Everything Nick Mehta said on any show that made the record, most notable first. Each card names its show and opens the statement there.
Mehta: Hire executives for current needs, not four years of scale
“I think often people miss more than they hit, and this is especially true now, because before people would often say, and boards would say, you need to hire for the person you need four years from now, right?
Because you're going to be growing so fast, and you…”
Mehta: Net retention is the primary valuation driver in SaaS
“The number one valuation driver in SAS is net retention.”
Mehta: The top B2B customer retention predictor is CEO friendship
“So in our business kind of predicting churn, you know what the number one predictor of customers retaining is? If the customer's CEO is friends with the vendor's CEO, right?”
Mehta: Growth-stage startup net retention rates dropped 10 to 20 points year-over-year
“I've seen a lot of startups for growth stage companies where their net retention rate is down 1015, or 20 points year over year.”
Mehta: Net retention rate is a 'vanity metric' mixing disparate levers
“Net retention rate is a mix. I said it's a bit of a scam because it's mixing a lot of things together. So vanity metric.”
Mehta: Smaller SaaS companies saw gross retention drop 5 to 10 points
“And we looked at this year versus last year on average gross attention is down one point.
But again, this includes a lot of big companies with more sticky products for smaller companies.
Gross attention is down anywhere from five to 10 points year over year.”
Mehta: Net Promoter Score is not valuable due to poor response rates
“This is a good metric. It's good to track it. Also, you often don't get good response rates. You also get random people filling it out. So most people don't find this super valuable.”
Mehta: Providing investors a weak customer reference is worse than no reference
“In fact, if you investor says, who are some of your customers I can talk to? If my opinion, giving them a weak reference is worse than no reference. It literally dilutes your whole pitch process and value.”
Mehta: Do not scale customer success simply by hiring more CSMs
“In fact, if I give you one piece of like advice from the beginning, it's don't just hire a bunch of CSMs, maybe one or two. It's heretical for me to say, by the way, but it's true. Go fix all your processes, your product, make it so you can scale without a cra…”
Mehta: Companies Hire CSMs as Band-Aids for Flawed Products
“There are so many companies out there that hire CSMs as a band-aid over the customer experience, over the product.”
Mehta: Single-product new logo acquisition inevitably plateaus due to TAM limits
“Every market has a certain number of buyers and eventually get to the point where you started selling to a lot of those buyers. Now doesn't mean you won't sell to more buyers, but often like the number of new buyers, like the number of new logos grows, grows, …”
Mehta: Parting with an executive at 15 months is worse than at 90 days
“Like, it's easy for somebody to join a company and leave, like, 90 days later. It's really hard if somebody leaves, like, a year and three months later after joining, because they've already put their imprints on the team, they've hired new people, they've reo…”
Mehta: Large, Storied Companies Rely on Internal Promotions Over Senior Hiring
“This is why when you get to really big companies and really storied companies, there's very little senior hiring. Most of the people in these huge companies grew up in the companies and moved around”
Mehta: SMB customers often require more hand-holding than enterprise clients
“And actually, ironically, SMBs sometimes need more hand-holding, because they have less internal capability, and they're, like, more distracted, so it's kind of weird, like, you know, the smallest customers sometimes need more help, so.”
Mehta: Delaying a Second Product Line Traps Slowing SaaS Companies
“And if you wait till you start slowing down a lot and then need to go launch something new, but you have to create it and you have to raise money for it. And that might take three, four or five years. You're in a trap, and so kind of that really, really can hu…”
Consumption SaaS NDR reaches 180% while classic subscriptions top at 130%
“So in consumption, you see companies with a 150, a 160, a 170, a 180% in, in sort of more your classic subscription, you know, one 10 is very good. One 20 is like, is really good. One 30 is like awesome, right? And so that's kind of the range. If you're more o…”
Founders should target utility and consumption-based pricing models
“So if you're starting a company from scratch, I do think the companies that are utility-based product-led growth, consumption-based pricing are the best businesses largely.”
Enterprise multi-year contract software cannot adopt utility pricing
“If you're selling enterprise software that is like sold to the CHRO and it's like a three-year contract, you're not going utility-based pricing anytime soon. Don't even waste time on that. That's just a total waste of time.”
Mehta: Making a major world impact highly correlates with being emotionally tortured
“A lot of the people that actually made an impact on the world Were incredibly tortured, and there's a high correlation, probably, maybe causation”
Mehta: The biggest lie wealthy people tell themselves is self-made success
“I would say you made it all happen. That you yourself are the one that made it all happen versus lots of other things that contributed to that.”
Mehta: Product teams will eventually drive the entire customer funnel
“And I think the product team is the whole funnel in the future.”
Mehta: Introducing a second product can save struggling customer accounts
“I think what's a little counterintuitive is when a customer hasn't gotten value or isn't happy, Sometimes actually this extra thing can actually tip the scales.”
Mehta: Many vendors engage in 'customer success washing' with legacy tools
“Some vendors are just taking their old stuff and dressing it up as customer success or whatever. And so there's a bit of a kind of like cloud washing. If you remember that where everyone says they're a cloud company, it's the same thing here where everyone say…”
Mehta: SaaS sales forecasts will suffer far worse than retention
“So I believe that your retention forecast will be hit, because some of your customers will go out of business, and some will hit budget troubles, but your sales forecast will probably hit significantly more than retention.”