🏰 #27 Are you sure you have a growth problem and not a retention problem?

✅ 1 to 3 bite-sized case studies to grow your SaaS

✅ 1 to 3 curated resources from top-notch experts

GROWTH _retention

Are you sure you have a growth problem and not a retention problem?

Having a retention problem is like trying to fill your bathtub without a plug.

Your acquisition is like a flow of water; it will fill the bathtub to a certain level, perhaps covering your feet, but unless you fix the leak, you won’t be able to fill the bathtub completely.

Why Retention Matters

Better retention = better growth. Companies with a net retention rate over 100% or gross retention over 85%, grow 1.5-3x faster. (Retention Trends, Chatmogul).

👉 Fixing retention is your first milestone in building a scalable business.

Where to start?

Dan Wolchonok, head of product and analytics at Reforge, spoke about the three different stages of retention:

→ Week 1: Can you get your users to use your product more than once?

→ Weeks 2-4: Can you establish any pattern of usage?

→ Weeks 4: How does your product become an indispensable tool?

psst..the entire retention guide it’s at the end of this email 😉 

GROWTH _retention

2) Winning even when you lose: Exit Interviews

If a customer is leaving, so be it. The goal of this interview is not to get him back, but rather to have a word with them before they walk away.

Before he exits, seize the opportunity for a final conversation.

→ A chat is good, a call is great, a video call is fantastic.

Even if you let them rant, you will learn from their reasons for leaving and apply this knowledge to improve your product and offer.

GROWTH  _revenue

3) Leads alone do not keep a business running. It’s the pipeline and revenue dollars that matter

Great post from Sam Kuehnle

Retention is King by Dan Wolchonok of HubSpot

🛠 TOOL OF THE MONTH

I decided to start recommending the tools I use every day.

This month is beehiiv. It’s the tool that I use to run this newsletter.

I will take more time explaining why I think it is better than other tools in upcoming editions, but one thing that I found super interesting is that they have built a growth engine in their platform 🤯

This growth engine is a marketplace that allows you to buy or sell subscribers (via referrals).

→ A new channel of acquisition.

→ A new channel of monetization.

As someone who does growth and loves to run experiments, I’m having so much fun with it. I will share some results soon.

SUGGESTION BOX