SaaS founders should prioritize product stickiness over CAC payback periods
Rob Bernshteyn · 884 SaaS: From Startup to $1b+ IPO, the Coupa Story · Dec 25, 2017 · at 9:08
Coupa CEO Rob Bernshteyn explains why enterprise software startups should focus on long-term retention rather than strict short-term payback periods.
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“I would much more have them, I would suggest for them to focus much more on how sticky their product is, because I get the point of getting their money back and recovering and the importance of that, but if they turn after three years or four years, eventually you've burned out, you burn anyways, you're much better thinking about how could I integrate to existing systems? How can I make the platform sticky and valuable such that the likelihood of churn is very, very low, whether it's your four or five, six or seven. I think that's how you build a long-term valuable business. I wouldn't be overly worried about all got to get the money back within this period. You gotta, if you believe in your offering and you see the opportunity set in the market, I'd focus more on stickiness and long-term value creation.”
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