Account-based expansion focuses on growth within existing customer accounts, rather than solely chasing new accounts, leading to sustainable growth and lower acquisition costs.
The 40/40/20 rule states that growing SaaS companies should allocate 40% of their operating expenses to go-to-market efforts, maximizing GTM efficiency.
GTM efficiency encompasses customer acquisition, retention, and expansion, which are critical for driving revenue growth in today's economic climate.
A 5X LTV-to-CAC ratio is a standard benchmark in SaaS; reallocating efforts towards existing accounts could yield better cost-effectiveness than acquiring new customers.
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