Micro Blog: Increasing Revenue Week 1

By Lauren Bahorich - January 06, 2020


Today, Lauren Bahorich, Venture Partner with GST shares with us how she and the GST team advise Growing B2B SaaS Companies on the manifold ways to increase revenue.   

Increasing Revenue: Adoption Leading to Expansion

Following up on our Quality Revenue Series, once a customer is onboarded, they should be adept at using your product to meet their needs. They understand and can see results from the value of your product.

Your job is not over, however! You have already invested in establishing a deeper, working relationship with the customer that needs ongoing nurture. The foundation of your continuing partnership is mutual relationship and trust. As you continue investing in your customer relationships, the customer becomes fully adopted. 

A fully-adopted customer pays dividends for your company. Once a customer is fully adopted, the likelihood of their churn decreases and their expansion increases. VC Tomasz Tunguz highlights the impact of net churn: “A healthy, growing SaaS company with -5% churn has 73% higher revenue than one with 5% churn.” This increase in revenue substantially adds to your top-line revenue without any increases in CAC. Moreover, a fully-adopted customer has the potential of becoming an advocate for your company.

At a high-level, the adoption process is relatively straightforward: deepen relationships and improve product value. These are your two goals to drive adoption and expansion in your customer base. GST recommends your team spend time developing a process to identify and improve leading indicators of adoption. This process should be well-defined, and clearly indicate the person accountable for each task in the process and the KPIs that will be tracked to measure the process. 

As always, we love hearing from you as to what you're experiencing as you drive growth for your company; please reach out below.

We'd love to hear from you!


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