The Guide To Retention as a Startup Founder (Internally & Externally)
Do you know the best and worst thing as a founder?
It’s when your customers LOVE your product so much…
That they NO LONGER need it.
Yeah, that’s right…
Good ol’ “happy churn”.
You brought them in, showed them the value, over delivered for them…
And they’re so happy with your service they leave you with a raving testimonial.
But in the same breath, they pull the plug on your relationship.
…
Ouch.
Part of you wants to celebrate…
But another part of you feels like, “Hey, is it wrong I still want them to pay?”
That’s what Charles was talking to me about on our short call the other day.
Charles runs a startup called TeamTown which provides businesses and agencies with unlimited graphics at one flat monthly rate.
He’s made a few hires, and his company is getting traction…
But no matter how many opportunities he creates, he can’t break through while losing 70% of his customers every 6 months.
Sound relatable?
Also, Charles has been struggling with internal churn…
It’s no fun hiring someone, investing in them for half a year, all for them to quit and use all that training to work for someone else.
This is what we worked through together in this week’s GSS episode.
If you’ve ever struggled with customer churn or team churn, this one is for you.
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In the call, Charles and I talked about:
- The path to 1M ARR, and why so many founders lose traction (just after gaining it)…
- How to find the customers that’ll fuel your business growth (that won’t churn after 6 months)…
- How do you hire right from the get-go? And who should you hire next? (hint: it all has to do with your calendar)…
- Are there patterns in your data even when you’re just starting out? (How to make decisions even when you’ve only had a few customers)…
- The “I can’t work with you ’til I’ve worked with you” mindset I put ALL my potential hires through before they make it onto my team.
At the end of the day, the holy grail for any business is when your expansion revenue grows faster than your churned MRR.
And the fastest way to get there is to bust the churn you have and grow your existing accounts.
Once you get this right, the sky’s the limit.
And that’s what we’re going to work on in today’s GSS episode.
Let me know in the comments your biggest takeaway.
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Dan Martell is a serial entrepreneur, an investor in 40+ startups like Intercom, Udemy, and Unbounce and the creator of SaaS Academy, helping over 500 B2B SaaS founders scale faster. He’s founded five SaaS companies and successfully exited three of them. If you want to scale faster without hitting the usual roadblocks, make sure to follow him on Youtube, Facebook, Instagram, LinkedIn & Twitter.
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Originally published at https://www.danmartell.com on May 24th, 2021.
