Our Playbook to Customer-Led Growth: Guide for SaaS Companies
- CEO at DeckLinks, Speaker, Podcast Host
- Published on August 9, 2024
- Updated on September 13, 2024
Table of Contents
Customer-led growth transformed our approach to growing B2B SaaS. “Your product is good. But we’ve decided to go with your competitor.” I still remember the first time I received an email like this. It was for our first product – BriefBid – we’d poured our hearts and souls into. I was crushed. But more than that, I was confused. Our product had great features, a decent UI, and competitive pricing. What were we missing?
The answer wasn’t in our product or our pricing. It was in how we approached growth itself. Customer-led growth strategy changed everything for us.
In this guide, I’ll share what I’ve learned from implementing this approach at BriefBid and DeckLinks. I’ll show you how to stop guessing what your customers want and start growing your SaaS company based on real insights.
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Step 1: Understand Your Best Customers and What Drives Customer Satisfaction.
When it comes to customer-led growth, you need to understand who your “best customers” are. So what do I mean by “best customers”? These aren’t just any customers. They’re the ones who truly get value from your product and are essential to your business growth.
In my view, best customers share a few key characteristics:
- They derive significant value from your product. These are the users who can’t imagine their work without your solution.
- They’re happy and require very little to no maintenance. Your customer success teams aren’t constantly putting out fires for these clients.
- They have a high Customer Lifetime Value (CLTV). They stick around and often expand their usage over time.
- They’ve joined recently enough to remember life before your product. This is crucial for understanding the customer journey and pain points.
I once worked with a B2B SaaS company in the sales enablement space that saw an over 50% increase in website conversion and ~40% boost in trial-to-paid conversion. How? They focused on their best customers. By understanding these ideal users, they crafted messaging that resonated deeply and attracted more qualified new customers.
Not all customers are created equal. Some may be a drain on resources or a poor fit for your product. Zero in on your best customers. This will allow you to create a growth engine that attracts more of the right users. That in turn will improve Customer Acquisition Cost (CAC), customer satisfaction, and drive sustainable revenue growth.
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Step 2: Use the Customer Progress Framework (CPF).
Once you’ve identified your best customers, you gotta dive deeper into understanding them. This is where I like to use the Customer Progress Framework (CPF). I’ve used CPF countless times to uncover the real reasons new customers choose and stick with a SaaS product.
The Customer Progress Framework isn’t about demographics or simple user personas. It’s about understanding the progress your customers are trying to make in their lives or work. What are they really trying to accomplish?
I remember when we first launched DeckLinks, we thought our platform was primarily about efficient content sharing. But then we discovered our best customers were actually using the tool to elevate their sales processes and position themselves as trusted advisors to their prospects.
Sales teams were leveraging our PDF tracking features not just to know when follow up, but to have more informed conversations and build relationships with decision-makers. This insight completely transformed our business growth strategy. We shifted our messaging to focus on how DeckLinks helps sales reps become strategic partners to their clients. As a result, we’ve seen a significant boost in customer engagement, customer acquisition, and an increase in our customer retention rates.
Here’s why I think the Customer Progress Framework is so crucial:
- It reveals hidden motivations. Your customers might not even be fully aware of why they chose your SaaS product.
- It goes beyond surface-level features. You start focusing on the outcomes that truly matter to your customers.
- It aligns your entire organization. From product development to customer success teams, everyone can stand behind these customer insights.
- It gives your team better visibility into the entire customer journey. You can tailor experiences at every touchpoint to help customers achieve their desired outcomes.
- It drives innovation. Understanding these deeper needs often uncovers new opportunities for product expansion or improvement.
At the end of the day, it’s not just about what your SaaS product does. It’s about how it helps your customers become a better version of themselves.
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Step 3: Conduct Customer Research.
When it comes to understanding your best customers, nothing beats customer research. I’ve found that this step is often overlooked, but it’s absolutely crucial for any SaaS company pursuing customer-led growth strategy.
Here’s my process for doing effective customer research:
1. Customer feedback: Surveys vs Interviews.
Both have their place in customer research. Surveys are great for gathering quantitative customer data quickly. One of my friends in the fintech space, ran a survey that gave them crucial insights in just two weeks that helped them a lot. However, interviews offer deeper, qualitative insights. I prefer a mix of both when possible.
