To create and sustain a growing and profitable B2B SaaS business you need a powerful revenue retention and expansion engine at its heart.
As with all powerful and reliable engines, your revenue retention and expansion engine must be constructed with components that fit seamlessly together. This will set your business on cruise control towards positive Net Revenue Retention (negative churn) year over year.
There are many components that must combine to build your engine. These include product functionality, pricing structure, vertical/industry focus, adoption plans, churn risk management framework, customer success model (high/low/tech touch) and outcome definitions, to name but a few.
However, the most CRITICAL component that has to fit with all other components to ensure a high performing engine is:
To ensure efficient and effective running of the engine, your customers must fit with the design of the other engine components. Therefore the strategy with which you select and acquire customers to (i.e. your Sales strategy) is key to how successfully your business will retain and expand revenue.
There are 5 key plays in your Sales strategy that, when well designed and executed, can ensure acquisition of customers that are a good fit for your revenue retention and expansion engine. These are:
Prescribe Value-based Outcomes to your prospects
Qualify prospects in line with your Ideal Customer Profile
Secure agreement by prospects to meet YOUR dependencies
Include Customer Success Architect roles in your sales opportunity teams
Start onboarding during the sales cycle
By integrating these 5 plays into your Sales strategy, you will consistently acquire customers that can be retained and expanded. In essence, you will be integrating your Sales strategy with your Customer Success strategy and vice-versa.