Terminus just announced yesterday its $90M Series C funding. Congrats!! Tim Kopp, Terminus CEO and Executive Chairman, recently shared with the SaaStr community how they’ve fueled sustainable business by prioritizing Net Revenue Retention.
Why Net Retention?
While many SaaS companies are familiar with acquisition growth efforts, what you might be missing is the massive revenue potential sitting right under your noses. (Hint: It’s your customer base.) Tim swears by the power of net retention. In fact, Terminus was able to grow its NRR by 35% in just two quarters, even amid the COVID-19 pandemic.
The reason net retention is so necessary is because of its impact on the company –– the greater the NRR, the faster the growth. In short, net retention:
- Provides consistent growth, even through a downturn.
- Opens opportunities for expansion.
- Creates advocates. Happy Customers = Your Best Advocates.
Three Pillars of Net Retention Growth
People. Terminus reorganized its org structure to move new business, retention, and account management under the CRO. Tim says, “My view is that retention and acquisition both should sit under the same leader. Why would you go about acquiring customers you can’t retain?”
They also introduced Terminus 360, a dedicated, specialized team committed to customer success from onboarding and beyond, with support available 24/7.
Process. To prioritize your people, you need a reliable process that caters to customers. Terminus encourages a culture of predictability to avoid disruptions and unhappy customers. They moved dedicated resources to grow their customer marketing and created a new account management team that previously did not exist.
Product. Always have more to sell. Terminus sets a laser-focus on expansion and ROI. They became a multi-product company several years ago, and they continue building momentum behind cross-selling and upselling.
Want more? Enter your email below for the latest SaaStr updates
Retention is the New Acquisition
To maximize growth, you must dedicate your efforts to net retention. To deploy the most effective strategy, Tim recommends the following tips:
- Use an ABM framework to target your high-value customer accounts.
- Engage your customers via a multi-channel strategy.
- Leverage Customer Success to get the data you need to run the right plays.
- Measure NDS/Satisfaction scores, usage rates, and expansion opportunities.
Tim goes on to emphasize that helping, rather than selling, will yield your desired results. Play the long game with customers. Terminus employs strategies like hosting VIP customer webinars, offering high-value, practical tips, and implementing fun and unique customer marketing campaigns.
True Full-Funnel Marketing is the Future
In closing his playbook, Tim laid out the ideal full-funnel strategy for higher revenue:
- Align marketing programs to drive TOFU (top-of-the-funnel) acquisition.
- The highest leverage is in the middle of the funnel. Do fewer things more effectively.
- Collaborate with your sales team to accelerate the pipeline and close deals faster at the bottom of the funnel.
- Build out customer campaigns that deliver real value, drive engagement, and, most importantly, have some fun.
Key Takeaways
- There is no single silver bullet that will grow net retention right away. Create a unified experience with the product, people, and process.
- Full-funnel marketing is the future.
- Retention is the new acquisition.
