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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.

Today’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] 𝐍𝐏𝐒 (𝐍𝐞𝐭 𝐏𝐫𝐨𝐦𝐨𝐭𝐞𝐫 𝐒𝐜𝐨𝐫𝐞)

  • 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] 𝐆𝐫𝐨𝐰𝐭𝐡 (𝐔𝐬𝐞𝐫 𝐀𝐜𝐪𝐮𝐢𝐬𝐢𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐑𝐞𝐭𝐞𝐧𝐭𝐢𝐨𝐧)

  • 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] 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 (𝐔𝐧𝐢𝐭 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜𝐬 𝐚𝐧𝐝 𝐒𝐜𝐚𝐥𝐢𝐧𝐠 𝐑𝐞𝐯𝐞𝐧𝐮𝐞)

  • 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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