Growth Rate vs Growth Economics

by | Oct 20, 2023 | Go To Market

Most SaaS companies are still playing by the old playbook – chasing vanity metrics and using Growth Rate as the only measure of success. Here’s the truth VCs won’t tell you…

Growth isn’t just some % on a spreadsheet. It’s about building a sustainable business model.

Dive deeper.
Look beyond the “how fast.”
Focus on the “how right.”

🔥 Growth Economics Essentials:
👉 Monetisation: Pricing isn’t just numbers. It’s strategy.
👉 Product: Continuously evolve. The market won’t wait.
👉 Churn: How many are loving your service enough to stick around?
👉 CAC: Your real cost to win a customer – not just ads but ALL expenses.
👉 LTV: Don’t just look at their wallet today. What value will they bring in the long run?
👉 CAC Payback: How long till you break even on that customer acquisition spend?
👉 Expansion Revenue: It’s not just about getting new customers. How can you grow WITH your current ones?

Scaling: Think broader, think smarter.

🔥 And yes, Growth Rate matters but…
👉 MRR & ARR Growth: Not just rates but real, sustainable revenue.
👉 Customer Growth: Numbers are great but are they the right customers?
👉 Net Revenue Retention: Are you truly growing? Or just replacing churned revenue?

There’s more to the game – like the Rule of 40 and the LTV:CAC balance.

Don’t just grow. Grow smart. 🧠