For surveys, keep them short and focused. Use a tool that allows for easy analysis. For interviews, aim for a conversational tone. Go for a coffee if you can. I’ve found that customers often reveal unexpected insights when they’re comfortable.
Use AI tools to record and summarize the interviews. Don’t let any bias affect this step of the process.
2. Key questions to ask.
You need to ask the right questions. Here are some questions I always include when we do research and collect customer feedback:
- What was going on in your work when you started looking for a solution like ours?
- What convinced you our product could solve your problem?
- What can you do now that you couldn’t do before using our product?
- What’s the most valuable aspect of our product for you?
- If our product disappeared tomorrow, what would you miss most? (cheesy, I know but it works!)
These questions help uncover the real customer pain points and the value they’re getting from your product.
3. Analyze customer insights to identify patterns.
Look for recurring themes in the customer feedback. What problems come up frequently? What benefits do customers consistently mention?
I remember when we did this for DeckLinks a while back, we noticed a pattern: customers kept mentioning how our PDF tracking features helped them have more informed follow-ups. This insight helped us shape our messaging and customer-led growth strategy.
Don’t just look at what customers say, but how they say it. The exact words they use can help you with your messaging later on. You’d be surprised!
Also, if existing customers are using your product in unexpected ways, that could be an inspiration for future product development or marketing. I really love this one! Many of our features were inspired by these customers.
Your goal isn’t just to collect data, but to gain actionable customer insights. These insights will form the backbone of your customer-led growth approach, help you with everything from your product roadmap to your marketing strategies.
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Step 4: Map the Customer Journey.
So you’ve gathered those crucial customer insights. Now what? Well this is where the fun part begins. You need to map out the customer journey! This is where you really start to see the power of a customer-led growth strategy in action.
Phase #1. The struggle phase.
So the first phase of the journey is the “Struggle phase”. This is where your potential customers are struggling with a problem, often before they even know your solution exists.
Problem awareness is stage is all about the moment when your customers realize. “Something’s got to change.” For DeckLinks, we discovered that many of our best customers hit this point when they realized their sales messages were getting lost in a game of telephone.
It’s crucial to understand:
- What triggers this awareness?
- What emotions are they experiencing?
- How does this problem impact their work or life?
For example, we found that many sales teams became aware of their problem when they lost a big deal because decision-makers they didn’t have direct access to misunderstood or overlooked key points in their sales decks.
The sales reps had shared their message with a product champion or one or two decision-makers, relying on them to accurately relay the information to other stakeholders. This game of telephone often resulted in diluted or misinterpreted messages.
This frustration coupled with the pressure to find a way to directly influence all decision-makers, often catalyzed their search for a better solution.
Once customers are aware of their problem, they start looking for solutions. This is where they might stumble upon your SaaS… or your competitor products.
The questions I like to ask:
- Where do they go to find solutions?
- What terms do they search for?
- Who do they ask for advice?
In our case, we discovered that many potential customers were asking peers in sales communities and on social media about tools for ensuring message consistency across all stakeholders, even those they couldn’t meet directly.
They were searching for terms like “sales deck sharing” or “asynchronous sales presentations”. This insight helped us refine our SEO and marketing strategies to highlight DeckLinks’ PDF video-narration feature as a solution to this specific problem.
Remember, at this stage, customers aren’t just looking for features. They’re seeking OUTCOMES. They want to know how your solution will make their life better or their work easier. For DeckLinks users, the outcome was the ability for sales reps to share video-narrated sales decks directly with all decision-makers, ensuring their message was delivered exactly as intended, without relying on intermediaries.
Phase #2. The evaluation phase.
The “Evaluation phase” of the customer journey is where potential customers start to seriously consider your solution. You gotta nail this phase of customer lifecycle.
The “First value” is the “aha!” moment when customers first experience the value of your SaaS. For DeckLinks, this “aha!” moment often happens in two parts. First, when a sales rep creates their first video-narrated sales deck. Then, when they share it with a previously unreachable decision-maker (directly or via their product champion) and see engagement analytics.
Things you need to keep in mind:
- How quickly can new users reach this moment?
