Actually Works
  • What is a good SaaS Churn Rate?
  • Achieve Exponential Growth by Focusing on CAC Efficiency
  • TTFV as a Sales KPI to Drive Engagement and Expansion
  • Time to First Value (TTFV) is a Customer Onboarding Goal
  • Customer Onboarding: AHA! or WTF?
  • Emotional Disconnect During Customer Onboarding
  • Bad Sales Handoffs Cause Customers to Ghost During Onboarding
  • How to Know if Customers are Actually Ghosting you
  • Why Customers Ghost you
  • The Basics of Customer Onboarding
  • Success Potential: Real Customer Success Starts Here
  • Account Expansion: How to Upsell Unsuccessful Customers
  • Customer Growth: Why Lack Of Expansion Is A Really Bad Sign
  • Account Expansion: If You Want To Grow Fast, Do This…
  • Customer Growth: Upselling Hurts Trust (When You Do It Wrong)
  • Customer Growth: The Difference between Sales and Expansion
  • Introducing the BEAST Message Framework for Customer Engagement
  • Introducing the Customer Engagement Communication Model
  • Churn Classification Framework For Customer Success Management (2024 Update)
  • Customer Success and Sales: Why the Latter determines the Former
  • Appropriate Experience is Required for Customer Success
  • What Are The Best Customer Success KPIs?
  • You Can’t Solve Upstream Problems Down Stream
  • Customer Success is a Simple Concept (Don’t Overthink It)
  • Customer Success can’t fit into Existing Frameworks
  • Those aren’t Problems. Those are Customers!
  • Customer Onboarding Success Secret: Don’t Overwhelm Customers
  • A QBR is NOT Required for Customer Success
  • Customer Success: The Importance of User or Customer Onboarding
  • How to Define Roles in Customer Success Management
  • Customer Success: High/Low/No Touch Customer Segmentation
  • Customer Success: Incorporating High/Low/No Touch into Onboarding
  • Customer Success: How to help Salespeople with Customer Segmentation
  • Customer Success: Determining Which Customers on which to Focus
  • Customer Success: Who Should Handle Upsells?
  • Customer Success: How to Reset Mismanaged Expectations
  • Customer Success: Customer Engagement Across the Entire Lifecycle
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