Blue Horizon’s reading list is a curated collection of articles for SaaS founders and management teams. We are entrepreneurs and operators who have lived through the process of founding and scaling software companies. Here are the articles and resources we found useful this week.
Customer Onboarding Effort and Retention
by David Cummings, davidcummings.org
We weren’t self-service freemium. We had wonderful humans helping make our customers successful, and that took time…The more effort it takes to onboard a customer, the more committed they are to the product. The more committed they are to working through the inevitable kinks. The more likely they are to renew, assuming a good experience.
Alternative Approaches to Customer Satisfaction Metrics
Kristen Hayer, thesuccessleague.io
How should you choose the metrics that are right for you? Keep in mind that metrics do two things. First, they serve as a measure of success to the broader organization and help to benchmark you against similar companies. This lets you and your leadership team ensure that your business model stays on track for growth. Second, they are a management tool that allows you to measure the performance of your program and team members. You may find that one metric (say, NPS or Referenceable Customers) best serves the first purpose, while another (say, Customer Effort Score or CSAT) best serves the second.
My Top 10 Learnings From Ben Chestnut, CEO of Mailchimp
by Jason Lemkin, saastr.com
Interesting points include:
Yes, bootstrapping really does take 3-4 years longer.
You may not need a moat. Maybe let them go if they aren’t happy. Happiness is a moat.
It can take 24+ mos. to get to real Product Market Fit
Today, around 80% of a data scientists’ time is spent cleaning data, and models are typically only trained by thousands of examples, rather than millions. These two facts alone—the time spent dealing with data, and the lack of sufficient data examples used to train models—are reason enough to see that data sets deserve more attention than they’ve received historically.
Blue Horizon acquires and invests in profitable software businesses with stable recurring revenue streams. The Blue Horizon platform combines long-term capital and industry expertise with an operating model that enables businesses and their leaders to focus on growth and profitability.