Human-Centric Mindset Required For Accelerated Startup Growth
As a seasoned advisor in the dynamic realm of startup growth, I've had the privilege of witnessing the evolutionary shifts in business and technology operations – once simply referred to as IT. These experiences have furnished me with a unique understanding of change economics within organizations, as well as a panoramic view of consumer and buyer markets at large.
At the heart of these insights is a simple yet profound truth: every commercial exchange is conceived by humans, for humans.
Regardless of whether it's a B2B solution aimed at accelerating sales or a B2C product focused on skincare, the evaluation criteria remain the same. Did it deliver the expected benefit? Was it user-friendly? Did it alleviate the problem at hand?
The answers to these questions become particularly important in the context of SaaS companies, a sector where I've spent substantial time working. Amidst discussions around Product Led Growth, an unavoidable challenge arises: the necessity for best practices as usage scales, triggering organizational change management.
The key lies in orchestrating collective human action that benefits all participants, an imperative task as we become increasingly discerning consumers both inside and outside our professional lives.
SaaS companies are catching on, recognizing that investments in customer experience (CX) and enablement yield higher retention rates. This insight is pivotal: when you have humans guiding other humans in utilizing software, it results in transformative changes in organizational practices.
Take IdyaFlow, one of the companies we've partnered with. They've created a service marketplace for SaaS companies, empowering them to build armies of implementers, each fervently committed to enhancing customer retention. This strategy extends the reach of the CX team, particularly in uncharted markets.
Reflect for a moment on Salesforce's acquisition of Traction on Demand. The message is clear: a product can only get you so far. Humans need to be guided by other humans towards excellence. What could potentially expedite this process more than a mutually motivated workforce of solopreneurs, who might have once been on your payroll or let go due to various circumstances?
To those who resonate with this, let's not overlook the synergistic equation: ISVs/VARS + CX = Increased Retention + Expansion. And remember, diversifying your services beyond your core SaaS revenues won't compromise your valuation multiples. On the contrary, it can enhance them as you scale, improving your revenue-per-employee ratio.
The formula is simple: fewer employees + increased revenue + increased profit = higher valuation.
The next time you converse with your venture capitalist friends, I'm sure they'll have plenty to say on this subject.