In today’s crazy world, more and more vendors are seeing customers that want to cancel annual or longer contracts.
What should you do?
The simple answer “of course” in that yearly contracts can’t be canceled — per se. That’s the whole point of whatever explicit or implicit discount you give for doing a yearly contract (vs. monthly or quarterly). And the language likely will plainly say the contract cannot be canceled.
But … it’s just a contract. So a few qualifiers:
If you haven’t received pre-paid cash, it doesn’t matter. Do NOT threaten to send the customer into collections – period. Especially now, these days. There is no effective way to enforce a customer contract if the customer doesn’t want to pay and doesn’t need the service any longer. Do not create drama. This won’t work, and it will turn someone who just might be a customer again into someone Continue reading "What To Do When A Customer Wants to Cancel A Contract"
Founder Guillaume Cabane provides information on when and how to run a growth team and provides multiple examples of growth models. Use these tools to determine how to run growth experiments at your organization.
Want to see more content like this? Join us at SaaStr Annual 2020.Guillaume Cabane | Founder @ Growth Ex MachinaFULL TRANSCRIPT BELOW
I’m Guillaume Cabane and today I’m going to talk about The Playbook To Running Growth Experiments At Scale. The first thing that I want to put out immediately for growth people and for founders is that I want to trash out all the KPIs and we’re going to focus just on revenue. That seems obvious because, see most companies don’t do that. But before I go into the dough here, who am I, what have I done, very quickly, I worked at a few of those recognizable companies, most notably lately
For many of us, these are challenging times.
This may be of the simplest SaaS posts of all times, with some of the most basic advice, but it’s worth talking about anyway.
When things get better — you will need everyone great you have now:
You will need every scaled sales rep that hits quota. The leads will keep coming, and growing. Yes, sales cycles may lengthen a lot, and deals slow way down. But when they shorten, you’ll need every trained, scaled rep you have to service the leads you have now and then.
You’ll need every great engineer. You know this. The best product doesn’t always win, but the most agile teams often do. As time goes on, they produce exponentially more good features and software than less agile teams.
Nothing matters but recruiting and using your personal network. Sam Blond, CSO at Brex explains why recruiting, networking and employee happiness is the key to this playbook on recruiting your sales team.
My name’s Sam Blond. I’m doing The Playbook To Recruiting Your Sales Team.
Before I start, what an awesome event. I attend these types of events periodically and these SaaStr events are just always a cut above. Once again, amazing job to the SaaStr team. I’m really honored to share this stage with some really bad ass speakers. Several of my former bosses, Kathy Lord that was just up here actually started at Intacct right out of college. She was my first VP of Sales. Hi there. Brendan Cassidy, second VP of Sales
It can really tough to think through the short-term pressures of churn. SMBs are hurting the most, and the churn will be highest there. Enterprises are churning less, but slowing new purchases way down.
Just remember one thing as your North Star here: No Customer Wants to Leave a Vendor They Count On.
You may have 1000s or more customer. But often, your key stakeholders only manage a few key, core applications they need. And that the organization looks up to them to deliver with:
No one wants to lose their CRM.
No one wants to cancel their call center.
No one wants to lose their core ERP, what they run their business on.
Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.
As investors struggle to price the stock market as economic and political news continues to break, the private market is entering a rough period. It seems increasingly likely that the period of disruption due to COVID-19 will persist for months, if not quarters. That means missed Q1 and Q2 revenue growth, bookings, and the like from startups domestically and around the world.
And that’s the bullish case. For some cohorts of startups, the outlook is even worse. Think about travel startups, ride-hailing upstarts, and any grouping of private companies that pursued a high-burn, high-growth model; that final category is about to run into the twin issues of the inflexibility of cost structure and the impact of slowing sales. That alone would make fundraising more difficult; toss in a deflating stock Continue reading "Have hundreds of unicorns missed their exit window as Q1 IPOs grind to a halt?"
Whatever this downturn looks like, it won’t be the same as ’08-’09. Which was brutal.
But we did learn some things from it that were somewhat counter to our expectations.
What we learned from ’08-’09 in SaaS:
First, SMB churn went through the roof — as SMBs went under much more quickly and often. As soon as the economy went south, SMBs started to simply go bankrupt and/or shut down. And even before they did, panic set in in businesses with no cash reserves. The first thing SMBs did was look at their credit card payments and cancel everything they could. Almost irrationally. Anyone processing a lot of SMB and credit-card deals saw churn probably double. We did.
But second, enterprise customers all renewed. Almost all of them. Even in the darkest days of 2019, enterprises still .. functioned. They still needed
We’re obviously in a very unique situation today. The pace at which Corona is impacting us all right now is so fast, it’s hard to keep up. Even just in the past 2 weeks, SaaStrAnnual.com has gone from what we thought was one of the safest events out there to … rescheduled for September.
Today is different from other times. But I suspect in SaaS, it will be like ’08-’09 downturn — just faster. I suspect the moment we’re past some point in the Corona virus cycle, everyone will be anxious to get back to work and resume normalcy. We’ll see.
But for as long as business is in flux, let’s take a look back at what happened to us as a SaaS vendor in ’08-’09, and maybe what learnings you can leverage there.
At least right now, ’08-’09 was much more brutal.
Ben Braverman explains how Flexport entered a competitive market with a unique model and continues to grow. Hiring senior leaders can set companies up to fail and see how sticking with a current, successful model can be the key to hypergrowth. Rely on your success, know you are doing something right and scale faster.
Want to see more content like this? Join us at SaaStr Annual 2020.Ben Braverman | CRO @ FlexportFULL TRANSCRIPT BELOW
That was the most over the top entrance that the sales leader for a company that moves boxes around the world has ever gotten. My name is Ben Braverman. I’m Chief Revenue Officer at Flexport. We do international shipping, so I’m honored to be speaking to people like you that were smart enough to get into high margin businesses. We are in a different business. We move boxes around the world for our