🔆 How is your ability to scale impacted by the customers you chose?

Scoring a new customer makes us feel we’re winning with our SaaS business. But, unfortunately, the feeling of victory is often short-lived.

Closing the deal is one thing. Creating a fan is another thing. So although it might be that we can help them functionality-wise, still, only some customers turn into a fan. And that’s impacting our ability to scale.

Here’s the thing

Ill-qualified customers hurt the business more than we often want to acknowledge. I refer to this as the trickle-down effect.

  • We want repeatability, but these customers will always remain exceptional cases
  • Fans value our platform for what it was built for, but these customers resist seeing that as valuable
  • Fans rave about the peak moments they experience, but these customers moan about all the gaps

As such, this is what happens next.

  • Your R&D department is distracted trying to fill the unfillable hole of requirements from exceptional cases.
  • Your Customer Success team burns valuable hours trying to please customers who will only be partially pleased.
  • The slickness of your solution, loved by your fans, gradually blurs into a monster, dropping CSAT rates and compromising CLTV.

I don’t have to tell you what happens next… unpopular measures.

It all starts by recognizing this. The trickle-down effect is real – and it takes guts to address it. But doing so is a win-win for everyone: Your business, customers, and investors. The only ones that will hate it are your competitors.

Question for you to reflect upon:

On a range of 1-10: How’s your ability to scale impacted by customers that you shouldn’t have accepted in the first place? What could you change today to turn the tide?

Be Remarkable

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