Today we talk about what to do when your company is falling behind. What are the first things you should focus on? How do you prioritize your problems? 

It’s easy to get caught in the weeds and forget that SaaS companies are relatively simple. Before anything else, take a step back and look at the three core levers for ARR growth:

Monetize (expansion)

Upsell and monetize your existing audience & customers

• Grow number of units per account (i.e., expand user penetration).
• Increase ARPU (price optimization & cross-sells).
• Drive advocacy: Turn referrals into new opportunities.

Retain (reduce churn)

Make sure your existing customers stay with you

• Renew customer commitments (minimize churn).
• Minimize down-sells by existing customers.
• Increase features usage and/or usage frequency by existing users.

Win (acquisition)

Get new customers in the door

• Increase win rate (conversion rate from Opp to Win)
• Increase average sales price/deal size (ACV)
• Grow opportunity volume. Make the funnel bigger

Each of the three levers has a specific set of core metrics that you can use to assess their health. Some examples:

Expansion: Users per account, number of users that upgrade, average revenue per unit, cross sells, pricing and packaging

Retention: Number of down-sells, feature usage/frequency, NPS/CSAT scores

Acquisition: Average sales price/deal size (ACV), opportunity volume, conversion rate from opp to win

We also share more frameworks for problem-solving and identifying issues within your business. All that and more in this episode. 

Thanks for listening. 

P.S.
This topic is also covered in the T2D3 Masterclass lecture 13, “Inspect what you expect”.