- What specific action or feature delivers this first value?
- How can you guide users to this point efficiently?
By streamlining the steps to create and share a video-narrated deck, we saw a significant increase in users reaching this first value moment. This led to higher product activation rates and improved customer retention. Very important for SaaS companies.
The “Value realization” is where customers fully grasp the impact of your solution on their work or life. For DeckLinks users, value realization often occurs when they see engagement data showing that previously unreachable decision-makers have viewed their sales presentation. We send email notifications whenever decks are viewed by the recipients.
At the value realization stage, you need to consider:
- What metrics or outcomes signify full value realization?
- How can you help users recognize and articulate this value?
- What additional support or resources can you provide to maximize value?
We discovered that users who reached this stage were far more likely to become long-term, high-value customers.
To capitalize on this, you can try some of these strategies:
- In-app surveys: Use targeted, short surveys to capture feedback at key value moments. This not only provides valuable insights but also helps users articulate the value they’re experiencing.
- Success milestones: Set up automated notifications to celebrate when users hit important product usage or outcome milestones.
- Case study invitations: Reach out to users showing high engagement and invite them to share their success story. This not only provides social proof for your marketing but also reinforces the value in the customer’s mind.
- Personalized usage reports: Send regular reports highlighting the user’s key metrics and the impact they’re achieving.
- Value-focused check-ins: Have your customer success team conduct periodic check-ins focused on value realization. Use these calls to understand how the product is impacting their work and to suggest new ways to extract even more value.
- User community: Create a Slack or Discord channel where customers can share their wins and tips with each other. This peer-to-peer validation can be incredibly powerful in cementing the value of your product.
By implementing these customer-led growth strategies, you’re not just measuring value realization – you’re actively facilitating it. The evaluation phase isn’t just about your product’s features. It’s about how those features translate into tangible outcomes for your customers.
Phase #3. The growth phase.
The “Growth phase” of the customer journey is where customer-led growth really starts to compound. This is where your customers become your biggest asset in driving sustainable growth for your SaaS.
The key here is to ensure your customers are consistently deriving value from your product over time. Here are some strategies I’ve seen work well for many SaaS companies:
- Regular feature updates based on user feedback
- Personalized usage tips to help users get more from the product
- Automated workflows to streamline repetitive tasks
We saw a significant boost in customer retention when we’ve improved our “deck analytics” dashboard. This allowed our users to better track their engagement metrics holistically, motivating them to continually improve their outreach strategies and sales collateral.
If you do everything right, your customers will not only expand their own usage but also become brand advocates, bringing new and loyal customers to your SaaS.
To promote this you can create a referral programs and showcase customer success stories in your marketing materials, blog posts, webinars, social media, etc.
Your customers are your partners in growth. Their success is your success. By aligning your goals with theirs, you create a flywheel effect that drives sustainable customer-led growth.
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Step 5: Set KPIs for Your Customer Led-Growth Strategy.
Now it’s time for you to measure the effectiveness of your customer led growth strategy. Set meaningful KPIs. You want to better understand the story those numbers tell about your customers’ progress.
For each stage of the customer acquisition journey, you need metrics that reflect the customer’s progress.
Here’s how we approach this:
- Struggle phase: We track search volumes for key terms and engagement rates on our content.
- Evaluation phase: We measure free trial sign-ups and feature adoption rates during the trial period.
- Growth phase: We look at customer retention rates, feature usage frequency, and referral rates.
The key here is to choose metrics that align with the customer’s goals at each stage, not just your own business objectives.
Below is a table of specific KPIs that every SaaS company should consider when implementing customer-led growth strategy. These KPIs will help you better understand how well you’re delivering value throughout the customer journey.
