Even though many of us are still in the eye of the storm, there’s an important fact to remember: During the pandemic, SaaS came to the rescue with superhero speed and efficiency. Over a billion people became dependent on SaaS solutions overnight. The internet, the cloud, and SaaS applications for communicating, signing documents, and collaborating in a socially-distanced world worked flawlessly.
The recurring revenue model made it all possible. Instead of having to buy, install and manage expensive infrastructure, solutions that were vital to keep us going were available to everyone from big companies to teachers and students.
Unfortunately, we’re now dealing with some of the after-effects of the return to normal, and finding that the order-taking, growth-at-all-costs mindset doesn’t work anymore.
Growth rate alone can’t be how we measure business health and potential in this new age. Sustainable and durable growth is the new Northstar, based on an efficient go-to-market engine.
Figure 1, from Public SaaS company data, shows how we might take both growth rate and go-to-market efficiency into account to determine our best course of action. Those below the trendline have varying growth rates but have likely focused on making their GTM engine appropriately efficient.
Durable vs. Sustainable vs. Scalable Growth