Fix Churn Before Demand Gen
Focusing on demand gen is a mistake when other fundamental pieces of your growth engine are broken.
The 4 essential areas to focus on:
- Fix Churn: Improve metrics like 90-day retention, LTV and net retention.
- Drive Expansion: Scale revenue from your existing customer base with cross-sell and upsells.
- Improve Adoption: Increase usage from customers with better onboarding as they try or buy your product.
- Increase Close Rates: Ensure your SQL to Close Rates are above 30%, ideally above 40%.
Once the above 4 are handled, focusing on improving demand gen becomes a lot easier.
You can spend a lot more money to acquire customers because your ACV/LTV is higher and you need fewer leads to reach CAC Payback Period.
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