The Ledger
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OnStrategy refuses to sell software without mandatory bundled professional services
“There's no question. We don't ask you if you want services. We don't ask you if you want an add-on. If you want to buy from us, it's software and services. That's how we sell it.”
Olson avoids per-seat pricing because it creates barriers to OKR adoption
“We don't sell per seat, and the reason that we did that is because when we deploy OKRs, the more people that have OKRs, the better off we are. Why would we put a pricing barrier up in front of our customers?”
OnStrategy measures customer success by client KPI attainment, not app utilization
“We built our own metrics based on not utilization because we don't really care about app utilization. We care about the fact that our clients are delivering organizational performance. So if they're not hitting their KPIs and their OKRs, We are failing as an o…”
Olson says a 30% price hike pushed OnStrategy's retention past 100%
“We increased our prices about 30%. We shifted to a quarterly pricing model, matched that up with our, like, our job to be done, which is managing a quarterly process and got paid more for that. So that's really working for us, and that's how we got to more tha…”
Olson says selling OKRs via outbound is like selling a root canal
“We don't do any outbound because selling strategy and OKRs is like selling a root canal. So we stopped doing that. It doesn't work for us.”
OnStrategy pairs every client with senior strategists instead of support reps
“Every single client is assigned to a senior strategist. They know The work. They know how to deliver strategic plans. They know how to write OKRs. They know how to manage a quarterly performance cycle. We do not have low, lower trained customer service reps.”
OnStrategy achieved 107% net retention via a hybrid software-service model
“Just this year, we changed it even more, and that's how we got the expansion revenue that got us to the 107%.”
Olson intentionally churned $1.5M in zombie revenue to rebuild OnStrategy
“We started all over again, and we churned out all, a 1000000.2, 1.5, In, in zombie revenue over the past, we have a little bit left, and we rebuilt the whole business.”
Shifting to bottom-of-funnel conversion content was OnStrategy's biggest growth unlock
“Producing content's easy. We are producing content, all of us, all of the time. Producing low in the funnel content that converts is something that we shifted to, and that was a big unlock for us.”
OnStrategy reached $1.5M in ARR but hit a wall at 70% retention
“So we grew a SAS DIY model up to about 1.5000000 and we had churn, or we had a retention of about 70% pretty high churn. We couldn't change it. We couldn't fix it. We couldn't retain any more customers.”
Olson says OnStrategy is fully bootstrapped, debt-free, and pays profit sharing
“We are fully bootstrapped. We have no debt. Nathan. We are working too hard. We have no debt. We are profitable. We pay, pay, pay profit sharing and we're still here.”