A good read: paying attention to customer churn rates is not only important with SaaS models but with e-commerce retailers as well. When you are too focused on customer ramp-up you oftentimes forget to deploy a robust customer engagement program as well – this element should always be on product roadmap with any new release.
As executive-in-residence at Scale Venture Partners, I’ve worked with a number of SaaS startups to help them refine the efficiency of their operations. One of the things that is often neglected is customer churn. Early focus on churn helps build discipline that becomes even more important as a company grows to $100 million or more in revenues.
In the bad old days of on-premise Enterprise software, a startup was considered to have traction when it got its first dozen paying customers. These were typically six-figure deals and required a lot of heavy lifting to get the customers into production. While the old-school field sales model was not particularly efficient, it had the virtue of driving an organization toward making early customers successful.
When you have hundreds or thousands of customers, though, things can become rather anonymous and it’s harder to make sure customers are using your product correctly. If customers…
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