| Phase | KPI | Description | Why It Matters |
|---|---|---|---|
| Struggle | Search Volume | Number of searches for problem-related keywords | Indicates market demand and awareness |
| Struggle | Content Engagement Rate | Percentage of visitors engaging with educational content | Shows relevance of your content to the target audience |
| Struggle | Lead Magnet Conversions | Number of downloads for problem-solving resources | Measures effectiveness in capturing leads |
| Struggle | Time on Site | Average time visitors spend on your website | Indicates interest level in your SaaS |
| Struggle | Bounce Rate | Percentage of visitors who leave after viewing only one page | Helps assess relevance of landing pages |
| Evaluation | Free Trial Sign-ups | Number of users starting a free trial | Measures initial interest in your product |
| Evaluation | Time to First Value | How quickly users achieve their first meaningful outcome | Indicates ease of onboarding and initial product value |
| Evaluation | Feature Adoption Rate | Percentage of key features used during trial | Shows which features are most valuable to users |
| Evaluation | Trial to Paid Conversion | Percentage of trials converting to paid accounts | Measures effectiveness of your trial in demonstrating value |
| Evaluation | Demo Request Rate | Percentage of visitors requesting a product demo | Indicates serious interest from potential customers |
| Evaluation | Qualified Lead Rate | Percentage of leads that meet ideal customer criteria | Helps focus sales efforts on high-potential prospects |
| Growth | Customer Retention Rate | Percentage of customers retained over a given period | Indicates ongoing value delivery and customer satisfaction |
| Growth | Net Promoter Score (NPS) | Measure of customer satisfaction and loyalty | Predicts growth through customer satisfaction |
| Growth | Feature Usage Frequency | How often key features are used by customers | Indicates which features drive ongoing value |
| Growth | Expansion Revenue | Additional revenue from existing customers | Measures success in growing customer accounts |
| Growth | Customer Lifetime Value | Total value a customer brings over their lifetime | Helps in assessing long-term customer relationships |
| Growth | Referral Rate | Percentage of customers referring new prospects | Indicates customer advocacy and organic growth |
| Growth | Support Ticket Volume | Number of support requests per customer | Helps assess product usability and customer success efforts |
| Growth | Time to Resolution | Average time to resolve customer issues | Indicates efficiency of customer support |
| Growth | Product Stickiness | Frequency and depth of product usage | Measures how integral your product is to customers' workflows |
Here’s why it’s important to track KPIs when tweaking customer-led growth strategies:
- It validates your growth strategy: When we saw our “time to first value” decrease by 40% after simplifying our onboarding, we knew we were on the right track.
- It identifies areas for improvement: Low adoption rates for certain features led us to either ditching or reworking them.
- It aligns teams: When everyone from product to customer success is working towards the same measurable goals, real magic happens.
- It motivates customers: Sharing success metrics with customers (like how many times their sales deck was viewed and by whom) reinforces the value they’re getting.
- It drives investment decisions: Clear ROI metrics can help you secure budget for expanding your SaaS capabilities.
Your goal here isn’t just to collect data but to gain actionable customer insights that in turn can help you more effectively execute your customer-led growth strategies.
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Step 6: Develop Customer-Centric Messaging.
Once you understand what success looks like for your customers, you can communicate your value in a way that truly resonates.
Customer-centric messaging is not just about what you say, but how you say it and where you say it. This part is very very tricky. You have to be very analytical and creative at the same time.
Here are the things I always keep in mind:
- Value proposition: A clear statement of how we solve our customers’ problems.
- Key benefits: The outcomes our customers achieve with our product.
- Competitive advantages: What sets us apart from alternatives.
- Customer pain points: The struggles our product addresses.
- Brand voice and tone: How we communicate to resonate with our audience.
This will help you ensure consistency across all your touchpoints, from your website to your sales calls.
Here’s a little hack that I like to use: When in doubt, resort to using your customers’ own words. You’d be surprised how well your existing customers can pitch your SaaS!
Not all messages are created equal though. We’ve found success by prioritizing our messaging based on what matters most to our customers.
Here’s how we structure it:
- Primary message: The core problem we solve (e.g., “Reach all decision-makers with your message, exactly as intended”)
- Secondary messages: Key benefits and outcomes (e.g., “Eliminate the ‘telephone game’ in your sales process”)
- Supporting points: Features and capabilities that deliver on the promises (e.g., “Easily video-narrate your sales decks with a teleprompter”)
This hierarchy helps us lead with what resonates most, rather than getting lost in feature lists.
But customer-centric messaging isn’t just for your website. You need to apply it across all customer touchpoints: email sequences, in-app messaging, sales collateral, customer support, etc.
Your goal is to create a cohesive customer experience that reinforces the value proposition of your SaaS at every turn.
