The document discusses key decisions SaaS product businesses must make to grow, including defining important metrics like revenue, customer acquisition cost, and churn. It outlines potential roadblocks to disruptive growth like product development, marketing, and support. The document also discusses frameworks for assessing growth opportunities, like the Ansoff Matrix for evaluating new vs existing markets and products, and the BCG Matrix for prioritizing investments. Key trade-off decisions are discussed, like allocating resources between question mark vs star products and short-term vs long-term revenue goals. The overall document provides guidance on strategically planning growth by setting priorities and metrics.
Strategize a Smooth Tenant-to-tenant Migration and Copilot Takeoff
Growing Your SaaS Product Business
1. Decisions You Must Make
to Grow Your SaaS Product Business
Originally Presented at Dreamforce ‘13 Founders Forum as
“Cloud Business Fundamentals: 5 Rules to Live By”
John Gibbon
@johngibbon
johngibbon.com
2. What growth? SaaS metrics
Revenue growth (recurring)
Product capabilities
Average revenue per customer
Cash
Churn / net promoter score
Customer adoption
Customer acquisition cost ratio
Market share / recognition
Profitability
@johngibbon
3. Your roadblocks to disruptive growth?
Define
Design / develop
Partner
Market
Sell
Implement / support
(photo from Arnoldit.com)
How have they changed?
@johngibbon
5. Growth strategy: Ansoff matrix
Current
Products
New
Products
Current
Markets
Market
Penetration
Product
Development
New
Markets
Market
Development
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10. And what opportunity (product) success metric?
Revenue
Market share
Competitive differentiation
New users
Increased usage
Increased NPS
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11.
12. Market Growth Rate
Boston Consulting Group Growth Share Matrix
50%-
Stars
Invest
10%-
Cash cows
Question marks
?
Accelerate a Few
?
Divest Most
Dogs
Harvest
0%
Liquidate
10x
0.5x 0.2x 0.1x
2x 1x
Relative Market Share
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13. What trade-off decisions should you be making?
Question marks vs. stars
Stars vs. cash cows
New market vs. existing market
Short term vs. long term revenue
Revenue vs. usage
Client A vs. client B
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15. “SaaS Business Fundamentals” – Handout
1) Your Top Two Company ____________ (Growth Metrics)
1._________________________
2._________________________
What needs to change? ____________________
What are next steps to create this change?____________________
2) Your Top Two Obstacles to ___________ (Disruptive Growth)
1._________________________
2._________________________
What needs to change? ____________________
What are next steps to create this change?____________________
3) Your Best Two ____________ (Directions to Grow)
1._________________________
2._________________________
What needs to change? ____________________
What are next steps to create this change?____________________
@johngibbon
16. “SaaS Business Fundamentals – Handout
4) (Pick One) Why This Opportunity & What _______________ ? (Success Metrics)
1._________________________
2._________________________
What needs to change? ____________________
What are next steps to create this change?____________________
5) Where Are Products in BCG Matrix and What ________________ Should Be Making? (Trade-off Decisions)
1._________________________
2._________________________
What needs to change? ____________________
What are next steps to create this change?____________________
@johngibbon