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Was joined by @cbkrish in today's @justgogrind episode
Krish has raised $105M+ from @Accel, @insightpartners, Steadview Capital, and Tiger Global Management for @chargebee
Listen in:
https://open.spotify.com/episode/604jbwwseKV7pCEtefM4iN?si=EwpJ-fypSO-32jUrFHhl6g
A few takeaways from Krish
Krish has raised $105M+ from @Accel, @insightpartners, Steadview Capital, and Tiger Global Management for @chargebee
Listen in:
https://open.spotify.com/episode/604jbwwseKV7pCEtefM4iN?si=EwpJ-fypSO-32jUrFHhl6g
A few takeaways from Krish
1/ A general framework for early customer acquisition:
In the absence of your product, are the customers having the problem or not?
From there, where do you find those customers who are having the problem?
In the absence of your product, are the customers having the problem or not?
From there, where do you find those customers who are having the problem?
2/ Having a lot of different types of customers early on does allow you to get a good sample set so you can find the right product-market fit
Once you do, although it seems counterintuitive, think about how to let go of segments of customers in order to focus on the right type
Once you do, although it seems counterintuitive, think about how to let go of segments of customers in order to focus on the right type
3/ Sticker shock is necessary because pricing acts as a filter to know who you want as the right customers.
4/ In SaaS, churn metrics are important but pay more attention to the qualitative conversations rather than the quantitative aspect of the metrics.
Some churn is good while you find product-market fit.
Some churn is good while you find product-market fit.
5/ Don’t be afraid to create a bit of friction in the cancelation—you want to know why customers are leaving.
6/ When building a product, don’t substitute your own customer conversation by trying to outsource it.
One of the founders will have to be on the calls as much as possible until you are very sure you have a good product-market fit and then you can hand it over to others.
One of the founders will have to be on the calls as much as possible until you are very sure you have a good product-market fit and then you can hand it over to others.
7/ In customer conversations, important questions to ask at any stage are:
- How did you find us?
- What were you thinking when you landed on our website?
- What problem did you want to see solved?
- What are your other options?
- How did you find us?
- What were you thinking when you landed on our website?
- What problem did you want to see solved?
- What are your other options?
8/ If you have a freemium model, focus on building more value into your premium option in order to get more customers on that plan, as opposed to introducing another higher tier above it.
Your premium pricing should be justified by more than one vector.
Your premium pricing should be justified by more than one vector.
9/ Ask yourself at the beginning of the year, “What would it take to for me to charge all my new customers 20% more next year?”
You have a year to build enough value into your product to justify a 20% increase
Every year, ask how you can charge more by adding more value
You have a year to build enough value into your product to justify a 20% increase
Every year, ask how you can charge more by adding more value
10/ When evaluating what new features to build, consider:
1. Your tech deck
2. Feedback from your existing customers—features they’re requesting that will help their growth in a tangible way and that they will pay more for
3. New customers. How can you charge more from them?
1. Your tech deck
2. Feedback from your existing customers—features they’re requesting that will help their growth in a tangible way and that they will pay more for
3. New customers. How can you charge more from them?
11/ When introducing your contracts, time it out.
If you get at least 50% paid upfront, your cost of capital comes down, and you don’t have to raise too fast.
Your monthly burn will come down significantly.
If you get at least 50% paid upfront, your cost of capital comes down, and you don’t have to raise too fast.
Your monthly burn will come down significantly.
12/ When raising your first round of capital, optimize for operational angel investors who understand your customer problems and thus can help guide you.
13/ Don’t focus too much on trying to prove yourself to investors by showing traction.
Be honest and tell them what is and isn’t working. Find an investor who is patient and trusts you.
Be honest and tell them what is and isn’t working. Find an investor who is patient and trusts you.
14/ Learning to let go is one of the most valuable lessons as a founder. Set up the structure in the company that allows you to escape. Build the next team of executives.
We all have a shelf-life. Transition the founder to be making fewer decisions and allow your team to do it
We all have a shelf-life. Transition the founder to be making fewer decisions and allow your team to do it
Thanks, @cbkrish of @chargebee for coming on the show today!
Remember to subscribe to @justgogrind for new episodes with founders and investors every Monday and Thursday! https://podcasts.apple.com/us/podcast/just-go-grind-with-justin-gordon/id1397036566?mt=2
Remember to subscribe to @justgogrind for new episodes with founders and investors every Monday and Thursday! https://podcasts.apple.com/us/podcast/just-go-grind-with-justin-gordon/id1397036566?mt=2
