Predictability is the New Growth

In this economy, predictability is the new growth. 🚀📈

And yet, I still meet so many who are grinding away building pipeline and adding headcount. In fact, just yesterday morning, this topic came up over coffee with a colleague who was lamenting this same approach. 😒

And they’re doing this building without a clear view of the two metrics that make growth sustainable:

LTV

And NRR.

All growth leaders are tracking new revenue. 📝

And many keep a close eye on Customer Acquisition Cost (CAC).🔎

But a surprising number don’t measure Lifetime Value (LTV) or Net Revenue Retention (NRR) with intention. 😮

This creates unnecessary risk. 🚩

Because when your strategy leans too hard on acquiring new customers:

• CAC remains high; ⬆️

• Growth forecasts lack confidence; 👎

• Growth becomes more volatile than predictable. 🎢

But when you focus on maximizing LTV:

• Retention, upsell, and expansion take pressure off net-new wins; 💪

• CAC becomes more efficient and a valuable investment; 📉

• Revenue stabilizes, and valuation multiples rise. 📈

This doesn’t require magic. It requires visibility and prioritization:

• Define what a healthy, renewing customer looks like; 🩺

• Track health and other leading indicators; 🚦

• Equip your team with playbooks to mitigate risk and drive longer-term value. 📚

Then, growth becomes more planful.

Your strategy gets more resilient.

To scale through uncertainty, don’t just look at what you’re adding to the top line. 🔝

Track what you’ve already earned, keep it, and expand it. 💰