I remember when we first implemented this approach at DeckLinks. We saw a ~30% increase in our trial-to-paid conversion rate within the first month. Why? Because our messaging finally clicked with what our ideal customers really cared about.
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Step 7. Optimize the Customer Experience.
Great customer-centric messaging is just the start. It’s how you deliver on those promises that truly drives customer-led growth.
1. Identify customer experience gaps.
The first step is to find the gaps between what your new customers expect and what they’re actually experiencing. We’ve experimented with the following methods and they’ve worked pretty well for us:
- Customer journey mapping: We plot out every touchpoint and look for friction points.
- User testing: We track features adoption rates.
- Customer feedback loops: We do regular check-ins to gather customer insights.
One gap we identified was that users didn’t realize they could track individual recipients by creating custom links. This insight helped our product team quite a bit.
2. Prioritizing improvements.
Once you’ve identified the customer experience gaps gaps, you need to prioritize. I’m no pro at this but I found this matrix a while back and it works for me:
- Impact on customer success
- Effort required to implement
- Alignment with business goals
This helps our team focus on high-impact, low-effort improvements that align with our customer-led growth strategy.
For example, we prioritized creating a bulk link creating feature for decks because it scored high on all three criteria.
3. Implement changes.
Now comes the fun part! Actually making changes.
I always recommend start with your website. It is often the first touchpoint for potential customers. The first thing you want to do is to simplify your homepage messaging to focus on the key customer pain point(s). Don’t overwhelm your website visitors by covering too many pain points and walls of text.
Add video testimonials from customers who solved this exact problem.
Create a interactive demo that showcases your product. It was easy for our product since it’s got user and client facing sides. If it’s not possible for yours, then record quick snaps of how people use your platform and reach value realization stage. Aim for quick 5-10 sec videos that automatically play on a loop, muted.
Consider tackling customer experience during onboarding to boost trial-to-paid conversion rate:
- Guide users to their first “aha moment” within minutes of sign-up.
- Personalize the onboarding flow based on user role or primary use case.
- Offer a “quick win” checklist to help users achieve value fast.
- Implement a milestone-based onboarding email sequence.
- Use interactive walkthroughs to familiarize users with key features.
Personally, I’m not a big fan of complex walkthroughs because if you have to resort to them then your product team hasn’t fully optimized the UX/UI. Many people also skip them and find very annoying. If you have a very complex product, then it’s ok.
To improve adoption rates and improve customer retention consider these improvements:
- Implement contextual help tooltips to guide users through complex features.
- Create a dashboard showing key metrics relevant to the user’s goals.
- Add a “success center” with best practices, tutorials, and case studies.
- Use in-app messaging to highlight new or underutilized features.
- Implement a feedback mechanism for continuous improvement.
- Offer in-app chat support for real-time problem-solving. Having a live chat with real people can be quite costly. AI chat bots can work great for simpler SaaS products.
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Step 8: Measure and Iterate Your Customer-Led Growth Strategy.
Remember those KPIs we set earlier? It’s time to put them to work.
We’ve set up dashboards that give us real-time insights into our key metrics. Here’s what we focus on:
- User activation rate: How many new users are reaching their “aha moment”?
- Time-to-value: How quickly are users achieving their first meaningful outcome?
- Feature adoption rates: Which features are being used, and how often?
We review these metrics twice a month and more often when we release new features impacting the main flow.
When working on improving your customer-led growth strategy always look for:
- Trends: Are your metrics improving over time?
- Correlations: Do improvements in one area lead to gains in others?
- Anomalies: Are there any unexpected spikes or dips you need to investigate?
For example, we noticed that users who video-narrated their PDFs and sent two trackable links within their first week were about 3x more likely to convert to paid customers. This insight led us to prioritize promoting this in our onboarding emails.
We always run small, quick experiments to test new ideas from onboarding flows to in-app messaging.
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How to Overcome Most Common Customer-Led Growth Objections
I feel like it’s important to share some of the most common customer-led growth objections I and my friends in the SaaS industry have encountered.
Objection #1: "Customer research takes too long."
I hear this one a lot, especially from fast-moving SaaS startups. In my experience good research doesn’t have to be a months-long process.
