If we can continue to win customers, we’re growing a business a lot, like a traditional business would where they constantly have to win customers. And the good news is, if we keep them, then we start the beginning of each year out with a whole bunch of customers we already have.
But the best companies figure out ways to grow individual customers. What this means is, can we find ways data customers who paid us $1 last year to pay us more than $1 this year. And there are several techniques that you can use, you can certainly raise their prices, if you have a subscription-type business, you can upsell them into another package, you can cross-sell them into something that’s similar.
“How to grow a subscription business? Step one, win another customer. Step two, keep that customer. Step three, grow that customer.”
– Mark Stiving
Or if we’ve chosen a good pricing metric, we can help them use more of our product, which means they’re good at getting more value, and they’re paying us more money. There are lots of different ways that we can grow a customer. The key is way too many companies completely ignore this.
And we ignore this because we don’t really have to deal with it. If you’re not winning new customers, you can tell that’s a problem. And if you’re turning customers out, you can tell that’s a problem. But there’s nobody watching, are you growing your customers and claiming it’s a problem?
If you’re not? Well, I’ll claim it’s a problem. If you do not figure out how to do it, you’ll grow much much faster.
Connect with Mark Stiving:
- Email: email@example.com