Businesses often focus on brand (awareness) and growth (acquisition), but the most profitable engine is customer experience. This includes retention, upselling, cross-selling, referrals, and reviews. Systematizing this third engine builds sustainable momentum and profit.
'Customer obsession' is a one-way street; you can be obsessed with customers who are indifferent to you. Factory reframes this principle to 'create obsessed customers,' forcing the company to focus on the output: building a product and experience so compelling that customers become its advocates.
Move beyond the traditional sales funnel. The "Bow Tie Funnel" visualizes the post-sale journey with conversion at the center. It forces focus on onboarding, retention, expansion, and advocacy, turning a single sale into a self-perpetuating revenue engine fueled by referrals from happy clients.
Most businesses mistakenly focus their marketing strategy solely on growth (lead generation). A complete strategy must also encompass brand strategy (messaging, positioning) and customer experience strategy (retention, referrals) to create a sustainable system.
Instead of focusing budgets on acquiring new customers, businesses should invert their spending to serve existing ones. A powerful growth strategy is to identify the needs of your best customers and create new services or premium options specifically for them, maximizing lifetime value from those who already trust you.
Investors and acquirers pay premiums for predictable revenue, which comes from retaining and upselling existing customers. This "expansion revenue" is a far greater value multiplier than simply acquiring new customers, a metric most founders wrongly prioritize.
Delivering your core service flawlessly is the minimum requirement, not a differentiator. True advocacy is earned by going above and beyond on the surrounding details, like a roofer meticulously sweeping for nails post-job. This ancillary care is what customers remember and share.
A common strategic error is defaulting to ABM solely for new customer acquisition. This overlooks the immense, often untapped, potential for revenue growth within the existing customer base. The highest ROI for ABM frequently lies in driving upsell and cross-sell opportunities with current clients.
While businesses focus on lowering customer acquisition cost (CAC), the real competitive advantage lies in maximizing LTGP. A higher LTGP allows a business to outspend competitors on customer acquisition. LTGP is about keeping customers, which has a higher ceiling for growth than just acquiring them efficiently.
When facing uncertainty across your entire GTM strategy, prioritize the foundational elements. Begin with the customer experience: decreasing time-to-value and increasing expansion (NRR). If you cannot retain and grow existing customers, acquiring new ones is a futile effort that only masks a deeper problem.
Acquiring net new customers is expensive and resource-intensive. A more efficient growth strategy is to focus on expanding business within your existing customer base, treating these upsell and cross-sell opportunities with the same strategic importance as new logo acquisition.