For example, we once ran a focused survey that gave us decisive insights in just two weeks. These customer insights helped us increase conversions on relevant lading pages by ~30%.
It’s not about perfection. You just need quality insights to make informed decisions.
Objection #2: "We already know our customers."
This is a tricky one, often coming from founders or long-time sales and marketing team members. While it’s true you may have deep knowledge of your customers, markets and customer needs evolve. What was true a year ago might not be true today.
Objection #3: "Our product is too complex for customer led growth."
I’ve heard this objection from B2B SaaS companies with intricate products. They worry that customer-led growth might oversimplify their offering. But complexity is exactly why you need this approach.
Break down complex feature set into digestible, value-driven messaging.
Objection #4: "We don't have the resources for this."
Many companies, especially smaller ones, worry about the resources required for customer-led growth. We’re a bootstrapped SaaS company and this approach works for us. Begin with a lean team and gradually expand as you start seeing results. The key is to start somewhere and build from there.
Objection #5: Biases.
Biases can significantly impact your customer-led growth strategy. Here are a few you may have to overcome:
- Confirmation bias: Looking for data that confirms our existing beliefs. We combat this by actively seeking out contradictory information.
- Recency bias: Giving too much weight to recent feedback. Ensure your research samples span different customer cohorts and time periods.
- Selection bias: Only talking to happy customers. Bring churned customers and those who’ve given you negative feedback.
- Sunk cost: Sticking with strategies because we’ve invested in them. If it’s not working, it’s not working.
The goal of customer-led growth isn’t to confirm what you already believe but to uncover new insights that drive real value for your customers and sustainable growth for your business.
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Conclusion
Customer-led growth has been working great for us at DeckLinks. By putting our customers at the center of everything we do, we’ve seen remarkable improvements in our KPIs. Our customer retention rates have greatly improved, and our expansion revenue has grown significantly.
But it’s not just about the numbers. Customer-led growth approach has transformed how we think about our product and our customers. We’re now more agile, more responsive, and better equipped to meet our customers’ evolving needs.
Implementing customer-led growth isn’t always easy. It requires challenging your assumptions and sometimes making tough decisions. But in my experience, it’s one of the most effective way to drive sustainable growth as a SaaS company.
FAQs
What is customer-led growth in SaaS?
Customer-led growth is a strategy that puts customer needs at the center of all business decisions. It involves deeply understanding customer pain points, aligning product development and marketing efforts with customer goals, and continuously iterating based on customer feedback to drive sustainable growth.
How does customer-led growth differ from traditional growth strategies?
Unlike traditional growth strategies that focus on product features or sales tactics, customer-led growth prioritizes understanding and solving customer problems. It emphasizes continuous learning from customers, aligning all business functions with customer needs, and measuring success based on customer outcomes.
What are the key benefits of implementing a customer-led growth strategy?
Customer-led growth can lead to higher conversion rates, reduced churn, increased customer lifetime value, and more efficient acquisition. It also fosters stronger customer relationships, drives product innovation based on real needs, and creates a sustainable competitive advantage through deep customer understanding.
How does customer-led growth impact product development in SaaS?
Customer-led growth shifts product development focus from feature-building to solving customer problems. It prioritizes features that deliver the most customer value, informs product roadmaps based on customer needs, and encourages continuous iteration based on usage data and feedback.
Can small SaaS companies effectively implement customer-led growth?
Yes, small SaaS companies can effectively implement customer-led growth. In fact, their size can be an advantage, allowing for closer customer relationships and quicker implementation of insights. Start with basic customer research and feedback loops, then scale efforts as the company grows.
About the Author
Lidia Vijga is a seasoned professional with 10 years of first-hand experience in B2B sales and B2B marketing. She has a proven track record of driving growth for companies across various industries. Throughout her career, Lidia has led numerous successful sales campaigns and implemented innovative marketing strategies that have significantly increased revenue and reduced customer acquisition cost for her clients. Lidia regularly shares her insights and experiences on LinkedIn, webinars, and public speaking engagements. Lidia believes in the power of personal qualities such as kindness, empathy, and the willingness to understand others. She is committed to empowering client-facing teams with tools that enhance their talent instead of automating it, and she firmly believes that teams that show their human side grow companies much faster.
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