The number 1 growth hack

From Jason Lemkin, in Jason Lemkin: The Right Sales Metrics for Your SaaS Startup:

Everyone’s got growth hacks – some work well, some don’t. There are a whole group of entrepreneurs that have already had one successful SaaS company, and they’re working on their second SaaS company. You want to know what all of these guys are doing? They’re way over-investing in the beginning in customer success. Most first-time entrepreneurs hire one person for success, and then do it as cost center and hire maybe one customer success manager for every $2 million in revenue. Those of us that have done it before know that making your customers happy isn’t just a good thing to do, it creates all your subsequent revenue down the road – 80% of it. Overinvest in customer success – that’s my #1 growth hack. That doesn’t get you to your first 10 or 20 or 100 customers, but that’s the best way to turn those 100 customers into 1,000.

(1) See Product strategy — retention trumps acquisition and Why retention is the key to growth.
(2) Thank you Andrew Fine for the tip.

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