What were aspects of your startup that were easier than you anticipated?
The part I didn’t originally get was how relatively easy is it to grow exising accounts and account size if your customers are happy.
We segmented customer retention by Small, Medium and Large accounts after about 24 months and saw a pattern that I now know is fairly common: ~85% revenue retention from our Very Small Businesses; about 105% from Mid-Market; and about 120% from Larger Customers.
And they key is — that 120% revenue growth annually from Larger Customers as a cohort (and even the 105% from Mid-Market) compounds. 3, 4, 5 years out to something really large. In a 3–5 years, you’ve can double the revenue from your existing customer base, or at least a segment of it.
http://mndt.ch/2khiSd2 MindTouch covers Jason Lemkin and Catherine Blackmore, two SaaStr keynote speakers, touching on Customer Success from Gainsight’s Pulse Conference in Oakland. They will be presenting at SaaStr on SaaS success stories from the front lines.
And that annual 120% revenue retention is much, much easier to get than a new customer. Not easy. This is why I early became a huge convert for doing Customer Success right. You do have to deliver. But so much easier than starting from scratch with a new prospect — if they are happy.
The challenge here is growing your accounts takes time. It’s tough to see much happen in a quarter or two. Because of that, the organization tends to get focused on the hot, incoming prospects instead. But over several years, it’s your most powerful lever for growth.
Nick Mehta (CEO, Gainsight) moderates this panel with Catherine Blackmore (GVP Customer Success, Oracle Marketing Cloud), Maria Pergolino (Senior VP Marketing, Apttus), and Emilia D’Anzica (VP Customer Engagement, WalkMe) on how to turn customers into advocates and why having a referenceable customer is more important than just making a sale.