“In terms of employee retention, you have to earn the employee base every month, every quarter, every year, and they are much more valuable than any individual customer that you have. And we obsess over turn As a SaaS industry, which we should. Turning the, ah, in the team is actually much more expensive”
quote is from the automated transcript, cleaned for reading:
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More from Dharmesh Shah
Insight
Shah: Serving upmarket and low-end customers creates synergistic product advantages
“The investment we make on our upper market, 202,000 segment, we have these features that we add that we can kind of subside. We're making money. Yes. And then over time, our MO is we pull those down to lower tiers all the way down to the free tier. And so it b…”
Dharmesh ShahOct 18, 2022▶ 20:45The Secrets to Scaling with HubSpot's Founders Dharmesh Shah and Brian Halligan and SaaStr's CEO
Insight
Shah: Word-of-mouth growth depends on total happy users, not wallet share
“The reality is word of mouth is not a function of how much revenue you're making from a customer. Word of mouth is based on how many people love your product that are out there in the world. And it's much easier to do that and get that mind share versus, so lo…”
Dharmesh ShahOct 18, 2022▶ 46:24The Secrets to Scaling with HubSpot's Founders Dharmesh Shah and Brian Halligan and SaaStr's CEO
Insight
Shah: Standard SaaS LTV calculations underestimate long-term multi-product customer value
“The one thing we miss is that LTV as it's currently measured is based on our current churn rate and current market dynamics. Here's what a customer is worth that we sold right now. But if you've been out for a little while and you're like, oh, maybe we might a…”
Dharmesh ShahOct 18, 2022▶ 47:03The Secrets to Scaling with HubSpot's Founders Dharmesh Shah and Brian Halligan and SaaStr's CEO
Opinion
Shah: Launching HubSpot CRM completely free was a major strategic mistake
“So on the list of I'll call it a mistake because I think it was one. And there's a debate within HubSpot, but When we did HubSpot, we don't think we did it right. Because I think the point you're bringing out is exactly, and we're kind of still fighting this p…”
Dharmesh ShahOct 8, 2020▶ 7:52On Launching a Second Product with Dharmesh Shah, CTO / Co-Founder HubSpot
Insight
Shah: Higher CAC is justified by the option value of unreleased products
“There is a non-zero value for those customers beyond the LTV around what other things that we don't exist yet in the product portfolio that we will be able to sell them once we have them as customers. And I think that makes the math more interesting in terms o…”
Dharmesh ShahOct 8, 2020▶ 26:28On Launching a Second Product with Dharmesh Shah, CTO / Co-Founder HubSpot
Insight
Shah: People debt has a higher interest rate than tech debt
“There is such a thing as people debt, right? It's like, okay, well, I'm taking the shortcut right now, and I'm gonna hire all engineers, or all designers, or all product people, and no one in kind of people or the other kind of related disciplines, and I think…”
Dharmesh ShahOct 5, 2018▶ 21:44How to Build Happier Employees - Founder & CTO and Chief People Officer at HubSpot
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