0 / I wrote an article about how SaaS companies should focus on efficient growth in uncertain times, based on analysis from the last economic crisis in 2008. While they're not the same, there's a lot to learn -- a thread 👇 @kimberlywtan @martin_casado @davidu
1 / Some observations, based on data from SaaS companies that were public in 2008: SaaS revenue was still growing, just more slowly.
2 / SaaS companies focused on becoming more efficient, and many maintained this efficiency even when the market began to recover.
3 / This is not to compare today's crisis to 2008's. Instead, it's a reminder that in uncertain economic times, SaaS companies should focus on efficient growth. How?
4 / Make retention the top priority and expect downsell in the short-term. Churn may spike especially among SMBs and impacted customer segments.
5 / Focus on profitable new customer acquisition by focusing on a 12 month CAC payback.
6 / And preserve runway by understanding cashflow, managing costs, and where possible, restructuring contracts for upfront payment.
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