SaaS Playbook for mitigating churn and identifying growth.

Over the past 10 years I’ve worked heavily with high-growth SaaS companies. During this period, I’ve built and iterated on a list of signals that I've found helpful in predicting churn and unearthing growth.

I wanted to share this lists in a hope that it might spark conversation. I'm always looking to improve and refine the list. Here it is:

? SaaS Growth Indicators:

• Organic Add-ons: Contracts that have organic add-ons over the last year reflect a growing need for your solution.
• Expanding Target User Base: A growing count of your ideal users often indicates the client's investment in relevant areas.
• Maximized License Usage: High deployment and provision rates of purchased licenses denote high utility and satisfaction.
• Integration with Key Systems: If your solution is getting integrated into the client's core platforms like CRM, Email Client, or Analytics Dashboard, you're becoming integral to their operations.
• Tenure of Corporate Agreement: Longevity is a trust signal.
• Powerful and Engaged Advocates: A dedicated champion, especially one with organizational influence, can open up growth opportunities.
• Transparent ROI: When a client vocalizes clear, undeniable benefits from your solution in their language, it's a good time to grow your relationship.

?? SaaS Churn Indicators:

• Shrinking User Base: If there's a downward trend in the headcount of your ideal users, it can be cause for caution. It's often a sign the client is investing in other areas.
• Mergers & Acquisitions/Bankruptcy: Major organizational shifts can shift the power-base.
• Scattered Deployment: Scattered deployments make it hard to develop a common language or embed the solution in day-to-day operations.
• Under-utilized Licenses: If purchased licenses aren't deployed or provisioned, it hints at low engagement. CFO's hate shelf-wear.
• Disengaged Advocates: If your main contact or champion within the company becomes distant, or you fail to add new advocates, it's cause for caution.
• Ambiguous ROI: When a client can't articulate the ROI of using your solution in their internal language.

Deep Dive: One aspect warranting emphasis is the fluctuation in the ideal user's headcount. Growing numbers typically indicate a company's willingness to invest in domains your solution addresses, while a decline might suggest diversifying priorities.

Practical Application: To navigate these signals, I rely on tools like LinkedIn Sales Solutions in my daily role as a sales manager. Monitoring these indicators keeps me aligned with our client's ever-changing landscape, ensuring we remain proactive and responsive. Here is a 1 min video to show you how.

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