Chris Regester

I think it's to some extent, you know, if you're not bootstrapping and, you know, say you're capitalizing your business with investment, you know, at some point it's just like that's become, you know, the way the world works. You know, at some point, you know, when a VC looks at your business, they understand that your growth. will slow to the point of your net retention.

I think it's to some extent, you know, if you're not bootstrapping and, you know, say you're capitalizing your business with investment, you know, at some point it's just like that's become, you know, the way the world works. You know, at some point, you know, when a VC looks at your business, they understand that your growth. will slow to the point of your net retention.

So if your net retention is 120%, your growth will become 20% over time. So there's sort of this like, you know, we're all intrinsically motivated to drive growth from our customers, because ultimately, that's how people are going to value the business. When you look at, you know, when you look at analysis of

So if your net retention is 120%, your growth will become 20% over time. So there's sort of this like, you know, we're all intrinsically motivated to drive growth from our customers, because ultimately, that's how people are going to value the business. When you look at, you know, when you look at analysis of

ARR growth of a company against NRR of a company, you get a higher multiple valuation if your NRR is higher rather than if your ARR growth is higher, which I think is, for a lot of people, isn't immediately obvious. You sort of assume if I've got 100% growth, everyone will value us massively. But actually, if you've got 100% growth with 60% net churn, You don't get a good a good valuation.

ARR growth of a company against NRR of a company, you get a higher multiple valuation if your NRR is higher rather than if your ARR growth is higher, which I think is, for a lot of people, isn't immediately obvious. You sort of assume if I've got 100% growth, everyone will value us massively. But actually, if you've got 100% growth with 60% net churn, You don't get a good a good valuation.

So, yeah, I think that's there's a little bit of, you know, it happens naturally. And then a little bit is just sort of it's a discipline that we're all learning. I would argue that most or many, many companies have been built without. And you can, of course, survive for a very long time by just focusing on new business. You know, we've all been in companies that have done that. You can do that.

So, yeah, I think that's there's a little bit of, you know, it happens naturally. And then a little bit is just sort of it's a discipline that we're all learning. I would argue that most or many, many companies have been built without. And you can, of course, survive for a very long time by just focusing on new business. You know, we've all been in companies that have done that. You can do that.

But like this, you know, SaaS company I mentioned, you know, they did incredibly well. That's why we all know their name. But now it's not sustainable. So I think that has to be its recognition at some point.

But like this, you know, SaaS company I mentioned, you know, they did incredibly well. That's why we all know their name. But now it's not sustainable. So I think that has to be its recognition at some point.

uh you need to figure this out so it makes a lot of sense to do it early on and one of the things that i'm seeing now which i think is really interesting is um what a couple of things so one is that more startups are thinking about post sale and customer life cycles earlier on than they were before that's very very clear right it used to be these sort of think about how do we build a product and sell it and then you know it'll be a perfect product life will be good but instead now we're seeing more people think about that and more people building it into the product

uh you need to figure this out so it makes a lot of sense to do it early on and one of the things that i'm seeing now which i think is really interesting is um what a couple of things so one is that more startups are thinking about post sale and customer life cycles earlier on than they were before that's very very clear right it used to be these sort of think about how do we build a product and sell it and then you know it'll be a perfect product life will be good but instead now we're seeing more people think about that and more people building it into the product

which is where I think this will all go in a couple of years, is that products will hold the objective and everything will be, you productize customer management, which makes a lot of sense over time.

which is where I think this will all go in a couple of years, is that products will hold the objective and everything will be, you productize customer management, which makes a lot of sense over time.

So I think the foundation to a lot of these things, it's hard. And the hardest thing about Poseil is it is different for every organization. It's just like the moment anyone starts talking in generic language around Poseil, there's no point in listening anymore because it's just different. Are you selling to Enterprise? Are you selling to SMB? Yeah. Is it a vertically integrated?

So I think the foundation to a lot of these things, it's hard. And the hardest thing about Poseil is it is different for every organization. It's just like the moment anyone starts talking in generic language around Poseil, there's no point in listening anymore because it's just different. Are you selling to Enterprise? Are you selling to SMB? Yeah. Is it a vertically integrated?

What are you selling? There's so many things to it. But there's clearly something around you need to identify cohorts in your customers. And you need to look at cohorts by multiple different dimensions. So look at cohorts by size. What's their spend with you? What's their potential spend? By geography, look at the year of sale, product constellation, all of those things.

What are you selling? There's so many things to it. But there's clearly something around you need to identify cohorts in your customers. And you need to look at cohorts by multiple different dimensions. So look at cohorts by size. What's their spend with you? What's their potential spend? By geography, look at the year of sale, product constellation, all of those things.

You need to look at cohorts and see if you can isolate problematic cohorts and positive cohorts. There's clearly a thing there. You've got to look at life cycle. You know, you want to have at all times a rudimentary life cycle. And you want to have some sort of kind of North Star indicators of outcome success or outcome achievement. Some people talk about that as a health score.

You need to look at cohorts and see if you can isolate problematic cohorts and positive cohorts. There's clearly a thing there. You've got to look at life cycle. You know, you want to have at all times a rudimentary life cycle. And you want to have some sort of kind of North Star indicators of outcome success or outcome achievement. Some people talk about that as a health score.