In subscription or repeat-purchase businesses, the customer relationship begins at the point of sale, it doesn't end. The funnel metaphor is limiting because it ignores the crucial post-acquisition phases of adoption, expansion, and loyalty, where most value is created.
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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.
Reacting to churn is a losing battle. The secret is to identify the characteristics of your best customers—those who stay and are happy to pay. Then, channel all marketing and sales resources into acquiring more customers that fit this 'stayer' profile, effectively designing churn out of your funnel.
Everyone obsesses over Net Revenue Retention (NRR), but Gross Revenue Retention (GRR) is the real indicator of product health. GRR tells you if customers like your product enough to stay, period. A low GRR signals a core problem that expansion revenue in NRR might be masking.
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.
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.
CLTV isn't just a metric; it's a strategic map. Understanding purchase frequencies and the entire customer lifecycle should be the foundation for creative choices, promotional timing, and messaging. Many brands neglect this, but it's the key to balancing acquisition with profitable retention.
Move beyond simple product usage for retention. Design a clear "adoption ladder" with defined milestones that encourages customers to deepen their relationship with your brand—progressing from user, to community participant, to podcast guest, and even to business partner. This creates immense stickiness and fosters evangelism.