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.

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

4. Iterative growth: obey the funnel
 Define
 Design / develop
 Partner
 Market
 Sell
 Implement / support
@johngibbon

5. Growth strategy: Ansoff matrix
Current
Products
New
Products
Current
Markets
Market
Penetration
Product
Development
New
Markets
Market
Development
@johngibbon

6. Where grow?
Similar customers
market
penetration
Bigger / small
customers
Products
product
development
Services
market
development
Industries /
verticals
Geographies
@johngibbon

7. Is there an opportunity?
 Customer pain? power?
 Market big? growing? changing?
Total market > total addressable market > your share
@johngibbon

8. Assessing growth strategy
 Where should you go?
 Why will you be successful there?
 How do we get there?
@johngibbon

9. Spicy

10. And what opportunity (product) success metric?
 Revenue
 Market share
 Competitive differentiation
 New users
 Increased usage
 Increased NPS
@johngibbon

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
@johngibbon

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
@johngibbon

14. Thank You!
@johngibbon

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