Farm Don't Hunt: The Definitive Guide to Customer Success by Pizarro Fernando & Nirpaz Guy

Author:Pizarro, Fernando & Nirpaz, Guy
Language: eng
Format: epub
Published: 2016-03-21T00:00:00+00:00

Chapter 8:

Harvesting

After much time, care, and resources have been invested, a farmer’s crop is finally ready for gathering. Now is not the time for her to sit back and relax! In fact, harvest time can be the busiest time of the year, a time when badly assigned or executed work will most directly lead to lost yield. So, during harvest time a farmer uses different techniques and often brings in specialist workers to gather the crop.

In a highly competitive environment, the rate at which you renew and upsell affects both the speed at which you grow and the size that you can achieve. Yet many companies are more focused on new user acquisition than on a well-managed renewal and upsell process, to their detriment. In fact, a recent survey from Pacific Crest Partners showed that small SaaS companies of less than $1.25MM in Annual Recurring Revenue (ARR) rely on upsells for only 11% of their sales, while large ones (greater than $40MM in annual revenue) rely on upsells for 30% of their revenue. While this may seem intuitive, it is not a license for small companies to delay focusing on optimizing their Renewal and Upsell process. On the contrary, small SaaS firms that had the highest portion of their revenue from upsells grew the fastest, as well.

The CSM View:

Every month Mike and the other CSMs on his team sit down to review their Renewal pipeline. Today they are looking at the accounts that will be renewing in 90 days. Though this is quite far out, they know that if there are serious issues they have to jump on them now. Sure enough, Mike notices that two of his accounts have escalations that are quite old. He checks into them and realizes that they are product requests that have not yet been added to the development queue. Knowing that just keeping them posted can make a difference, Mike takes a note to check with the Engineering team so that he can communicate an update to those customers.

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