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Three Levers to Scale SaaS or any Startup Successfully and Sustainably.

Author

Chintankumar Maisuria
October 14, 2024

In partnership with

Read time: 3 minutes.

Welcome to the 67th edition of The Growth Elements Newsletter. Every Monday, I write an essay on growth metrics & experiments and business case studies.

Todayโ€™s piece is for 5,100+ founders, operators, and leaders from businesses such as Shopify, Google, Sage, Hubspot, Zoho, RateGain, Zaggle, Servcorp, and Apollo.

Happy Monday!

NPS, Growth, and Profitability - three levers to scale SaaS or any startup successfully and sustainably.

These metrics drive user satisfaction, efficient growth, and financial health.

[1] ๐๐๐’ (๐๐ž๐ญ ๐๐ซ๐จ๐ฆ๐จ๐ญ๐ž๐ซ ๐’๐œ๐จ๐ซ๐ž)

  • Measures customer loyalty by tracking how likely customers are to recommend your product.

  • NPS of 50+ see 2x faster organic growth.

  • Strong NPS leads to better retention, which is 5-25x cheaper than customer acquisition.

[2] ๐†๐ซ๐จ๐ฐ๐ญ๐ก (๐”๐ฌ๐ž๐ซ ๐€๐œ๐ช๐ฎ๐ข๐ฌ๐ข๐ญ๐ข๐จ๐ง ๐š๐ง๐ ๐‘๐ž๐ญ๐ž๐ง๐ญ๐ข๐จ๐ง)

  • PLG model reduces CAC, leading to efficient, scalable growth.

  • Companies with 30% QoQ growth in DAU scale faster.

  • Land and expand model increases ARPU by 25-40% through upselling.

[3] ๐๐ซ๐จ๐Ÿ๐ข๐ญ๐š๐›๐ข๐ฅ๐ข๐ญ๐ฒ (๐”๐ง๐ข๐ญ ๐„๐œ๐จ๐ง๐จ๐ฆ๐ข๐œ๐ฌ ๐š๐ง๐ ๐’๐œ๐š๐ฅ๐ข๐ง๐  ๐‘๐ž๐ฏ๐ž๐ง๐ฎ๐ž)

  • LTV/CAC ratio > 3:1 is a key profitability marker.

  • Startups with this ratio achieve 50% higher profitability.

  • Focus on improving unit economics to scale efficiently and maintain low operational costs.

  • Startups that break-even often see a 3x increase in ARR post-profitability.

Balancing these three levers helps build a sustainable foundation for long-term success and scale effectively.

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Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria

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