SaaS companies often use the traditional top-down sales funnel as their mental model. However, this model is fundamentally flawed because it ends at the 'close' and completely ignores the recurring revenue component, which is the lifeblood of SaaS. The 'bow tie' model is a more accurate representation.
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SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.
Applying a single attribution model, like last-touch, to all channels is a mistake. It undervalues top-of-funnel activities and can lead to budget cuts that starve the pipeline. Instead, measure each channel based on its intended outcome and funnel stage.
A more effective mental model than PLG vs. SLG is analyzing which activities create new demand versus which ones harvest existing demand. Both sales and product can serve either function. Creating demand is always the harder, more critical challenge for any revenue engine.
The 'MQL death cycle' is over. Forward-thinking marketing organizations should align around Net Annual Recurring Revenue (Net ARR) as their ultimate measure of success. This metric, which combines new customer acquisition with retention, forces a focus on the entire customer lifecycle and proves marketing's contribution to sustainable business growth.
Most B2B SaaS companies stop ABM efforts after the initial sale, despite landing only about 30% of an account's potential revenue. The biggest growth opportunity lies in applying ABM strategies post-sale for customer expansion, which prevents a poor customer experience and captures significant untapped revenue.
A one-size-fits-all sales role fails in consumption models. Success requires segmenting the team into specialized roles—new business acquisition, customer onboarding, and account management—each with distinct incentives aligned to their specific function, from initial sign-up to value realization and expansion.
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.
Sales leaders should instill a long-game mindset, focusing on creating lifetime customers and sustainable revenue streams rather than just hitting immediate targets. This involves planting seeds that will generate revenue for years, not just months.
The macroeconomic shift to a high-margin, high-interest-rate environment means SaaS companies must abandon the 'growth at all costs' playbook. Pricing decisions, such as usage-based models that delay revenue, have critical cash flow implications. Strategy must now favor profitability and immediate cash generation.
Move beyond selling features by offering a "Business Process as a Service" (BPaaS) solution. This involves contracting directly on the business outcomes clients care about, such as cost savings or revenue optimization. This model delivers an end-to-end capability and aligns your success directly with your customer's, creating a powerful value proposition.
