Dear SaaStr: Growth Has Slowed for 2 Years Now. What Can I Do To Reignite The Energy?
If growth has been slowing down constantly and linearly for two years, you’re in a tough spot, but it’s not hopeless. The key is to break out of the inertia and make bold, decisive moves. Here’s what I’d do:
-
Be Brutally Honest About Product-Market Fit
If growth has been flatlining for this long, you may have lost some of your product-market fit. It doesn’t mean your product is bad—it just means the market may have shifted, or your product hasn’t evolved fast enough. Start by talking to your happiest customers. What do they love? What do they need more of? Build what they’ll pay more for. If you still have leads coming in, listen carefully to what they’re asking for and adapt. -
Focus on Your 2x Advantage
Sometimes, the answer is to double down on what’s already working. Look at your customer base—where do you have a clear 2x advantage over competitors? Even if it’s a tougher segment or not the one you’re most excited about, winning more in that area can reignite growth. For example, going upmarket often works because larger deals can offset slower lead flow, but it requires a cultural shift and commitment. -
Reignite the Team with New Energy, Bring in 1 Strong New VP.
After two years of slow growth, morale is probably low. You need to inject fresh energy into the team. A new VP that gets sh*t done almost always helps. Bringing a few key hires—people who bring a new perspective and aren’t weighed down by the past. Or, it could mean setting micro-milestones, like hitting usage or NRR targets, to create momentum and small wins. -
Experiment with Pricing and Packaging
If you haven’t revisited your pricing in a while, now’s the time. Test new tiers, usage-based pricing, or premium features. Just be careful not to alienate your existing customers. The goal is to align pricing with the value you’re delivering and find ways to extract more revenue from your best customers. -
Find New Growth Channels
You can’t fall into a rut. If your current channels are tapped out, you need to explore new ones. This could mean expanding into a new vertical, launching a partnership program, or even going international. Just make sure you’re not spreading yourself too thin—pick one or two new bets and execute them well. -
Invest More into Onboarding and Customer Success to Drive NRR
If you’re not already focused on Net Revenue Retention (NRR), start now. Upselling and expanding existing accounts is often the fastest way to grow when new customer acquisition slows. Make sure your customer success team is fully resourced and incentivized to drive expansions. -
Cut the Dead Weight
If there are parts of your business that aren’t working—whether it’s underperforming products, unprofitable customer segments, or bloated teams—cut them. Focus your resources on the areas with the highest ROI. This is about getting lean and disciplined so you can reinvest in growth. -
Go Visit More Customers In Person. Now.
They almost always show you a way, at least to a bit more growth. -
Don’t Be Afraid to Make Big Bets
Sometimes, you need to take a risk to break out of a slump. This could mean launching a new product, acquiring a smaller company, or pivoting to a new strategy. Just make sure you’re not betting the entire company—calculated risks are the way to go. -
Act Now—No Ostrich Behavior
The worst thing you can do is nothing. You can’t turn a tanker around overnight, but you can start making changes today. Whether it’s talking to customers, testing a new pricing model, or hiring a key leader, take action now. Deceleration is survivable for a few quarters, but if it drags on for 15-18 months, you’ll be dead in the water 7.
The bottom line? You need to shake things up. Two years of linear growth means what you’re doing isn’t working anymore. Be bold, be decisive, and don’t let inertia kill your company. You’ve got to show your team—and yourself—a clear path to the next stage.
And a related post here:
